Recent trading patterns in the stock of Mastercard Incorporated (NYSE:MA) have investors on high alert. Analysts often look at historical trading patterns to predict a stock’s future performance. In the case of MA, the data might be telling investors a thing or two about where the stock is headed. In the most recent quarter, institutional ownership increased by a net of 13.7 million shares, or 1.64%. This is a bullish sign and indicates that institutions are feeling more optimistic about the outlook for MA overall. 589 holders increased their positions, 632 decreased their positions, and 208 holders held their positions.
Among institutions that increased their positions, 111 were new positions. Among holders that decreased their positions, 52 sold out of the stock Mastercard Incorporated. Insider ownership during the latest quarter decreased by a net of 636020 shares, indicating that MA’s key executives are feeling more bearish about the stock than they did three months ago. 2 or 8% of the trades during the past quarter were buys, and 23 or 92% were sells. This activity represents a continuation of a theme over the past twelve months. Insider ownership during the last year has decreased by a net of 2.87 million shares. 17.48% of insider trades in the last 12 months were buys, and 82.52% were sells.
Over the past year, the price of Mastercard Incorporated (MA) has increased 44.77% while the S&P 500 has increased 19.15%. During the past 20 days, MA has increased 3.73% while the broad market has increased 1.82%. MA ‘s 20-day moving average currently sits below its 100-day moving average. This is a bearish signal that suggests the stock price might have farther to fall. MA’s average trading volume during the past 20 days is lower than the average volume over the past 100 days, which could be an indication that investors are feeling less certain than usual about the direction of MA’s future price movements.
Mastercard Incorporated (NYSE:MA) has a 20-day RSI of 70.87%. According to this momentum indicator, a reading above 70 suggests the stock is entering overbought territory and that the recent uptrend may be about to reverse. The MACD tells a similair story. MA’s 9-day MACD currently sits below the 20-day MACD, indicating that MA’s upside momentum has decreased during the last three weeks. This suggests that the trend might soon reverse. MA’s average trading volatility during the past few weeks is -19.04% lower than the average volatility over the past 100 days. This means that the stock’s daily price swings have been less extreme in recent times compared to the past.
Analysts expect Mastercard Incorporated (MA) to generate earnings per share of $4.43 in 2017. This works out to an increase of 17.51% compared to last year’s earnings. For comparison’s sake, analysts expect the S&P 500 to grow earnings by an average of 12% in 2017. The average investment rating for MA on a scale of 1 to 5 (1 being a strong sell and 5 being a strong buy) is a 4.71 or a Moderate Buy. Three months ago, analysts assigned MA a 4.35 rating, which implies that analysts have become more optimistic about the outlook for the stock over the next year.