Mastercard (NYSE:MA) Posts Earnings Results

Mastercard (NYSE:MA) issued its quarterly earnings results on Thursday. The credit services provider reported $3.82 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.71 by $0.11, Zacks reports. Mastercard had a return on equity of 178.27% and a net margin of 45.26%.

Mastercard Stock Performance

MA stock opened at $555.63 on Friday. The firm has a market cap of $509.97 billion, a P/E ratio of 42.03, a P/E/G ratio of 2.17 and a beta of 1.10. The stock’s 50 day simple moving average is $528.28 and its 200 day simple moving average is $501.03. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 2.36. Mastercard has a 12-month low of $428.86 and a 12-month high of $576.94.

Mastercard Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, February 7th. Shareholders of record on Thursday, January 9th will be given a $0.76 dividend. This represents a $3.04 dividend on an annualized basis and a dividend yield of 0.55%. This is a positive change from Mastercard’s previous quarterly dividend of $0.66. The ex-dividend date is Friday, January 10th. Mastercard’s dividend payout ratio is presently 23.00%.

Analysts Set New Price Targets

A number of equities analysts have weighed in on MA shares. Susquehanna upped their target price on Mastercard from $605.00 to $670.00 and gave the company a “positive” rating in a report on Friday. Raymond James reiterated an “outperform” rating and issued a $640.00 target price (up from $614.00) on shares of Mastercard in a report on Friday. JPMorgan Chase & Co. lifted their price target on shares of Mastercard from $590.00 to $610.00 and gave the company an “overweight” rating in a research report on Friday. Royal Bank of Canada increased their price target on Mastercard from $572.00 to $650.00 and gave the stock an “outperform” rating in a report on Friday. Finally, Monness Crespi & Hardt raised shares of Mastercard from a “neutral” rating to a “buy” rating and set a $640.00 target price on the stock in a research report on Friday. Four analysts have rated the stock with a hold rating, twenty-three have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $595.64.

Mastercard declared that its board has approved a share buyback plan on Tuesday, December 17th that authorizes the company to buyback $12.00 billion in outstanding shares. This buyback authorization authorizes the credit services provider to purchase up to 2.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

Mastercard Company Profile

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; and commercial credit, debit, and prepaid payment products and solutions.