Oak Family Advisors LLC Reduces Stake in Mastercard Incorporated

During the fourth quarter, Oak Family Advisors LLC decreased its ownership of shares in Mastercard Incorporated (NYSE:MA - Free Report) by 19.3%, as noted in the latest report filed with the Securities and Exchange Commission. After this reduction, the institutional investor holds a total of 5,649 shares in the credit services company, following the sale of 1,354 shares during the quarter. Mastercard represents roughly 1.1% of Oak Family Advisors LLC's overall portfolio, positioning it as the firm's 29th largest investment. The value of Oak Family Advisors LLC's stake in Mastercard was approximately $2,975,000 according to its latest SEC filing.

Several other institutional investors have also modified their positions in Mastercard recently. For instance, State Street Corp increased its stake by 0.7% in the third quarter, bringing its total ownership to 35,288,912 shares, valued at around $17.43 billion, following an acquisition of an additional 257,312 shares. Similarly, FMR LLC raised its holdings by 3.4%, owning 21,355,081 shares worth about $10.55 billion after buying 700,769 additional shares. Geode Capital Management LLC saw a 2.5% increase in its holdings during the same period, now owning 18,375,053 shares valued at $9.04 billion after acquiring 453,773 shares. The International Assets Investment Management LLC reported a staggering 120,665.3% growth in its stake by adding 8,035,099 shares, elevating its total to 8,041,758 shares valued at approximately $3.97 billion. Lastly, Franklin Resources Inc. increased its ownership by 4.2%, holding 7,501,814 shares valued at $3.8 billion after securing an additional 304,293 shares. Together, hedge funds and institutional investors currently own 97.28% of Mastercard stock.

Analysts Optimistic About Mastercard's Future

A number of financial analysts have expressed positive outlooks regarding Mastercard's stock. In a recent research note, Piper Sandler reaffirmed an "overweight" rating and adjusted its target price for Mastercard shares from $591.00 to $635.00. Royal Bank of Canada followed suit by revising their target price from $572.00 to $650.00, designating the stock with an "outperform" rating. Monness Crespi & Hardt also upgraded Mastercard from a "neutral" to a "buy" rating with a new target price of $640.00. BMO Capital Markets raised their target price from $550.00 to $565.00, maintaining an "outperform" rating. Meanwhile, Morgan Stanley reduced its price target from $654.00 to $644.00, but kept an "overweight" rating on the stock. In total, four equity research analysts have assigned a hold rating, while twenty-three have rated the stock as a buy and one as a strong buy. According to MarketBeat.com, Mastercard holds a consensus rating of "Moderate Buy" with a consensus price target of $595.64.

Mastercard's Recent Performance

As of Monday, Mastercard's stock opened at $555.63. Financial metrics indicate a debt-to-equity ratio of 2.68, a current ratio of 1.03, and a quick ratio of 1.29. The stock's fifty-day moving average is $528.28, while the 200-day moving average stands at $501.43. Mastercard's shares have hit a one-year low of $428.86 and a high of $576.94. The company boasts a market capitalization of about $509.97 billion, a PE ratio of 40.00, and a price-to-earnings growth ratio of 2.23, with a beta of 1.10.

Dividend Increase and Stock Buyback Announcement

Mastercard recently announced an increase in its quarterly dividend, set to be paid on February 7th, to investors of record on January 9th, with each share earning a dividend of $0.76. This reflects an annualized dividend of $3.04, equating to a dividend yield of 0.55%. The ex-dividend date is established for January 10th, marking an increase from the prior dividend payout of $0.66. Additionally, Mastercard's board approved a stock buyback program on December 17th, which permits the company to buy back up to $12 billion of its outstanding shares, representing up to 2.5% of its stock. Such buyback actions typically indicate that the company believes its shares are undervalued.

About Mastercard Incorporated

Mastercard Incorporated functions as a technology company providing transaction processing and various payment-related products and services on a global scale. It offers comprehensive integrated products and value-added services to account holders, merchants, financial institutions, and businesses. These services include programs that allow issuers to provide consumer credits, payment products that facilitate access to funds, and various commercial payment solutions.

Conclusion

With significant adjustments in its shareholder composition and positive outlooks from analysts, Mastercard appears to remain a robust player in the financial services market. The combination of its increasing dividends and stock buyback plans suggests a proactive approach to enhancing shareholder value.

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