Mastercard stock: buy or sell?

MA stock price: $255.36 0.74% At close on May 21st, 2019

Updated on:
May 21st, 2019

5

Mastercard stepped up a slightly good 0.74% and closed at $255.36.

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. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

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 posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 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
2019-5-6BarclaysOverweightOverweight
2019-5-3KeyCorpn/aOverweight
2019-5-3KeyCorpn/aOverweight
2019-5-2UBS GroupBuyBuy
2019-5-1CitigroupBuyBuy
2019-4-26Raymond JamesOutperformOutperform
2019-4-17OppenheimerOutperformOutperform
2019-4-11Wells Fargo & Con/aOutperform
2019-4-1Deutsche Bankn/aBuy
2019-3-14Wedbushn/aOutperform
2019-3-14WedbushOutperformOutperform
2019-2-4Oppenheimern/aOutperform
2019-2-20Nomuran/aBuy
2019-1-9UBS GroupNeutralBuy
2019-1-8Bank of AmericaBuyNeutral

Mastercard stock analysis

Daily outlook

Mastercard stepped up a slightly good 0.74% and closed at $255.36.

Shares of Mastercard closed today at $255.36 and stepped up a slightly good 0.74%. On March, SMA100d and SMA200d crossed up triggering a rise of 9.62%. Since price and SMA200d lines crossed up on January, MA climbed $59.11 (30.12%). On April 30th, MA hit a new all time high, pushing higher than on April/29 tops. Check different trading setups that use ATHs as triggers.

MA stock chart (daily)

Weekly outlook

Mastercard raised a tiny 1.11% this week.

Mastercard stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last price record Mastercard marked late April. Late March, SMA20w and SMA40w crossed up triggering a rise of 10.81%. Since price and SMA40w lines crossed up by mid January, MA climbed $59.73 (30.53%).

MA stock chart (weekly)

Mastercard stock price history

Mastercard IPO was on May 25th, 2006 at $3.04 per share1. Since then, MA stock surged a 8,300.00%, with an average of 691.70% per year. If you had invested right after MA's IPO a $1,000 in Mastercard stock in 2006, it would worth $83,000.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Mastercard stock historical price chart

MA stock reached all-time highs on April 30th with a price of $257.43.

Mastercard stock price target is $258.30

Nobody can reliably foresee how stock prices may evolve in the future. 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 month we found 15 price forecasts for MA stock:
MA stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-5-6BarclaysRaises Target$261.00$285.009.2%
2019-5-3KeyCorpReiterates$230.00$265.0015.2%
2019-5-3KeyCorpRaises Target$230.00$265.0015.2%
2019-5-2UBS GroupRaises Target$247.00$300.0021.5%
2019-5-1CitigroupRaises Target$274.00$288.005.1%
2019-4-26Raymond JamesRaises Target$247.00$278.0012.6%
2019-4-17OppenheimerRaises Target$242.00$259.007%
2019-4-11Wells Fargo & CoReiterates$238.00$270.0013.4%
2019-4-1Deutsche BankReiterates$221.00$267.0020.8%
2019-3-14WedbushReiterates$220.00$235.006.8%
2019-3-14WedbushRaises Target$220.00$235.006.8%
2019-2-4OppenheimerRaises Target$221.00$242.009.5%
2019-2-20NomuraRaises Targetn/a$252.00-
2019-1-9UBS GroupUpgrades$206.00$226.009.7%
2019-1-8Bank of AmericaDowngrades$230.00$207.00-10%
(in average)$234.80$258.3010.0%
The price target for Mastercard stock is $258.30, moving in a range between $300.00 and $207.00. In average, analysts' outlook on MA price forecast is positive, upgrading the prediction by a 10.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last April/30, when Mastercard presented its last earnings report, it inched a tiny 3.33%. As soon as we get its posted EPS from the earnings report, we will update 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

In 2018, Mastercard annual sales boosted a dazzling 19.63% to $14,950.00 M dollars from $12,497.00 marked in 2017. When comparing 2018 vs 2017, in line, profit margin (that is, the net income divided by revenues) rose a 7.86% to 39.19%.

Mastercard fiscal year ends 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 income $6,229.00 million dollars. If we compare this TTM figures with the last reported annuality, we can esteem Mastercard business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, appreciated a slightly fine 2.07%. Regarding profit margin, Mastercard stepped up 1.63% to 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 posted $3,889.00 M in sales for 2019-Q1, a 2.15% up compared to previous quarter. Reported quarter income marked $1,862.00 M 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 turnover to same quarter last year, Mastercard sales marked a very good growth and soared 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 review 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 following table shows ownership data compared to other related companies:

MAAMZNFISTTMUS
Market cap$257.9 B$915.2 B$38.3 B$236.6 B$65.9 B
Total shares1,010.0 M492.3 M323.6 M7,300.0 M854.3 M
Float shares1,000.0 M413.2 M321.5 M7,290.0 M312.1 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, May 21st, 2019
Open$255.00
Close$255.36
Day range$253.79 - $255.95
Previous close$253.49
Session gain0.74%
Average true range$5.42
50d mov avg$240.44
100d mov avg$224.52
200d mov avg$213.91
Daily patternlt01a
Weekly pattern lt06a

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, Total System Services, Visa, Verizon Communications, WEX and Western Union.
Stock3m6m12m
MAMastercard14.51%40.28%34.32%
AMZNAmazon.com13.94%23.76%15.45%
FISFidelity National...10.85%15.30%15.76%
TAT&T5.71%14.00%6.12%
TMUST-Mobile US5.40%15.03%36.33%
TSSTotal System Serv...7.39%21.99%17.46%
VVisa12.50%23.73%25.64%
VZVerizon Communica...5.61%3.59%28.04%
WEX 16.44%35.29%15.46%
WUWestern Union10.03%7.42%1.04%

Mastercard competitors

One check before trading any stock is to review a list of its competitors, in this case for Mastercard. We selected 9 companies as Mastercard competitors as they are in the same industry or have similar market objectives.

Latest Mastercard stock news