Pinnacle Associates Ltd. has reduced its stake in Mastercard Incorporated (NYSE: MA) by 1.2% during the second quarter of 2023. According to HoldingsChannel.com, the institutional investor now owns 40,857 shares of the credit services provider after selling 496 shares during this period. Pinnacle Associates Ltd.’s holdings in Mastercard were valued at approximately $22.96 million at the end of the most recent quarter.
Several other institutional investors also adjusted their positions in Mastercard. ORG Partners LLC increased its stake by an impressive 73.2%, acquiring an additional 295 shares, bringing its total to 698 shares valued at $394,000. Similarly, Ethos Financial Group LLC raised its stake by 19.5% during the first quarter, now holding 3,174 shares worth $1.68 million after a purchase of 518 shares.
Curio Wealth LLC made a significant move by boosting its stake in Mastercard by an astounding 22,400%. It now holds 225 shares valued at $126,000 following the acquisition of 224 additional shares. Wheelhouse Advisory Group LLC also increased its stake by 4.4%, owning 1,336 shares valued at $751,000 after adding 56 shares. SeaBridge Investment Advisors LLC raised its stake by 4.3%, now holding 6,463 shares worth $3.63 million.
Institutional investors and hedge funds collectively own 97.28% of Mastercard’s stock, indicating strong institutional interest in the company.
In related news, Mastercard’s Chief Financial Officer, J. Mehra Sachin, sold 17,816 shares on August 19, 2023, for an average price of $586.89, totaling approximately $10.46 million. Following the transaction, Sachin’s remaining holdings dropped to 31,234 shares, valued at about $18.33 million, marking a 36.32% decrease in his position. This transaction was disclosed in a legal filing with the Securities and Exchange Commission.
Mastercard’s Stock Performance and Future Outlook
As of Friday, Mastercard shares opened at $554.26. The stock’s 50-day moving average stands at $577.34, while the 200-day moving average is $567.43. The company reported a debt-to-equity ratio of 2.41, a current ratio of 1.16, and a quick ratio of 1.16. Over the past year, Mastercard has experienced a low of $465.59 and a high of $601.77. The company’s market capitalization is approximately $501.05 billion, with a price-to-earnings ratio of 37.37 and a price-to-earnings-growth ratio of 2.27.
In its most recent 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 achieved a return on equity of 200.01% and a net margin of 44.93%. Mastercard’s revenue for the quarter reached $8.60 billion, surpassing the consensus estimate of $8.53 billion. This represents a 16.7% increase in revenue compared to the same quarter last year.
Analysts forecast an EPS of $15.91 for the current fiscal year, reflecting optimistic expectations for Mastercard’s performance.
Dividend Announcement
Mastercard has also announced a quarterly dividend of $0.76, which is set to be paid on November 7, 2023. Stockholders of record on October 9 will be eligible to receive this dividend. The ex-dividend date is also October 9. This dividend equates to an annualized payout of $3.04, representing a dividend yield of 0.5%. Currently, Mastercard’s dividend payout ratio stands at 20.50%.
Mastercard Incorporated operates as a global technology company, providing transaction processing and payment-related services across the United States and internationally. Its offerings include integrated products and value-added services for a wide range of clients, including financial institutions, merchants, and government entities, among others.
