Mastercard Inc (MA)
Mastercard Incorporated is an American multinational financial services corporation headquartered in the Mastercard International Global Headquarters in Purchase, New York. The Global Operations Headquarters is located in O'Fallon, Missouri, a municipality of St. Charles County, Missouri. Throughout the world, its principal business is to process payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the Mastercard brand debit, credit and prepaid cards to make purchases. Mastercard Worldwide has been a publicly traded company since 2006.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 27.58% per annum.
- MA price at the close of May 2, 2024 was $441.10 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 47.70% per annum.
- MA price at the close of May 2, 2024 was inside the secondary price channel.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of MA price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: August 26, 2022
End date: April 30, 2024
a = 4.9340
b = 0.0007
s = 0.0439
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0007) – 1
= 27.58%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0439) – 1
= 19.20%
August 26, 2022 calculations
Top border of price channel:
Exp(Y836)
= Exp(a + b × X836 + 2 × s)
= Exp(a + b × 1,211 + 2 × s)
= Exp(4.9340 + 0.0007 × 1,211 + 2 × 0.0439)
= Exp(5.8299)
= $340.32
Bottom border of price channel:
Exp(Y836)
= Exp(a + b × X836 – 2 × s)
= Exp(a + b × 1,211 – 2 × s)
= Exp(4.9340 + 0.0007 × 1,211 – 2 × 0.0439)
= Exp(5.6542)
= $285.50
April 30, 2024 calculations
Top border of price channel:
Exp(Y1,256)
= Exp(a + b × X1,256 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(4.9340 + 0.0007 × 1,824 + 2 × 0.0439)
= Exp(6.2389)
= $512.30
Bottom border of price channel:
Exp(Y1,256)
= Exp(a + b × X1,256 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(4.9340 + 0.0007 × 1,824 – 2 × 0.0439)
= Exp(6.0633)
= $429.78
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 27.58% per annum.
- MA price at the close of May 2, 2024 was $441.10 and was inside the primary price channel.
Secondary Trend
Start date: March 19, 2024
End date: May 2, 2024
a = 9.3522
b = -0.0018
s = 0.0105
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0018) – 1
= -47.70%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0105) – 1
= 4.30%
March 19, 2024 calculations
Top border of price channel:
Exp(Y1,227)
= Exp(a + b × X1,227 + 2 × s)
= Exp(a + b × 1,782 + 2 × s)
= Exp(9.3522 + -0.0018 × 1,782 + 2 × 0.0105)
= Exp(6.2085)
= $496.98
Bottom border of price channel:
Exp(Y1,227)
= Exp(a + b × X1,227 – 2 × s)
= Exp(a + b × 1,782 – 2 × s)
= Exp(9.3522 + -0.0018 × 1,782 – 2 × 0.0105)
= Exp(6.1664)
= $476.47
May 2, 2024 calculations
Top border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(9.3522 + -0.0018 × 1,826 + 2 × 0.0105)
= Exp(6.1304)
= $459.62
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(9.3522 + -0.0018 × 1,826 – 2 × 0.0105)
= Exp(6.0883)
= $440.66
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 47.70% per annum.
- MA price at the close of May 2, 2024 was inside the secondary price channel.