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 26.85% per annum.
- MA price at the close of July 25, 2024 was $429.60 and was lower than the bottom border of the primary price channel by $21.52 (4.77%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 18.74% per annum.
- MA price at the close of July 25, 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: May 24, 2024
a = 5.0095
b = 0.0007
s = 0.0438
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0007) – 1
= 26.85%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0438) – 1
= 19.14%
August 26, 2022 calculations
Top border of price channel:
Exp(Y778)
= Exp(a + b × X778 + 2 × s)
= Exp(a + b × 1,127 + 2 × s)
= Exp(5.0095 + 0.0007 × 1,127 + 2 × 0.0438)
= Exp(5.8314)
= $340.84
Bottom border of price channel:
Exp(Y778)
= Exp(a + b × X778 – 2 × s)
= Exp(a + b × 1,127 – 2 × s)
= Exp(5.0095 + 0.0007 × 1,127 – 2 × 0.0438)
= Exp(5.6563)
= $286.08
May 24, 2024 calculations
Top border of price channel:
Exp(Y1,216)
= Exp(a + b × X1,216 + 2 × s)
= Exp(a + b × 1,764 + 2 × s)
= Exp(5.0095 + 0.0007 × 1,764 + 2 × 0.0438)
= Exp(6.2465)
= $516.18
Bottom border of price channel:
Exp(Y1,216)
= Exp(a + b × X1,216 – 2 × s)
= Exp(a + b × 1,764 – 2 × s)
= Exp(5.0095 + 0.0007 × 1,764 – 2 × 0.0438)
= Exp(6.0713)
= $433.26
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 26.85% per annum.
- MA price at the close of July 25, 2024 was $429.60 and was lower than the bottom border of the primary price channel by $21.52 (4.77%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: February 22, 2024
End date: July 25, 2024
a = 7.1195
b = -0.0006
s = 0.0153
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0006) – 1
= -18.74%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0153) – 1
= 6.33%
February 22, 2024 calculations
Top border of price channel:
Exp(Y1,151)
= Exp(a + b × X1,151 + 2 × s)
= Exp(a + b × 1,672 + 2 × s)
= Exp(7.1195 + -0.0006 × 1,672 + 2 × 0.0153)
= Exp(6.1997)
= $492.58
Bottom border of price channel:
Exp(Y1,151)
= Exp(a + b × X1,151 – 2 × s)
= Exp(a + b × 1,672 – 2 × s)
= Exp(7.1195 + -0.0006 × 1,672 – 2 × 0.0153)
= Exp(6.1383)
= $463.27
July 25, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(7.1195 + -0.0006 × 1,826 + 2 × 0.0153)
= Exp(6.1121)
= $451.29
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(7.1195 + -0.0006 × 1,826 – 2 × 0.0153)
= Exp(6.0508)
= $424.43
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 18.74% per annum.
- MA price at the close of July 25, 2024 was inside the secondary price channel.