Mastercard Inc Unusual Bearish Options Activity Means Higher Risks

 Mastercard Inc Unusual Bearish Options Activity Means Higher Risks

In today’s session Mastercard Inc (MA) recorded an unusually high (158) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the January, 2017 put, expecting serious MA decrease. With 158 contracts traded and 28454 open interest for the Jan, 17 contract, it seems this is a quite bearish bet. The option with symbol: MA170120P00087500 closed last at: $0.96 or 2.1% up. About 1.63M shares traded hands. Mastercard Inc (NYSE:MA) has risen 14.11% since March 3, 2016 and is uptrending. It has outperformed by 5.76% the S&P500.

Analysts await Mastercard Inc (NYSE:MA) to report earnings on November, 3. They expect $0.96 earnings per share, up 5.49% or $0.05 from last year’s $0.91 per share. MA’s profit will be $1.07B for 26.79 P/E if the $0.96 EPS becomes a reality. After $0.96 actual earnings per share reported by Mastercard Inc for the previous quarter, Wall Street now forecasts 0.00% EPS growth.

Mastercard Inc (NYSE:MA) Ratings Coverage

Out of 15 analysts covering Mastercard Incorporated (NYSE:MA), 10 rate it a “Buy”, 0 “Sell”, while 5 “Hold”. This means 67% are positive. Mastercard Incorporated has been the topic of 27 analyst reports since July 21, 2015 according to StockzIntelligence Inc. The rating was initiated by UBS on Wednesday, December 16 with “Buy”. The firm has “Buy” rating given on Thursday, October 8 by Guggenheim. Cowen & Co initiated Mastercard Inc (NYSE:MA) rating on Wednesday, September 30. Cowen & Co has “Outperform” rating and $110 price target. Vetr downgraded Mastercard Inc (NYSE:MA) rating on Monday, August 31. Vetr has “Buy” rating and $97.62 price target. S&P Research downgraded Mastercard Inc (NYSE:MA) rating on Friday, October 30. S&P Research has “Hold” rating and $103 price target. The firm earned “Buy” rating on Friday, September 11 by Citigroup. The stock of Mastercard Inc (NYSE:MA) has “Buy” rating given on Tuesday, August 25 by Jefferies. The rating was maintained by Wedbush on Friday, October 30 with “Neutral”. FBR Capital maintained Mastercard Inc (NYSE:MA) on Thursday, July 30 with “Mkt Perform” rating. The stock of Mastercard Inc (NYSE:MA) has “Overweight” rating given on Thursday, December 31 by Piper Jaffray.

According to Zacks Investment Research, “MASTERCARD INCORPORATED advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions and provides industry-leading analysis and consulting services to financial institution customers and merchants. Its family of brands include MasterCard, Maestro and Cirrus.”

Insitutional Activity: The institutional sentiment decreased to 0.89 in Q2 2016. Its down 0.16, from 1.05 in 2016Q1. The ratio worsened, as 65 funds sold all Mastercard Inc shares owned while 451 reduced positions. 86 funds bought stakes while 375 increased positions. They now own 800.46 million shares or 4.95% less from 842.14 million shares in 2016Q1.
Greenwood Cap Associates Ltd Liability accumulated 1.09% or 40,366 shares. Deutsche Savings Bank Ag accumulated 0.09% or 1.44M shares. Dnb Asset Mgmt As has 0% invested in the company for 82,399 shares. Arrow Capital Mngmt Lc owns 39,525 shares or 5.67% of their US portfolio. Markel Corporation has invested 0.35% of its portfolio in Mastercard Inc (NYSE:MA). Steinberg Glob Asset Mgmt accumulated 27,644 shares or 0.42% of the stock. Odey Asset Mgmt Grp Incorporated holds 0.01% or 1,300 shares in its portfolio. Cadinha & Company Limited Company holds 74,416 shares or 1.4% of its portfolio. Cam Gru Hldgs A S holds 17,000 shares or 0.03% of its portfolio. Oakmont Corporation has 303,335 shares for 5.34% of their US portfolio. Bokf Na last reported 85,339 shares in the company. Klingenstein Fields & Limited Company accumulated 0.02% or 5,095 shares. Enterprise Fincl Ser accumulated 0.3% or 5,714 shares. Mckinley Carter Wealth reported 3,018 shares or 0.14% of all its holdings. Winton Cap Gp accumulated 0.54% or 372,182 shares.

Insider Transactions: Since April 15, 2016, the stock had 0 insider purchases, and 15 insider sales for $92.18 million net activity. The insider MasterCard Foundation sold 84,000 shares worth $7.95 million. Another trade for 94,345 shares valued at $9.13 million was made by HUNDMEJEAN MARTINA on Monday, August 8. Reeg Robert had sold 6,000 shares worth $568,715. Flood Gary J also sold $9.38M worth of Mastercard Inc (NYSE:MA) on Monday, May 2. Another trade for 5,784 shares valued at $561,048 was sold by Garrow Ronald E. Shares for $1.31 million were sold by FORSTER ANDREA L on Tuesday, May 10. Barzi Silvio sold 9,600 shares worth $926,071.

MasterCard Incorporated is a technology firm that connects consumers, financial institutions, merchants, governments and businesses across the world. The company has a market cap of $114.25 billion. The Firm operates through payment solutions segment. It has a 30.22 P/E ratio. The Firm allows user to make payments by a range of payment solutions and services using various brands, which include MasterCard, Maestro and Cirrus.

MA Company Profile

MasterCard Incorporated, incorporated on May 9, 2001, is a technology firm that connects consumers, financial institutions, merchants, governments and businesses across the world. The Firm operates through payment solutions segment. The Firm allows user to make payments by a range of payment solutions and services using its brands, which include MasterCard, Maestro and Cirrus. The Company’s offerings include loyalty and reward programs, information services and consulting.

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