Mastercard Foundation, a significant shareholder in Mastercard Inc (NYSE:MA), has recently sold a portion of its holdings in the company. On June 24, 2024, the foundation sold 131,000 shares of Class A common stock at an average price of $459.4631 per share, resulting in a total transaction value of approximately $60.19 million.
The sale was disclosed in a regulatory filing with the Securities and Exchange Commission (SEC). Following the transaction, the Mastercard Foundation's remaining stake in the company consists of 92,426,308 shares of Mastercard's Class A common stock. It's worth noting that Mastercard Foundation Asset Management Corp, a wholly owned subsidiary of Mastercard Foundation, manages the investments for the shares directly held by the foundation.
Mastercard Foundation Asset Management Corp has clarified that, although it is the investment manager for these shares, it disclaims any pecuniary interest in them. This statement was included in the footnotes of the SEC filing, emphasizing the administrative role of the asset management corporation in handling the foundation's investments.
The transaction reflects a significant movement in Mastercard Inc's stock by one of its major shareholders. Investors often pay close attention to such sales as they can provide insights into the sentiment of large stakeholders in a company.
Mastercard Inc, with its headquarters in Purchase, New York, is a leading global payments & technology company that connects consumers, businesses, merchants, issuers, and governments around the world.
In other recent news, Mastercard Inc. held its Annual Meeting of Stockholders, during which shareholders re-elected all director nominees and approved the company's executive compensation. However, all shareholder proposals, including requests for transparency in lobbying and a report on gender-based compensation gaps, were rejected. In a separate development, Mastercard has agreed to collaborate with The Payment & Clearing Association of China on a proposal to reduce bank card transaction fees from the current range of 2-3% to 1.5%.
Mastercard has also declared a quarterly cash dividend of 66 cents per share, underscoring its commitment to providing value to its shareholders. Notably, Barclays (LON:BARC) has maintained an Overweight rating on Mastercard. Concurrently, Mastercard is set to face additional lawsuits in the UK over merchant fees and is supporting calls for global standards in trading tokenized assets on blockchains. These are recent developments that the company is navigating. The information provided is based on press release statements and filings with the Securities and Exchange Commission.
InvestingPro Insights
As Mastercard Foundation adjusts its stake in Mastercard Inc (NYSE:MA), investors are closely monitoring the financial health and market performance of the payment giant. According to real-time data from InvestingPro, Mastercard boasts a substantial market capitalization of $424.79 billion, reflecting its significant presence in the financial services industry.
InvestingPro Tips suggest that Mastercard has raised its dividend for 12 consecutive years, indicating a strong commitment to returning value to shareholders. Additionally, the company has maintained dividend payments for 19 consecutive years, showcasing its financial stability and investor-friendly approach. With a dividend yield of 0.58% as of the last recorded dividend date, and a 15.79% dividend growth in the last twelve months as of Q1 2024, Mastercard demonstrates a reliable income stream for dividend-focused investors.
The data also reveals that Mastercard is trading at a high earnings multiple, with a P/E ratio of 36.27 and an adjusted P/E ratio of 35.16 for the last twelve months as of Q1 2024. This could suggest that the stock is priced optimistically relative to its near-term earnings growth. However, the company's robust return on assets of 29.05% during the same period underscores its efficiency in generating profits from its asset base.
For investors seeking further insights and analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/MA. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore a total of 11 additional tips that delve deeper into Mastercard's financial metrics and market position.
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