Mastercard (MA) and Wells Fargo (WFC) have experienced a significant boost in their stock prices alongside the broader market. Notably, a director serving on the boards of both companies was among the buyers.
Stock Performances
Since October 27, when the S&P 500 entered correction territory, Mastercard stock is up by 8.9%, while Wells Fargo stock has surged by 9.2%. Looking at the bigger picture, Wells Fargo has recorded a 2.5% increase in 2023, while Mastercard boasts a solid growth of 14%.
Strong Financial Results
Wells Fargo reported better-than-expected earnings and revenue in the past month, contributing to its upward trajectory in the market. Similarly, Mastercard exceeded expectations with its October 26 report, thanks to a surge in international travel spending.
Director's Stock Purchase
Richard K. Davis, a member of both companies' board of directors, recently purchased shares of Mastercard and Wells Fargo. According to filings with the Securities and Exchange Commission, Davis acquired 1,000 Mastercard shares for $390,960 ($390.96 per share) and 3,500 Wells Fargo shares for $144,270 ($41.22 per share). As a result, Davis now holds 9,743 Mastercard shares and 4,244 Wells Fargo shares.
Insider Trading Significance
Davis' purchase is notable as it marks the first open-market stock purchase of Mastercard by an insider since 2020. Additionally, it is the first open-market purchase of Wells Fargo common shares by an insider since November of last year. Neither Mastercard nor Wells Fargo provided any comments on the matter, and a representative from Wells Fargo declined to comment on Davis' behalf.
Background Information
Davis served as the CEO of U.S. Bancorp (USB) between 2007 and 2017. He also held the position of CEO at Make-A-Wish America from January 2019 until his retirement in November of last year.
