MasterCard Inc. (MA) Shares Slip, Investors Watching Closely, Here is Why

MasterCard Inc. (NYSE: MA) shares rose on Monday Nov 21 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, stocks were set to open up this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.

Shares of MasterCard Inc. (NYSE: MA) were downgraded by analysts at Vetr Inc. in a note to their investors today. Vetr Inc. currently has a rating of Hold on the stock. As a means of comparison, a number of other analysts have commented on the company recently, and MasterCard Inc. has earned a consensus one-year price target of $118.00, above the opening price of $104.78. MasterCard Inc. stock has a 52-week high of $108.93. Downgrades happen when analysts believe that the future prospects for the security have dropped from the original recommendation, often because of a considerable and integral change in the company’s procedures, future vision or industry.

Shares of MasterCard Inc. (NYSE: MA) opened at $104.78 on Monday trading between $104.69 and $105.27, and last traded at $105.15, which is an increase of $0.37 or 0.35% compared to the previous closing price.

MasterCard Inc. (NYSE: MA) now has a market cap of 114.57B.

MasterCard Inc. (NYSE: MA) Average Daily Trading Volume

336,049 shares traded hands yesterday, below the average, out of a total float 1,063,692,000. Momentum traders often use increases in trading volume to determine substantial volume accumulation or dissemination by institutional investors, so look for trading volume to pick up in the coming days.

While higher trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks delivers a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is very important.

Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors retain teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.

MasterCard Inc. (NYSE: MA) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

Traders are able to make make more useful judgments on trades when they track the trading habits of professional investors.

Trades for MasterCard Inc. (NYSE: MA) have ranged from $78.52 – 108.93, and the stock now has a 50-day MA of $103.19 and 200-day MA of $97.44. Today’s last price is 3.47%% lower than the 52 week high of $108.93.

Earnings growth is a crucial factor to consider when buying stocks and investors look for companies that have raised their earnings by at least 25% over 3 consecutive years.

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