King Luther Capital Management Corp has reduced its stake in Mastercard Incorporated, now holding a stock position valued at $93.93 million. According to the firm’s recent Form 13F filing with the Securities and Exchange Commission, the institutional investor trimmed its holdings by 0.7% during the second quarter, ending up with 167,160 shares after selling 1,218 shares.
This adjustment in Mastercard holdings comes amid activity from other institutional investors. For instance, Vanguard Group Inc. increased its stake in Mastercard by 0.5% in the first quarter, now owning 77,544,675 shares valued at approximately $42.5 billion after acquiring an additional 365,537 shares. Another significant player, Kingstone Capital Partners Texas LLC, established a new position in Mastercard during the second quarter valued at around $11.42 billion.
Additionally, Price T Rowe Associates Inc. raised its holdings by 4.7%, now owning 20,096,979 shares worth approximately $11.01 billion. Wellington Management Group LLP also made a substantial move, boosting its holdings by 38.6% to 13,526,118 shares valued at $7.41 billion. Meanwhile, Nuveen LLC acquired a new position valued at $4.24 billion in the first quarter. Overall, institutional investors and hedge funds now control 97.28% of Mastercard’s stock.
Recent Insider Transactions and Stock Performance
In related news, Mastercard’s Chief Financial Officer, J. Mehra Sachin, sold 17,263 shares on September 2, 2023, for an average price of $591.00, totaling $10.2 million. Following this sale, Sachin’s remaining shares are valued at approximately $18.46 million, representing a 35.6% decrease in ownership. Such insider transactions are closely monitored by investors and can influence market perceptions.
On October 30, 2023, Mastercard reported its earnings, announcing an earnings per share (EPS) of $4.38 for the quarter, surpassing the consensus estimate of $4.31 by $0.07. The company’s revenue reached $8.6 billion, exceeding analyst expectations of $8.53 billion, and reflecting a 16.7% increase year-over-year. Mastercard’s net margin stood at 44.93%, with a return on equity of 200.01%.
As of the latest trading session, Mastercard’s shares opened at $551.98, reflecting a slight decrease of 0.2%. The company maintains a market capitalization of $499 billion and has a PE ratio of 37.22.
Dividend Announcement and Company Overview
Recently, Mastercard declared a quarterly dividend of $0.76, which was paid on November 7, 2023, to stockholders of record as of October 9, 2023. This annualizes to $3.04, yielding approximately 0.6%, with a dividend payout ratio of 19.44%. Such dividends are indicative of the company’s stable financial position and commitment to returning value to shareholders.
Mastercard Incorporated, headquartered in the United States, offers transaction processing and payment-related services globally. The company provides a range of integrated products and solutions for account holders, merchants, and financial institutions, significantly contributing to its robust financial performance.
As Mastercard continues to navigate the evolving financial landscape, the adjustments made by institutional investors and recent financial results will likely play a crucial role in shaping its strategy for future growth.
