JPMorgan Chase & Co. Buys 975,861 Shares of Marqeta, Inc. $MQ

Key Points

• JPMorgan Chase increased its stake in Marqeta by 271.5% in Q3, buying 975,861 shares to own 1,335,320 shares (0.30% of the company) worth $7.05 million.
• Marqeta beat quarterly expectations with revenue of $172.1M (up 26.7% year-over-year) and $0.00 EPS, but remains unprofitable (negative net margin and ROE) with the stock trading around $4 and a $1.72B market cap.
• Wall Street sentiment has turned cautious: the consensus rating is "Reduce" with an average price target of $5.14 after several price-target cuts, while institutional ownership is high (~78.6%) and insiders recently bought shares.

JPMorgan Chase & Co. boosted its stake in shares of Marqeta, Inc. (NASDAQ:MQ - Free Report) by 271.5% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,335,320 shares of the company's stock after purchasing an additional 975,861 shares during the quarter. JPMorgan Chase & Co. owned 0.30% of Marqeta worth $7,050,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently bought and sold shares of MQ. Quarry LP acquired a new position in shares of Marqeta during the third quarter valued at about $26,000. CTC Alternative Strategies Ltd. acquired a new stake in Marqeta during the third quarter worth about $55,000. Daiwa Securities Group Inc. bought a new position in Marqeta during the second quarter valued at about $66,000. Campbell & CO Investment Adviser LLC bought a new position in Marqeta during the third quarter valued at about $60,000. Finally, Prelude Capital Management LLC acquired a new position in Marqeta in the 3rd quarter valued at approximately $62,000. 78.64% of the stock is currently owned by institutional investors and hedge funds.

Marqeta Trading Up 1.0%

NASDAQ MQ opened at $4.03 on Tuesday. Marqeta, Inc. has a 1-year low of $3.47 and a 1-year high of $7.04. The company has a market capitalization of $1.72 billion, a price-to-earnings ratio of -134.33 and a beta of 1.48. The stock's 50 day moving average is $4.11 and its two-hundred day moving average is $4.62.

Marqeta (NASDAQ:MQ - Get Free Report) last issued its earnings results on Tuesday, February 24th. The company reported $0.00 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.01) by $0.01. The business had revenue of $172.11 million during the quarter, compared to analysts' expectations of $167.05 million. Marqeta had a negative return on equity of 1.62% and a negative net margin of 2.23%.Marqeta's quarterly revenue was up 26.7% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.05) EPS. On average, analysts predict that Marqeta, Inc. will post 0.06 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Judson C. Linville acquired 25,570 shares of the company's stock in a transaction on Friday, February 27th. The stock was purchased at an average cost of $3.93 per share, for a total transaction of $100,490.10. Following the completion of the purchase, the director directly owned 104,220 shares of the company's stock, valued at $409,584.60. The trade was a 32.51% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 12.61% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

MQ has been the topic of several recent research reports. Weiss Ratings reissued a "sell (d)" rating on shares of Marqeta in a report on Friday. Morgan Stanley cut their target price on Marqeta from $6.00 to $5.00 and set an "equal weight" rating for the company in a research note on Wednesday, February 25th. UBS Group reduced their target price on Marqeta from $5.00 to $4.25 and set a "neutral" rating for the company in a research report on Wednesday, February 25th. Mizuho reiterated a "neutral" rating and set a $4.50 price target (down from $8.00) on shares of Marqeta in a research note on Thursday, January 8th. Finally, Keefe, Bruyette & Woods lowered their price target on shares of Marqeta from $6.00 to $5.50 and set a "market perform" rating on the stock in a report on Friday, January 2nd. One investment analyst has rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Reduce" and an average price target of $5.14.

Marqeta Company Profile

Marqeta is a modern card issuing and payment processing platform that enables businesses to design, launch and manage customized payment cards. The company offers a fully programmable open API that allows clients to create virtual, physical and tokenized payment cards with real-time transaction controls and dynamic spend limits. By leveraging Marqeta's infrastructure, companies can streamline their payment operations, reduce time to market and deliver tailored payment experiences to end consumers.

Founded in 2010 and headquartered in Oakland, California, Marqeta was established by CEO Jason Gardner with the goal of transforming traditional card issuance through cloud-native technology.

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