Put Buyers Flock to Mastercard Stock

MA has shed over 10% in 2022

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Mastercard Incorporated (NYSE: MA) is a global technology-driven company in the financial services industry. It is the second largest payment-processing corporation in the world behind Visa. Individuals, businesses, financial institutions, and governments across more than 210 countries use Mastercard’s services to take part in the digital economy. At last glance, MA is trading down 2.6% at $317.40.

Furthermore, on Nov. 7 Mastercard announced that it will be taking part in the Citi Fintech Conference in in New York City on Monday, Nov. 14. The company’s chief financial officer, Sachin Mehra, will be participating on Mastercard’s behalf.

Regarding the stock, MA is down by about 10% compared to what it traded at a year ago and has decreased by 19% since reaching a peak of $399.92 in February. Additionally, it has dropped 12% year-to-date. However, the stock has recovered by 18% since bottoming at $276.87 in October, experiencing 11% growth in the past month. Moreover, it offers a dividend yield of 0.6% at a forward dividend of $1.96.

Nonetheless, Mastercard maintains a relatively high valuation, trading at a forward price-earnings ratio of 26.32 and a price-sales ratio of 14.68. This is largely due to the business’s high growth expectations. It is estimated to end fiscal 2022 with 17.5% revenue growth and 26% earnings growth.

Puts have been much more popular than usual in the options pits, per MA's 50-day put/call volume ratio of 1.09 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 74% of readings from the past year. 

 
 

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