Mastercard stock: buy or sell?
November 19th, 2019
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally.
Should I buy Mastercard stock?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Having a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
None of our preferred buy setups matches with Mastercard stock situation right now, hence this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Mastercard stock a buy?
Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness.At Stocks2.com, we detected 15 ratings published for MA stock in the last month. The general sentiment of these ratings is bullish for MA stock, with 14 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-7-10||Wells Fargo & Co||n/a||Outperform|
Mastercard stock analysis
Mastercard stepped up a nice 1.58% and closed at $285.31.
Shares of Mastercard stepped up a nice 1.58% and closed at $285.31. MA shows a sign of strength in the short-term after finally breaking out above $282.24 on Nov 4th and marking a new rising bottom. On Nov/8 MA price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock. On September, MA hit a new all time high, pushing higher than on September tops. Check different trading setups that use ATHs as triggers.
Shares of Mastercard ended this week at $285.31 and stepped up a good 1.61%.
Mastercard stock just marked a top under its last top. Athought it's not something to really worring right now, investors in MA should be on alert as this could be a warning for future complications. Loosing its previous bottom at would confirm the downtrend path. Not so far away is the last price record Mastercard marked early September. Since late March when SMA20w and SMA40w crossed up, MA price gained $55.43 per share (24.11%). Since mid January when MA stock price broke up the SMA40w line, it gained $90.16 (46.20%).
Mastercard stock price history
Mastercard IPO was on May 25th, 2006 at $3.76 per share1. Since then, MA stock surged a 7,488.00%, with a yearly average of 576.00%. If you had invested $1,000 in Mastercard stock in 2006, it would worth $74,880.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Mastercard stock historical price chart
MA stock reached all-time highs on September with a price of $293.33.
Mastercard stock price target is $314.40How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' MA stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we found 14 price predictions for Mastercard stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-9-16||Morgan Stanley||Raises Target||$291.00||$315.00||8.2%|
|2019-9-13||SunTrust Banks||Raises Target||$310.00||$325.00||4.8%|
|2019-8-1||UBS Group||Raises Target||$300.00||$312.00||4%|
|2019-7-31||Raymond James||Raises Target||$300.00||$308.00||2.7%|
|2019-7-18||Raymond James||Raises Target||$284.00||$300.00||5.6%|
|2019-7-11||Morgan Stanley||Raises Target||$269.00||$291.00||8.2%|
|2019-7-11||Deutsche Bank||Raises Target||$267.00||$330.00||23.6%|
|2019-7-10||Wells Fargo & Co||Reiterates||$285.00||$305.00||7%|
Financials and fundamental analysis
Earnings date and Earnings per ShareAfter publishing its last earnings report on April, Mastercard . As soon as we get its actual EPS from the earnings report, we will extend this review.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual turnover report draw an outstanding increase of 19.63% to $14,950.00 million USD. When comparing 2018 vs 2017, aligned with this, profit margin (that is, the net income divided by revenues) soared a 7.86% to 39.19%. To have an up to date picture of the financial situation of Mastercard, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Mastercard TTM sales up to March 2019 were $15,259.00 and earnings were $6,229.00 million USD. If we compare this TTM figures with the last reported annuality, we can review Mastercard business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, gained a slightly good 2.07%. In the same way, profit margin (net income/sales) appreciated at 39.19%.
|2013||$8,340 M||-||$3,120 M37.4%||-|
|2014||$9,473 M||13.59%||$3,617 M38.2%||15.93%|
|2015||$9,667 M||2.05%||$3,808 M39.4%||5.28%|
|2016||$10,776 M||11.47%||$4,059 M37.7%||6.59%|
|2017||$12,497 M||15.97%||$3,915 M31.3%||-3.55%|
|2018||$14,950 M||19.63%||$5,859 M39.2%||49.66%|
|TTM||$15,259 M||2.07%||$6,229 M40.8%||6.32%|
Quarterly financial resultsMastercard reported $3,889.00 million in revenues for 2019-Q1, a 2.15% up compared to previous quarter. Reported quarter earnings marked $1,862.00 million with a profit margin of 47.88%. Profit margin skyrocketed a 24.26% compared to previous quarter when profit margin was 23.61%. When comparing turnover to same quarter last year, Mastercard sales marked a pretty good gain and escalated a 8.63%.
|2017-Q2||$3,050 M||-||$1,180 M38.7%||-|
|2017-Q3||$3,400 M||11.48%||$1,430 M42.1%||21.19%|
|2017-Q4||$3,312 M||-2.59%||$227 M6.9%||-84.13%|
|2018-Q1||$3,580 M||8.09%||$1,492 M41.7%||557.27%|
|2018-Q2||$3,665 M||2.37%||$1,569 M42.8%||5.16%|
|2018-Q3||$3,898 M||6.36%||$1,899 M48.7%||21.03%|
|2018-Q4||$3,807 M||-2.33%||$899 M23.6%||-52.66%|
|2019-Q1||$3,889 M||2.15%||$1,862 M47.9%||107.12%|
Mastercard ownershipWhen you are planning to invest in shares of a stock, it's worth to check its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Mastercard, 11.17% of all outstanding shares are owned by its staff.
In case of Mastercard stock, 78.00% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for MA stock account 0.00%, no big difference from last month.
For a better context understanding, the next table shows ownership data compared to other related stocks:
|Market cap||$284.6 B||$868.9 B||$84.2 B||$277.5 B||$66.0 B|
|Total shares||997.5 M||495.8 M||614.6 M||7,300.0 M||855.6 M|
|Float shares||991.1 M||417.4 M||611.6 M||7,300.0 M||313.2 M|
|- Institutional holdings (%)||78.0%||57.1%||92.3%||55.4%||35.2%|
|- Insider holdings (%)||11.2%||16.1%||0.6%||0.1%||63.7%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Tuesday, November 19th, 2019|
|Day range||$280.94 - $286.58|
|Average true range||$4.47|
|50d mov avg||$273.60|
|100d mov avg||$274.72|
|200d mov avg||$257.53|
Mastercard performancePerformance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For Mastercard, the benchmark is made against Amazon.com, Fidelity National Information Services, AT&T, T-Mobile US, Visa, Verizon Communications, WEX and Western Union.
Mastercard competitorsWe selected a few stocks to conform a list of Mastercard competitors to examine if you are interested in investing in MA:
- Amazon.com (AMZN)
- Fidelity National Information Services (FIS)
- AT&T (T)
- T-Mobile US (TMUS)
- Visa (V)
- Verizon Communications (VZ)
- WEX (WEX)
- Western Union (WU)
Latest Mastercard stock news
- Seeking AlphaVisa And Mastercard: 2 Stocks, 1 Superior Business ModelJuly 25, 2019
- Seeking AlphaMasterCard Is Ready To Capitalize On Cashless TrendJuly 19, 2019
- InvestorPlaceBuy Mastercard Stock as It Expands Its ReachJuly 16, 2019
- Seeking AlphaMastercard And Visa: A Side-By-Side ComparisonJune 3, 2019
- Seeking AlphaThere's No Stopping Mastercard's GrowthMay 29, 2019