Mastercard stock: buy or sell
Updated on:
Jan 16th, 2021
2
Mastercard stock brief
- Mastercard closed on Friday at $323.26 after sliding a -1.12%.
- The stock is configuring an uptrend pattern since last October, when it bottomed at $280.84. Up to date, shares made a 15.10% gain since the beginning of this rally
- The price is currently under the lower Bollinger band, which often indicates a short-term rebound that you better not try to trade
- Deutsche Bank Aktiengesellschaft published a strong positive rating for Mastercard on Thursday, forecasting $420.00
- 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 not any eligible buy setup. This doesn't mean we expect a selloff for $MA in coming sessions, or that it may not climb higher. Simply, it doesn't match our recommended trading systems
Should I sell Mastercard stock?
Knowing when to sell a stock is even harder than knowing when to buy it. Similarly to when we have to buy shares, determining when is the best time to sell is not a whimsy decision, and we must use our own trading strategy. When selling, as well as buying, our strategies are very easy to follow and are only valid for selling stocks you already own, not for selling short Mastercard stock
As a golden rule, you must never hold a trading operation that results in losses greater than those expected at the time of purchase. The timing to sell shares should always be dictated 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 own Mastercard stock and your operation is in profit probably is not time to sell now
Price lost SMA50 level
Nevertheless that upward trend may have come to an end, or show evidences of running out, by now that the price dropped below that moving-average level on Thursday. This is a good time to revise your current setup for this position and consider if it's time to sell
Price broke down below last bottom
Mastercard ratings
In the last 30 days, 5 ratings were published for Mastercard. General sentiment is bullish, with 5 out of 5 publishing optimistic forecasts
| Brokerage firm | Rating |
|---|---|
| Dec 22nd, 2020 | |
| Barclays | |
| Jan 4th, 2021 | |
| Wells Fargo & Company | Buy |
| Jan 6th, 2021 | |
| Bank of America | Neutral → |
| Jan 13th, 2021 | |
| Jefferies Financial Group | Neutral → |
| Jan 14th, 2021 | |
| Deutsche Bank Aktiengesellschaft | |
Mastercard stock analysis
Since last October, Mastercard has been drawing an uptrend that by now marked an amazing 15.10%. During this uptrend, the price offered some buy points on the breakouts. Latest pullback was in mid-December, when price bounced at $325.12. On Friday, the uptrend got broken when price fell under the $325.12 support
SMAs overview
Supports and resistances
The current resistances are:
The current supports are:
Bollinger bands
When the price moves out of the band (above the upper line or below the lower line) it tells that the price action is maintaining a very strong momentum and therefore can correct the trend to the average. In this case, the price is lower the upper band, and that should mean a short-term bounce (at least) until it is back above the band
Relative strength index
The has been between the levels of 70 and 30 for some weeks, and therefore, without this indicator really serving to help us make any decisions.
Mastercard stock price history
Mastercard started trading on May 25th, 2006 at $3.74 per share1. Since then, MA stock surged by 8,543.32%, with an average of 610.24% per year. If you had invested thousand dollars in Mastercard stock at that time, it would worth $86,433.16 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 tomorrow. However, many stock price forecasts are issued every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions publish their price predictions based on the stock price action and the company fundamental data. Most of these predictions follow the publication of new financial data by the company, and many times. If you are a small investor you don't have to invest based on these price targets.
There are 5 price forecasts published for Mastercard that average $391.00. That is a 20.96% than the current price ($323.26).
| Brokerage firm | Price target |
|---|---|
| Dec 22nd, 2020 | |
| Barclays | $320.00 |
| Jan 4th, 2021 | |
| Wells Fargo & Company | $350.00 → $400.00 |
| Jan 6th, 2021 | |
| Bank of America | $400.00 |
| Jan 13th, 2021 | |
| Jefferies Financial Group | $315.00 → $415.00 |
| Jan 14th, 2021 | |
| Deutsche Bank Aktiengesellschaft | $383.00 → $420.00 |
Earnings and financials
Last October, Mastercard Incorporated ($MA) reported adjusted EPS for that slightly missed Wall St. expectations. Quarterly EPS was $1.60 per share compared to the forecasted $1.66. This quarterly report means an earnings surprise of -3.61%. On the contrary, reported sales were $3.8 billion, consistent with analysts' forecasts.
This compares to Earnings of $2.15 per share a year ago, so posted EPS is a loss of -25.58%. Looking at sales, figures collapsed a -14.10% compared to $44.7B same quarter a year ago.Mastercard ($MA) is releasing financial report on January 27. Forecasted for this quarter is $1.53, compared to $1.60 that was reported for Q3.
Mastercard performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Mastercard ($MA) | -3.10% | -4.80% | 7.30% |
Please read:
The thoughts given in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this report does not know the particular scenarios of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are posted for informational motives onlyMastercard summary
| Friday, January 15th, 2021 | |
|---|---|
| Open | $327.54 |
| Close | $323.26 |
| Day range | $321.88 - $329.69 |
| Previous close | $326.93 |
| Session gain | -1.12% |
| Average true range | $11.69 |
| 50d mov avg | $336.95 |
| 100d mov avg | $335.52 |
| 200d mov avg | $314.56 |
| Earnings date | January 27th, 2021 |