Mastercard Incorporated (NYSE: MA) has seen a rise in its stock price by 1.31 in relation to its previous close of 443.58. However, the company has experienced a -1.69% decline in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-05-06 that Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock’s price, do they really matter?
Is It Worth Investing in Mastercard Incorporated (NYSE: MA) Right Now?
The price-to-earnings ratio for Mastercard Incorporated (NYSE: MA) is above average at 35.72x. The 36-month beta value for MA is also noteworthy at 1.10. There are mixed opinions on the stock, with 20 analysts rating it as a “buy,” 14 rating it as “overweight,” 4 rating it as “hold,” and 1 rating it as “sell.”
The public float for MA is 827.60M, and at present, short sellers hold a 0.62% of that float. The average trading volume of MA on May 07, 2024 was 2.43M shares.
MA’s Market Performance
MA stock saw a decrease of -1.69% in the past week, with a monthly decline of -5.82% and a quarterly a decrease of -1.62%. The volatility ratio for the week is 1.69%, and the volatility levels for the last 30 days are 1.53% for Mastercard Incorporated (MA). The simple moving average for the last 20 days is -2.16% for MA stock, with a simple moving average of 5.38% for the last 200 days.
Analysts’ Opinion of MA
Many brokerage firms have already submitted their reports for MA stocks, with TD Cowen repeating the rating for MA by listing it as a “Buy.” The predicted price for MA in the upcoming period, according to TD Cowen is $545 based on the research report published on April 11, 2024 of the current year 2024.
Oppenheimer, on the other hand, stated in their research note that they expect to see MA reach a price target of $510. The rating they have provided for MA stocks is “Outperform” according to the report published on January 11th, 2024.
MA Trading at -4.27% from the 50-Day Moving Average
After a stumble in the market that brought MA to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -8.29% of loss for the given period.
Volatility was left at 1.53%, however, over the last 30 days, the volatility rate increased by 1.69%, as shares sank -6.16% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -5.08% lower at present.
During the last 5 trading sessions, MA fell by -1.69%, which changed the moving average for the period of 200-days by +12.89% in comparison to the 20-day moving average, which settled at $457.80. In addition, Mastercard Incorporated saw 5.36% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at MA starting from Mastercard Foundation, who sale 142,000 shares at the price of $442.14 back on May 03 ’24. After this action, Mastercard Foundation now owns 96,377,308 shares of Mastercard Incorporated, valued at $62,783,681 using the latest closing price.
Mastercard Foundation, the 10% Owner of Mastercard Incorporated, sale 132,000 shares at $440.73 during a trade that took place back on May 02 ’24, which means that Mastercard Foundation is holding 96,519,308 shares at $58,176,664 based on the most recent closing price.
Stock Fundamentals for MA
Current profitability levels for the company are sitting at:
- 0.58 for the present operating margin
- 0.81 for the gross margin
The net margin for Mastercard Incorporated stands at 0.46. The total capital return value is set at 0.58. Equity return is now at value 188.42, with 29.05 for asset returns.
Based on Mastercard Incorporated (MA), the company’s capital structure generated 0.68 points at debt to capital in total, while cash flow to debt ratio is standing at 0.75. The debt to equity ratio resting at 2.16. The interest coverage ratio of the stock is 25.19.
Currently, EBITDA for the company is 15.35 billion with net debt to EBITDA at 0.53. When we switch over and look at the enterprise to sales, we see a ratio of 16.51. The receivables turnover for the company is 4.26for trailing twelve months and the total asset turnover is 0.6. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.09.
Conclusion
In summary, Mastercard Incorporated (MA) has had a mixed performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
