Mastercard Incorporated (MA): Be Fearful When Others Are Greedy

Considering all key technical indicators, a 48% Sell signal has occurred for Mastercard Incorporated (NYSE:MA). The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the MA’s short-term trajectory should know that short terms indicators for the stock averaged 60% Sell with an average daily trading volume over the past 20 days at 4633210 shares. MA stock has overall a 0.5% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 3604088 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was shares, is 0% Hold on the basis of long term indicators.

The share price is currently staying around the first support level of $202.17. Below this, the next support is placed in the zone of $199.83. Till the time, the MA stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 44.26 on daily chart, which may remain a cause for concern. If the price breaks below $199.83 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $206.55 mark may result into a pull-back move towards $208.59 level.

Mastercard Incorporated (MA) is projected to climb by 14.53 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $265 as a high price target. This represents a whopping 29.58 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $232, which represents a return potential of 13.45 percent when compared to the closing price of the stock of $204.5 on Monday, October 22. The lowest price target for the stock is $165 — slightly more than -19.32 percent from MA’s current share price.

Here’s a rundown of insider trading activity for sense of Mastercard Incorporated (NYSE:MA). The earliest insider trade took place on 08/01/2018. Hundmejean Martina parted with a total of 69.82 thousand shares of company at average share price of $200.35. The total for the sales was set at $13.99 million. After this transaction, the CFO account balance stood at 59.09 thousand shares. The stock grew 2.07 percent since that insider sale. On 05/03/2018, Vosburg Craig, President, North America, sold 17.5 thousand shares at a price per share of $185.96. This removed 3.25 million shares from the insider’s fortune and the stock saw a 9.97 percent rally in value since the news became public. This transaction left 24.73 thousand shares in the President, North America account. On 05/03/2018, CEO Banga Ajay performed a sale transaction worth $44.45 million. This sale at $185.97 each has eliminated 239.02 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 9.96 percent increase since the transaction was reported. The insider now is left with 282 thousand shares remaining in the account. Fraccaro Michael, who performs the Chief Human Resources Officer job, sold 4.12 thousand shares for $741.96 thousand. The disposal occurred on 05/01/2018 was priced at $180 per share. The share price soared 13.61 percent since the reporting date. Fraccaro Michael now left with a stake of 3.55 thousand MA stock worth $725.16 thousand after the insider selling.

MA shares accumulated 1.44 points or 0.71 percent on Monday to $204.5 with a heavy trade volume of 4.008 million shares. After opening the session at $203.72, the shares went as high as $206.26 and as low as $201.88, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $213 billion and now has 1.04 billion shares outstanding. Mastercard Incorporated (MA) stock has lost -7.84 percent of market value in 21 trading days.

Analysts at Raymond James, assumed coverage of Mastercard Incorporated (NYSE:MA) with Outperform recommendation, according to their opinion released on July 24.

MA stock has a trailing 3-year beta of 1.21, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $5.19 a share in the trailing twelve months. The stock’s value has surged 35.11 percent year to date (YTD) against a rise of 40.67 percent in 12 month’s time. The company’s shares still trade -9.25 percent away from its 1-year high of $225.35 and 45.44 percent up from 52-week low of $140.61. The average consensus rating on the company is 1.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Mastercard Incorporated (MA) are trading at a P/E ratio of 40.12 times earnings reported for the past 12 months. The industry MA operates in has an average P/E of 64.51. Its P/E ratio went as low as 27.85X and as high as 34.58 over the 5-year span. Further, it is sporting a 15.26 on the Price-to-Sales ratio. Compare this with the industry average P/S of 6.6. 0 percent is the gross profit margin for Mastercard Incorporated and operating margin sits at 51.8 percent. Along with this, the net profit margin is 33.8 percent.

Analysts are forecasting revenue to climb 13.6 percent to $3.86B in the next fiscal quarter, while earnings are seen soaring by nearly 25.37 percent to $1.68 per share. History has shown that shares in Mastercard Incorporated have gone up on 21 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.66 per share, better than the $1.53, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $3.67B, better than the $3.65B analysts expected. Earnings are estimated to increase by 18.7 percent this year, 17.08 percent next year and continue to increase by 22.11 percent annually for the next 5 years.