Mastercard stock: buy or sell?

MA stock price: $285.31 1.58% At close on November 19th, 2019

Updated on:
November 19th, 2019

5

Shares of Mastercard closed today at $285.31 and stepped up a nice 1.58%. Tuesday was the fifth green session in a row, marking 2.95%.

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

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.
Is MA a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-9Citigroupn/aBuy
2019-9-16Morgan Stanleyn/aOverweight
2019-9-13William Blairn/aOutperform
2019-9-13SunTrust Banksn/aBuy
2019-9-13SunTrust Banksn/aBuy
2019-8-5Barclaysn/aOverweight
2019-8-1UBS Groupn/aBuy
2019-7-31Raymond Jamesn/aOutperform
2019-7-31Nomuran/aBuy
2019-7-31ArgusBuyAverage
2019-7-19Barclaysn/aOverweight
2019-7-18Raymond Jamesn/aOutperform
2019-7-11Morgan Stanleyn/aOverweight
2019-7-11Deutsche Bankn/aBuy
2019-7-10Wells Fargo & Con/aOutperform

Mastercard stock analysis

Daily outlook

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.

MA stock chart (daily)

Weekly outlook

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%).

MA stock chart (weekly)

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 $314.40

How 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:
MA stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-9CitigroupRaises Target$288.00$317.0010.1%
2019-9-16Morgan StanleyRaises Target$291.00$315.008.2%
2019-9-13SunTrust BanksReiterates$310.00$325.004.8%
2019-9-13SunTrust BanksRaises Target$310.00$325.004.8%
2019-8-5BarclaysRaises Target$310.00$319.002.9%
2019-8-1UBS GroupRaises Target$300.00$312.004%
2019-7-31Raymond JamesRaises Target$300.00$308.002.7%
2019-7-31NomuraRaises Target$282.00$324.0014.9%
2019-7-31ArgusRaises Targetn/a$320.00-
2019-7-19BarclaysRaises Target$285.00$310.008.8%
2019-7-18Raymond JamesRaises Target$284.00$300.005.6%
2019-7-11Morgan StanleyRaises Target$269.00$291.008.2%
2019-7-11Deutsche BankRaises Target$267.00$330.0023.6%
2019-7-10Wells Fargo & CoReiterates$285.00$305.007%
(in average)$290.80$314.408.0%
Moving in a range from $330.00 and $291.00, the price forecast for Mastercard stock is $314.40. In average, analysts' outlook on MA price target is positive, upgrading the target by a 8.00% from previous estimations.

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.
MA earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.09n/a
2017-Q32017-10-311.231.348.9%
2017-Q42018-02-011.121.141.8%
2018-Q12018-05-021.261.519.0%
2018-Q22018-07-261.531.668.5%
2018-Q32018-10-301.681.786.0%
2018-Q42019-01-311.531.551.3%
2019-Q12019-04-301.67n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared 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%.

MA annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$8,340 M-$3,120 M37.4%-
2014$9,473 M13.59%$3,617 M38.2%15.93%
2015$9,667 M2.05%$3,808 M39.4%5.28%
2016$10,776 M11.47%$4,059 M37.7%6.59%
2017$12,497 M15.97%$3,915 M31.3%-3.55%
2018$14,950 M19.63%$5,859 M39.2%49.66%
TTM $15,259 M2.07%$6,229 M40.8%6.32%

Quarterly financial results

Mastercard 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%.
MA quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$3,050 M-$1,180 M38.7%-
2017-Q3$3,400 M11.48%$1,430 M42.1%21.19%
2017-Q4$3,312 M-2.59%$227 M6.9%-84.13%
2018-Q1$3,580 M8.09%$1,492 M41.7%557.27%
2018-Q2$3,665 M2.37%$1,569 M42.8%5.16%
2018-Q3$3,898 M6.36%$1,899 M48.7%21.03%
2018-Q4$3,807 M-2.33%$899 M23.6%-52.66%
2019-Q1$3,889 M2.15%$1,862 M47.9%107.12%

Mastercard ownership

When 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:

MAAMZNFISTTMUS
Market cap$284.6 B$868.9 B$84.2 B$277.5 B$66.0 B
Total shares997.5 M495.8 M614.6 M7,300.0 M855.6 M
Float shares991.1 M417.4 M611.6 M7,300.0 M313.2 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 selling0.0%0.0%0.0%0.0%0.0%

Mastercard summary

Tuesday, November 19th, 2019
Open$281.52
Close$285.31
Day range$280.94 - $286.58
Previous close$280.86
Session gain1.58%
Average true range$4.47
50d mov avg$273.60
100d mov avg$274.72
200d mov avg$257.53
Daily patternlb02c
Weekly pattern lt01a

Mastercard performance

Performance 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.
Stock3m6m12m
MAMastercard5.06%13.73%57.12%
AMZNAmazon.com0.17%-3.88%16.68%
FISFidelity National...2.18%16.06%34.29%
TAT&T10.66%21.21%37.62%
TMUST-Mobile US0.89%-0.14%15.04%
VVisa4.48%12.73%38.44%
VZVerizon Communica...7.52%2.41%5.76%
WEX -0.49%0.87%31.63%
WUWestern Union29.01%43.87%54.17%

Mastercard competitors

We selected a few stocks to conform a list of Mastercard competitors to examine if you are interested in investing in MA:

Latest Mastercard stock news