Mastercard stock: buy or sell?
Updated on:
March 27th, 2020
2
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. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.Currently, Mastercard stock doesn't match any of these trading strategies, so our recommendation is not to buy.
| Buy setup | Elegible |
|---|---|
| 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?
Banks and financial institutions publish stock ratings everyday.
Unfortunately, we couldn't detect any rating for MA stock for the last 30 days.Mastercard stock analysis
Daily outlook
Mastercard shares plunged -5.90% to $247.65 yesterday.
Mastercard shares plunged -5.90% to $247.65 yesterday. Since last Mar/9 when MA stock price broke down the SMA200d line, it slid $-39.36 per share (-13.71%). Since last December when SMA50d and SMA100d crossed up, MA price slipped $-38.44 per share (-13.44%). On Feb/20, MA hit a new all time high, pushing higher than on Feb 19th tops. Check different trading setups that use ATHs as triggers.
Weekly outlook
After sliding a chilling -27.71% in a week last week, Mastercard closed this week at $247.65 and climbed an extraordinary 17.14%. This week broke a red streak of 4 weeks.
The support failed to resist and MA dropped deeper. Not so far away is the last all-time high Mastercard marked by mid February, but since then it dropped a 28.68%. Since price and 40-weeks moving average lines crossed down early March, MA fell $-39.36 per share (-13.71%). Trading stocks that are under the 40-weeks (that is, 200-days) moving average mark is not recommended by many experts, as it indicates that the stock has not enough institutional support.
Mastercard stock price history
Mastercard IPO was on May 25th, 2006 at $3.03 per share1. Since then, MA stock surged a 8,073.30%, with a yearly average of 621.00%. If you had invested $1,000 in Mastercard stock in 2006, it would worth $80,733.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Mastercard stock historical price chart
MA stock reached all-time highs on February/20 with a price of $347.25.
Mastercard stock price target
How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we have not detected any price target for Mastercard stock by any trusted analyst.Financials and fundamental analysis
Earnings date and Earnings per Share
After 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 |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 1.09 | n/a |
| 2017-Q3 | 2017-10-31 | 1.23 | 1.34 | 8.9% |
| 2017-Q4 | 2018-02-01 | 1.12 | 1.14 | 1.8% |
| 2018-Q1 | 2018-05-02 | 1.26 | 1.5 | 19.0% |
| 2018-Q2 | 2018-07-26 | 1.53 | 1.66 | 8.5% |
| 2018-Q3 | 2018-10-30 | 1.68 | 1.78 | 6.0% |
| 2018-Q4 | 2019-01-31 | 1.53 | 1.55 | 1.3% |
| 2019-Q1 | 2019-04-30 | 1.67 | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
In 2018, Mastercard annual sales boosted an exceptional 19.63% to $14,950.00 million USD from $12,497.00 marked in 2017. In line, its earnings margin (compared to revenues) rose to 39.19%, that is $5,859.00 million. Mastercard presents anual results in December, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Mastercard TTM sales up to March 2019 were $15,259.00 and earnings $6,229.00 M USD. When comparing this TTM figures with the last reported annuality, we can review Mastercard business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, inched a slightly good 2.07%. Likewise, profit margin (net income/sales) stepped up at 39.19%.| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 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 results
Mastercard reported $3,889.00 million in sales for 2019-Q1, a 2.15% up compared to previous quarter. Reported quarter income marked $1,862.00 million with a profit margin of 47.88%. Profit margin climbed a 24.26% compared to previous quarter when profit margin was 23.61%. When comparing sales to same quarter last year, Mastercard sales marked a shining increase and escalated a 8.63%.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 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 ownership
When you are planning to invest in shares of a company, it's always worth to check its ownership structure.Mastercard shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 11.29% of all shares.
In case of Mastercard stock, 77.93% 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 following table shows ownership data compared to other related companies:
| MA | |
|---|---|
| Market cap | $247.0 B |
| Total shares | 997.5 M |
| Float shares | 992.8 M |
| - Institutional holdings (%) | 77.9% |
| - Insider holdings (%) | 11.3% |
| Shares in short selling | 0.0% |
Mastercard summary
| Friday, March 27th, 2020 | |
|---|---|
| Open | $250.24 |
| Close | $247.65 |
| Day range | $244.70 - $256.07 |
| Previous close | $263.18 |
| Session gain | -5.90% |
| Average true range | $24.44 |
| 50d mov avg | $297.36 |
| 100d mov avg | $294.28 |
| 200d mov avg | $283.38 |
| Daily pattern | lt03a |
| Weekly pattern | lt06c |
Mastercard performance
To measure stock performance is always good to benchmark with competitors or related stocks. We compared Mastercard against in the following table:| Stock | 3m | 6m | 12m |
|---|---|---|---|
| MAMastercard | -17.54% | -7.75% | 5.72% |
Mastercard competitors
Unfortunately, we could not find any public company that could be defined as Mastercard competitor. This doesn't mean Mastercard does not have any competitor in the market, it's just we could not detected it.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