The stock price of Mastercard Incorporated (NYSE: MA) has surged by 1.28 when compared to previous closing price of 528.96, but the company has seen a 0.89% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2024-12-25 that Mastercard is undervalued, showing strong growth and profitability despite inflation and market challenges, making it a solid investment opportunity. The company excels in cross-border payments and digital transactions, maintaining high operating margins and benefiting from increased travel. Mastercard’s valuation reflects its premium status, with a high P/E ratio justified by efficient cash use and strong return on equity.
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 40.51x, Company’s 36-month beta value is 1.10.Analysts have differing opinions on the stock, with 21 analysts rating it as a “buy,” 10 as “overweight,” 8 as “hold,” and 0 as “sell.”
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The public float for MA is 817.09M, and currently, short sellers hold a 0.68% ratio of that floaft. The average trading volume of MA on December 26, 2024 was 2.61M shares.
MA’s Market Performance
The stock of Mastercard Incorporated (MA) has seen a 0.89% increase in the past week, with a 2.85% rise in the past month, and a 9.45% gain in the past quarter. The volatility ratio for the week is 2.04%, and the volatility levels for the past 30 days are at 1.54% for MA. The simple moving average for the past 20 days is 1.36% for MA’s stock, with a 11.94% simple moving average for the past 200 days.
Analysts’ Opinion of MA
Many brokerage firms have already submitted their reports for MA stocks, with Oppenheimer repeating the rating for MA by listing it as a “Outperform.” The predicted price for MA in the upcoming period, according to Oppenheimer is $591 based on the research report published on October 01, 2024 of the current year 2024.
Compass Point, on the other hand, stated in their research note that they expect to see MA reach a price target of $525. The rating they have provided for MA stocks is “Neutral” according to the report published on September 04th, 2024.
Exane BNP Paribas gave a rating of “Neutral” to MA, setting the target price at $470 in the report published on September 03rd of the current year.
MA Trading at 2.89% 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 -0.26% of loss for the given period.
Volatility was left at 1.54%, however, over the last 30 days, the volatility rate increased by 2.04%, as shares surge +1.73% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +5.73% upper at present.
During the last 5 trading sessions, MA rose by +0.89%, which changed the moving average for the period of 200-days by +14.18% in comparison to the 20-day moving average, which settled at $528.54. In addition, Mastercard Incorporated saw 25.60% 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 proposed sale 1,150,000 shares at the price of $530.12 back on Nov 12 ’24. After this action, Mastercard Foundation now owns shares of Mastercard Incorporated, valued at $609,638,000 using the latest closing price.
SACHIN J. MEHRA, the Chief Financial Officer of Mastercard Incorporated, sale 4,716 shares at $500.44 during a trade that took place back on Nov 01 ’24, which means that SACHIN J. MEHRA is holding 27,304 shares at $2,360,075 based on the most recent closing price.
Stock Fundamentals for MA
Current profitability levels for the company are sitting at:
- 0.57 for the present operating margin
- 0.86 for the gross margin
The net margin for Mastercard Incorporated stands at 0.45. The total capital return value is set at 0.51. Equity return is now at value 179.23, with 28.36 for asset returns.
Based on Mastercard Incorporated (MA), the company’s capital structure generated 0.71 points at debt to capital in total, while cash flow to debt ratio is standing at 0.77. The debt to equity ratio resting at 2.47. The interest coverage ratio of the stock is 25.26.
Currently, EBITDA for the company is 15.15 billion with net debt to EBITDA at 0.44. When we switch over and look at the enterprise to sales, we see a ratio of 18.19. The receivables turnover for the company is 6.78for trailing twelve months and the total asset turnover is 0.58. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.29.
Conclusion
In a nutshell, Mastercard Incorporated (MA) has experienced a better performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
