The Czech National Bank has strengthened its position in Mastercard Incorporated (NYSE: MA) by increasing its holdings by 5.7% during the third quarter of 2023. According to HoldingsChannel.com, the bank now owns 209,657 shares of the credit services provider after purchasing an additional 11,387 shares during this period. Mastercard now represents 0.8% of the Czech National Bank’s investment portfolio, making it the bank’s 16th largest holding, valued at approximately $119,255,000.
Several other institutional investors have also made changes to their stakes in Mastercard. LGT Financial Advisors LLC established a new position in the company during the second quarter, valued at around $25,000. Family Legacy Financial Solutions LLC acquired shares worth $26,000, while Flaharty Asset Management LLC purchased shares valued at $27,000. Evolution Wealth Management Inc. and IMG Wealth Management Inc. also added new positions in the second quarter, valued at $29,000 and $31,000, respectively. Overall, institutional investors hold 97.28% of Mastercard’s stock.
Analyst Ratings and Stock Performance
Recent research from various firms has produced a range of ratings for Mastercard. Morgan Stanley has set a price objective of $665.00 with an “overweight” rating as of October 31, 2023. Meanwhile, Truist Financial adjusted its target price from $638.00 to $630.00 and continues to recommend the stock as a “buy.” UBS Group increased its price target from $690.00 to $700.00, while The Goldman Sachs Group reaffirmed a “buy” rating with a target price of $713.00. Weiss Ratings also maintains a “buy (b)” rating for Mastercard.
Currently, five analysts have rated Mastercard with a “Strong Buy,” while twenty-two others have assigned a “Buy” rating, and three have opted for a “Hold” rating. MarketBeat data indicates an average rating of “Buy” with a consensus target price of $654.81.
As of Thursday, Mastercard shares opened at $564.92. The company boasts a market capitalization of $507.30 billion, a price-to-earnings ratio of 36.12, and a debt-to-equity ratio of 2.40. The stock has fluctuated significantly over the past year, with a 52-week low of $465.59 and a 52-week high of $601.77.
Quarterly Earnings and Dividend Announcement
In its latest quarterly earnings report released on October 30, 2023, Mastercard reported earnings per share (EPS) of $4.38, exceeding analysts’ expectations of $4.31 by $0.07. The company generated revenue of $8.60 billion, surpassing estimates of $8.53 billion. The net profit margin stood at 45.28%, with a remarkable return on equity of 202.03%. This represents a 16.7% increase in revenue compared to the same quarter last year, where the EPS was $3.89.
Additionally, Mastercard has announced an increase in its quarterly dividend, which will be paid on February 9, 2024. Shareholders of record on January 9, 2024 will receive a dividend of $0.87, marking an increase from the previous quarterly dividend of $0.76. This results in an annualized dividend of $3.48 and a dividend yield of 0.6%, with a payout ratio of 19.44%.
Mastercard Incorporated operates as a global technology company that provides transaction processing and payment-related products and services across various sectors. Its offerings include integrated products and value-added services for account holders, financial institutions, merchants, and governments, among others. As Mastercard continues to grow, its strategic investments and positive quarterly performance highlight its significant role in the global financial landscape.
