Mastercard stock: buy or sell
Updated on:
Apr 22nd, 2021
2
Mastercard stock brief
- After hitting new highs last Friday, Mastercard closed at $383.10 rising a 1.72%
- With the recent gains, Mastercard is approaching to new all-time highs again, that are now just 1.54% above the current price
- From the chart point view, price is drawing a scaled uptrend since last January with higher tops and higher bottoms. This uptrend marked a 22.78% gain
- Barclays and Morgan Stanley posted buy ratings for Mastercard on Tuesday, with an average target of $410.00
- 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?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $MA stock a buy?
In the current situation of Mastercard there is just one buy setup eligible:
Uptrend buy setup
Mastercard stock is in an uptrend since last January that so far has marked an amazing 23.00% gain. Price marked a pull back in this uptrend at $349.72 in mid-March, and since then it bounced up a 9.54%. Breaking out over $389.04 - it's last top - will be a good entry point if Mastercard resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $350.14
| Buy setup | Buy point | Stop loss | Risk |
| Uptrend buy setup | $389.04 | $350.14 | 10.00% |
Should I sell Mastercard stock?
"To sell or not to sell", if you are holding Mastercard shares?. Like when we have to buy shares, determining when is appropiate time to sell is not a haphazard decision, and we must adhere our own trading strategy. When selling, as well as buying, our strategies are very easy to use and are only applicable for selling stocks you already own, not for selling short $MA stock
A golden rule is that you should never mantain an operation that generates higher than expected losses by the time of purchase. The moment to sell shares must always be determined by the stop-loss (automatic or manual)
Is it time to sell Mastercard stock?
Currently, Mastercard stock doesn't match any of our preferred sell setups, so if you hold Mastercard stock and your operation is in profit probably is not time to sell now
Mastercard ratings
In the last month, 2 brokerage ratings were published for Mastercard. General sentiment is bullish, with 2 out of 2 publishing optimistic forecasts
| Brokerage firm | Rating |
|---|---|
| Apr 20th, 2021 | |
| Barclays | Buy |
| Morgan Stanley | Buy |
Mastercard stock analysis
Mastercard shares started an uptrend last January, and grew a gorgeous 22.78%. During this uptrend, the price provided some entry points on the breakouts. Latest low was in mid-March, when price bounced at $349.72. Now, the price trades in a consolidation between its last top ($389.04) and its last bottom ($349.72)
$MA at Highs
Last Friday, Mastercard reached new all-time highs (ATH) again at $389.10. Previous highs were in mid-March
SMAs overview
Supports and resistances
The current resistances are:
The current supports are:
Bollinger bands
Since the price surpassed the upper band on April 15, the price dropped by 1.10%. The price is moving near to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a bearish indicator, as price can trade in these levels for many days and weeks
Relative strength index
When the stays for so long below 70 and above 30, without indication of overbought and oversold, the indicator gets of little use, and we find ourselves in one of these situations.
Mastercard stock price history
Mastercard went public on May 25th, 2006 priced at $3.76 per share1. Since then, MA stock surged by 10,088.83%, with an average of 720.63% per year. If you had invested $1,000USD in Mastercard stock on the IPO, it would be valued $101,888.30 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Mastercard stock
Nobody can predict how much a stock will be priced in the future. Banks and financial organisations publish their analysis forecasting how a particular stock will performance in the future.
The following table shows the price predictions posted by financial institutions in the last month. Again, these estimates are not direct recommendations for small traders and should not be followed blindly.
The average price target for Mastercard stock calculated from the table below is $410.00. Mastercard closed at $383.10 on Wednesday, that is a 6.56% than the forecasted price.
| Brokerage firm | Price target |
|---|---|
| Apr 20th, 2021 | |
| Barclays | $380.00 → $402.00 |
| Morgan Stanley | $412.00 → $418.00 |
Earnings and financials
Mastercard ($MA) hosted the earnings call and presented the report last January. Mastercard presented earnings of $1.64 per share on sales of $4.1 billion. The consensus earnings estimate was $1.52 per share on revenue of $4.0 billion.
Same quarter one year ago, reported EPS was $1.96, so recently posted EPS is a decrease of -16.33%. Looking at sales, figures sliced a -6.66% compared to $44.1B same quarter a year ago.Mastercard ($MA) is hosting the Q1 earnings call next Wednesday. Market forecasts of $1.57, compared to Q4 that made $1.64.
Mastercard performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Mastercard ($MA) | 6.80% | 14.70% | 15.30% |
Disclaimer:
The opinions given in this article are personal and not recommendations for you to buy or sell stocks. The author of this article does not know the individual positions of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are expressed for education purposes onlyMastercard summary
| Wednesday, April 21st, 2021 | |
|---|---|
| Open | $378.59 |
| Close | $383.1 |
| Day range | $376.67 - $384.1 |
| Previous close | $376.63 |
| Session gain | 1.72% |
| Average true range | $8.37 |
| 50d mov avg | $362.93 |
| 100d mov avg | $349.44 |
| 200d mov avg | $337.77 |
| Earnings date | April 28th, 2021 |