Violich Capital Management Cuts Mastercard Stake by 1.9%

Violich Capital Management Inc. has reduced its stake in Mastercard Incorporated (NYSE: MA) by 1.9% during the second quarter of 2023. According to the firm’s most recent 13F filing with the Securities and Exchange Commission (SEC), Violich owned 9,098 shares after selling 173 shares during the quarter. Mastercard now represents approximately 0.7% of Violich’s total holdings, making it the firm’s 29th largest investment. As of the latest reporting period, the value of these holdings was approximately $5.1 million.

A number of other institutional investors have also recently adjusted their positions in Mastercard. Family Legacy Financial Solutions LLC acquired a new stake in the company worth about $26,000 during the second quarter. Similarly, Flaharty Asset Management LLC purchased shares worth approximately $27,000, while Keystone Global Partners LLC and Hughes Financial Services LLC bought stakes valued at approximately $31,000 and $34,000, respectively. Notably, 97.28% of Mastercard’s stock is currently held by hedge funds and institutional investors.

Insider Trading Activity

In related news, Mastercard’s Chief Financial Officer, J. Mehra Sachin, sold 17,263 shares of the company on September 2, 2023. The shares were sold at an average price of $591.00, resulting in a total transaction value of approximately $10.2 million. Following this sale, Sachin held 31,234 shares, valued at around $18.5 million. This sale represents a significant decrease of 35.60% in his position. The details of the transaction were disclosed in a filing with the SEC.

Corporate insiders currently own a mere 0.09% of Mastercard’s stock, reflecting the predominance of institutional ownership in the company.

Recent Financial Performance

Mastercard’s stock recently experienced a rise of 2.1%. The company last reported its quarterly earnings on July 31, 2023, revealing earnings per share (EPS) of $4.15, which surpassed analysts’ expectations of $4.05 by $0.10. The firm achieved a remarkable return on equity of 200.01% and a net margin of 44.93%. Total revenue for the quarter reached $8.13 billion, exceeding the consensus estimate of $7.95 billion. This performance marks a 16.8% increase in revenue compared to the same quarter last year.

Looking ahead, analysts forecast that Mastercard will post an EPS of $15.91 for the current year.

Dividend and Analyst Ratings

Mastercard has also announced a quarterly dividend of $0.76, scheduled for payment on November 7, 2023. Shareholders on record by October 9, 2023, will receive this dividend, which equates to an annualized dividend of $3.04 and a yield of 0.5%. The company’s current payout ratio stands at 20.50%.

Several research analysts have recently provided updates on their ratings for Mastercard. TD Cowen reaffirmed a “buy” rating with a target price of $645.00 on August 11, 2023. Meanwhile, Seaport Res Ptn upgraded the stock from “hold” to “strong-buy” on July 14, 2023. KeyCorp and Morgan Stanley both raised their target prices to $660.00 and $661.00, respectively, while Royal Bank Of Canada adjusted its target from $650.00 to $656.00.

Overall, Mastercard has received a consensus rating of “buy” from analysts, with a consensus price target of $634.04.

Mastercard Incorporated is a global technology company that specializes in transaction processing and payment-related services, catering to a wide range of clients, including businesses, financial institutions, and governments. As the company continues to expand its offerings, it remains a key player in the payment services sector.