Wedbush Brokers Reduce Earnings Estimates for Mastercard Inc (NYSE:MA)
Mastercard Inc (NYSE:MA) – Equities research analysts at Wedbush reduced their Q2 2020 earnings per share estimates for shares of Mastercard in a research report issued on Monday, March 23rd. Wedbush analyst M. Katri now anticipates that the credit services provider will earn $1.98 per share for the quarter, down from their previous estimate of $2.26. Wedbush also issued estimates for Mastercard’s Q3 2020 earnings at $1.52 EPS, Q4 2020 earnings at $2.26 EPS, FY2020 earnings at $7.71 EPS, Q2 2021 earnings at $2.27 EPS and FY2021 earnings at $9.68 EPS.
Mastercard (NYSE:MA) last posted its earnings results on Wednesday, January 29th. The credit services provider reported $1.96 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.87 by $0.09. The firm had revenue of $4.41 billion for the quarter, compared to analyst estimates of $4.40 billion. Mastercard had a net margin of 48.08% and a return on equity of 150.46%. The company’s revenue for the quarter was up 15.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.55 EPS.
Shares of NYSE MA opened at $256.48 on Thursday. The company has a market capitalization of $238.28 billion, a P/E ratio of 32.30, a price-to-earnings-growth ratio of 1.79 and a beta of 1.00. Mastercard has a 52-week low of $199.99 and a 52-week high of $347.25. The company has a debt-to-equity ratio of 1.44, a quick ratio of 1.42 and a current ratio of 1.42. The company’s 50 day moving average price is $294.04 and its 200-day moving average price is $290.15.
A number of large investors have recently added to or reduced their stakes in MA. Norges Bank bought a new stake in Mastercard in the fourth quarter valued at $2,754,179,000. Johanson Financial Advisors Inc. grew its stake in Mastercard by 29,736.5% during the 4th quarter. Johanson Financial Advisors Inc. now owns 5,985,794 shares of the credit services provider’s stock worth $20,043,000 after purchasing an additional 5,965,732 shares in the last quarter. Private Advisor Group LLC grew its stake in Mastercard by 101.0% during the 4th quarter. Private Advisor Group LLC now owns 47,225 shares of the credit services provider’s stock worth $14,041,000 after purchasing an additional 4,942,155 shares in the last quarter. Bank of New York Mellon Corp grew its stake in Mastercard by 6.6% during the 4th quarter. Bank of New York Mellon Corp now owns 12,483,087 shares of the credit services provider’s stock worth $3,727,324,000 after purchasing an additional 772,021 shares in the last quarter. Finally, UBS Asset Management Americas Inc. lifted its holdings in shares of Mastercard by 11.4% in the 4th quarter. UBS Asset Management Americas Inc. now owns 6,474,640 shares of the credit services provider’s stock valued at $1,933,263,000 after purchasing an additional 663,720 shares during the last quarter. Institutional investors and hedge funds own 75.61% of the company’s stock.
In related news, insider Edward Grunde Mclaughlin sold 28,526 shares of Mastercard stock in a transaction on Thursday, January 2nd. The shares were sold at an average price of $302.16, for a total value of $8,619,416.16. Following the sale, the insider now owns 43,215 shares in the company, valued at $13,057,844.40. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Lance Darrell Gordon Uggla purchased 1,000 shares of the business’s stock in a transaction that occurred on Wednesday, March 11th. The stock was bought at an average price of $265.00 per share, for a total transaction of $265,000.00. Following the acquisition, the director now owns 5,691 shares of the company’s stock, valued at $1,508,115. The disclosure for this purchase can be found here. Insiders sold 425,819 shares of company stock worth $135,948,244 in the last 90 days. Company insiders own 3.70% of the company’s stock.
Mastercard announced that its board has authorized a stock buyback plan on Tuesday, December 3rd that permits the company to repurchase $8.00 billion in shares. This repurchase authorization permits the credit services provider to repurchase up to 2.7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board believes its shares are undervalued.
The company also recently announced a quarterly dividend, which will be paid on Friday, May 8th. Stockholders of record on Thursday, April 9th will be issued a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 0.62%. The ex-dividend date is Wednesday, April 8th. Mastercard’s dividend payout ratio is 20.59%.
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services.
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