Fundsmith LLP Makes New $639.46 Million Investment in Mastercard Incorporated $MA

Fundsmith LLP purchased a new stake in Mastercard Incorporated (NYSE:MA) during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 1,245,051 shares of the credit services provider’s stock, valued at approximately $639,458,000. Mastercard comprises approximately 4.7% of Fundsmith LLP’s investment portfolio, making the stock its 6th largest position. Fundsmith LLP owned approximately 0.14% of Mastercard as of its most recent filing with the SEC.

Other hedge funds have also modified their holdings of the company. Riggs Asset Managment Co. Inc. raised its holdings in Mastercard by 20.0% in the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 108 shares of the credit services provider’s stock valued at $61,000 after buying an additional 18 shares during the period. Castle Rock Wealth Management LLC increased its position in shares of Mastercard by 2.8% during the fourth quarter. Castle Rock Wealth Management LLC now owns 695 shares of the credit services provider’s stock valued at $387,000 after acquiring an additional 19 shares during the last quarter. Athena Wealth Management LLC increased its position in shares of Mastercard by 3.8% during the second quarter. Athena Wealth Management LLC now owns 514 shares of the credit services provider’s stock valued at $264,000 after acquiring an additional 19 shares during the last quarter. Novem Group lifted its holdings in shares of Mastercard by 0.4% in the 2nd quarter. Novem Group now owns 4,680 shares of the credit services provider’s stock worth $2,404,000 after acquiring an additional 19 shares during the last quarter. Finally, Vista Capital Partners Inc. lifted its holdings in shares of Mastercard by 4.5% in the 2nd quarter. Vista Capital Partners Inc. now owns 444 shares of the credit services provider’s stock worth $228,000 after acquiring an additional 19 shares during the last quarter. 97.28% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, insider Sandra A. Arkell sold 200 shares of Mastercard stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $540.00, for a total value of $108,000.00. Following the completion of the transaction, the insider owned 3,322 shares in the company, valued at $1,793,880. The trade was a 5.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael Miebach sold 16,628 shares of the business’s stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of $567.68, for a total transaction of $9,439,383.04. Following the transaction, the chief executive officer owned 115,921 shares of the company’s stock, valued at $65,806,033.28. This trade represents a 12.54% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 71,357 shares of company stock worth $40,637,262 over the last three months. Company insiders own 0.09% of the company’s stock.

Mastercard Price Performance

Shares of MA opened at $595.51 on Monday. The company has a market cap of $521.67 billion, a P/E ratio of 32.76, a PEG ratio of 1.79 and a beta of 0.71. Mastercard Incorporated has a fifty-two week low of $464.52 and a fifty-two week high of $601.62. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 3.96. The firm’s 50 day moving average price is $549.15 and its 200 day moving average price is $519.51.

Mastercard (NYSE:MA) last posted its quarterly earnings results on Thursday, July 30th. The credit services provider reported $5.04 EPS for the quarter, topping the consensus estimate of $4.77 by $0.27. Mastercard had a net margin of 46.34% and a return on equity of 239.99%. The business had revenue of $9.28 billion during the quarter, compared to the consensus estimate of $9.08 billion. During the same quarter in the previous year, the firm posted $4.15 earnings per share. The company’s quarterly revenue was up 14.1% compared to the same quarter last year. On average, research analysts forecast that Mastercard Incorporated will post 19.86 earnings per share for the current fiscal year.

Mastercard Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Thursday, July 9th were paid a dividend of $0.87 per share. This represents a $3.48 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Thursday, July 9th. Mastercard’s payout ratio is presently 19.14%.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. The Goldman Sachs Group reaffirmed a “buy” rating and set a $701.00 price objective on shares of Mastercard in a research report on Thursday, July 30th. Cantor Fitzgerald upped their price target on Mastercard from $650.00 to $695.00 and gave the stock an “overweight” rating in a research note on Monday, August 3rd. Keefe, Bruyette & Woods raised their price target on Mastercard from $665.00 to $685.00 and gave the stock an “outperform” rating in a research report on Friday, July 31st. KeyCorp lifted their price objective on Mastercard from $670.00 to $680.00 and gave the company an “overweight” rating in a research note on Friday, July 31st. Finally, Dbs Bank upgraded Mastercard to a “moderate buy” rating in a report on Friday, August 21st. Five equities research analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Buy” and an average target price of $664.71.

Mastercard News Summary

Here are the key news stories impacting Mastercard this week:

• Positive Sentiment: Mastercard and QNB Group processed Syria’s first international card transaction in more than 15 years. The milestone marks the reopening and modernization of Syria’s international payments infrastructure following the lifting of certain U.S. restrictions. Although the near-term financial contribution is likely to be small, the development creates a potential new market and demonstrates Mastercard’s ability to support payments expansion. Syria marks first international card transaction in more than 15 years with Mastercard and QNB Group
• Positive Sentiment: Analysts have given Mastercard a consensus “Buy” rating. Continued Wall Street support adds to the bullish backdrop, though the rating itself may already be reflected in the share price. Mastercard Incorporated Given Consensus Rating of Buy by Analysts
• Positive Sentiment: Pershing Square founder Bill Ackman added Mastercard to the hedge fund’s portfolio. The purchase may improve investor sentiment by signaling confidence from a prominent long-term investor, although it does not change Mastercard’s operating outlook. Bill Ackman Just Made His Biggest Portfolio Overhaul in Years
• Positive Sentiment: A partnership with Klook targets growing travel and experiences spending across Asia Pacific. Mastercard cardholder benefits and additional travel-related payment touchpoints could support transaction volume in a high-growth region. Klook and Mastercard collaborate to enhance travelers’ experiences across Asia Pacific
• Neutral Sentiment: Mastercard will participate in the Goldman Sachs Communacopia + Technology Conference on September 10, where CFO Ling Hai is scheduled to speak. Investors may look for updates on growth, margins and capital allocation, but no new financial information was provided. Mastercard to Participate in Upcoming Investor Conference
• Neutral Sentiment: Mastercard’s name appears as a supporter of an XRPL/Ripple hackathon, but reports caution that the sponsorship does not represent a new cryptocurrency partnership or major product launch. Mastercard’s Name Is on the Ripple Hackathon, But Don’t Get Ahead of Yourself

Mastercard Company Profile

Mastercard Incorporated is a global payments technology company that operates a network connecting consumers, financial institutions, merchants, governments and businesses in more than 200 countries and territories. The company facilitates electronic payments and transaction processing for credit, debit and prepaid card products carrying the Mastercard brand, while also providing a range of payment-related services to issuers, acquirers and merchants. Its technology and network enable authorization, clearing and settlement of payments and support a broad set of use cases including point-of-sale, e-commerce and mobile payments.

Beyond core transaction processing, Mastercard offers a suite of value-added services such as fraud and risk management, identity and authentication tools, tokenization and digital wallet support, cross-border and commercial payment solutions, and data analytics and consulting services for merchants and financial partners.