PineStone Asset Management Inc. has reduced its holdings in Mastercard Incorporated by 1.3% during the third quarter of 2023, according to the firm’s latest 13F filing with the Securities and Exchange Commission (SEC). The asset management company now owns 1,585,690 shares of the credit services provider after selling 21,517 shares during the quarter, which represents 5.6% of its overall investment portfolio, making Mastercard its seventh largest holding.
As of the end of the most recent reporting period, PineStone’s stake in Mastercard was valued at approximately $901.96 million. This adjustment is part of a wider trend among institutional investors, with many hedge funds also altering their positions in the company. For example, LGT Financial Advisors LLC acquired a new stake valued at about $25,000 in the second quarter, while Family Legacy Financial Solutions LLC invested approximately $26,000 during the same timeframe. Other notable investments include Flaharty Asset Management LLC, which purchased shares worth around $27,000, and IMG Wealth Management Inc., which acquired shares valued at approximately $31,000.
Institutional investors and hedge funds collectively own 97.28% of Mastercard’s stock, indicating strong institutional confidence in the company.
Mastercard’s Recent Financial Performance
Mastercard stock opened at $579.61 on Friday, reflecting its recent price fluctuations. The stock’s 50-day moving average stands at $555.62, while its 200-day moving average is at $565.67. The company boasts a market capitalization of $520.49 billion with a P/E ratio of 37.06 and a PEG ratio of 2.28. Its current financial ratios include a debt-to-equity ratio of 2.40, a quick ratio of 1.12, and a current ratio of 1.12. Over the past year, Mastercard has seen a low of $465.59 and a high of $601.77.
In addition to its stock performance, Mastercard recently announced a quarterly dividend of $0.87, set to be paid on February 9, 2024. Investors of record on January 9, 2024 will receive this dividend, which is an increase from the previous quarterly dividend of $0.76. This raises its annualized dividend to $3.48, reflecting a yield of 0.6%. The current dividend payout ratio stands at 22.25%, highlighting the company’s commitment to returning value to shareholders.
Analyst Ratings and Future Outlook
Mastercard has garnered attention from multiple analysts recently. The Goldman Sachs Group reaffirmed a “buy” rating with a target price of $713.00 in a report dated October 30, 2023. Similarly, Compass Point set a price target of $620.00 and issued a “neutral” rating on October 31, 2023. Other firms, such as Truist Financial, lowered their target price from $638.00 to $630.00 but maintained a “buy” rating.
Overall, five equities research analysts rated Mastercard with a Strong Buy, while twenty-one assigned a Buy rating, and three issued a Hold rating. According to data from MarketBeat, the company has an average rating of “Buy” with an average price target of $657.48.
Mastercard Incorporated operates as a global payments technology company, facilitating electronic payments and transaction processing for credit, debit, and prepaid card products. The firm connects consumers, financial institutions, merchants, and governments across more than 200 countries, reinforcing its critical role in the global financial ecosystem.
