Marqeta (NASDAQ:MQ) Stock Price Up 5.6% - Here's What Happened

Key Points

• Marqeta shares rose 5.6% on Monday, briefly touching $16.64 before last trading at $16.75, with volume below its daily average.
• Recent analyst updates were mixed but generally cautious: Deutsche Bank and UBS both raised price targets, while the overall consensus rating remains “Reduce” with an average target price of $20.12.
• The company’s latest earnings beat expectations, posting $0.02 EPS versus an expected loss and revenue of $165.8 million, up 19.2% year over year. Insider selling also continued, including recent share sales by the CRO and a director.

Marqeta, Inc. (NASDAQ:MQ - Get Free Report)'s stock price rose 5.6% during trading on Monday . The stock traded as high as $16.64 and last traded at $16.7530. 362,829 shares changed hands during mid-day trading, a decline of 64% from the average daily volume of 1,017,409 shares. The stock had previously closed at $15.87.

Analyst Ratings Changes

Several research firms have weighed in on MQ. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Marqeta from $4.50 to $18.00 and gave the stock a "hold" rating in a research report on Thursday, July 2nd. UBS Group raised their target price on Marqeta from $17.00 to $19.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Marqeta in a report on Wednesday, June 24th. One equities research analyst has rated the stock with a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Marqeta has a consensus rating of "Reduce" and an average target price of $20.12.

Marqeta Stock Performance

The stock has a market cap of $1.79 billion, a price-to-earnings ratio of 421.73 and a beta of 1.31. The company's 50 day simple moving average is $15.99 and its two-hundred day simple moving average is $16.66.

Marqeta (NASDAQ:MQ - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $0.02 earnings per share for the quarter, topping analysts' consensus estimates of ($0.01) by $0.03. The business had revenue of $165.80 million for the quarter, compared to the consensus estimate of $164.30 million. Marqeta had a net margin of 0.33% and a return on equity of 0.27%. Marqeta's revenue for the quarter was up 19.2% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.08) earnings per share. On average, equities research analysts predict that Marqeta, Inc. will post 0.14 earnings per share for the current fiscal year.

Insider Activity

In other news, CRO Todd Pollak sold 18,750 shares of Marqeta stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $16.88, for a total transaction of $316,500.00. Following the completion of the sale, the executive directly owned 185,008 shares in the company, valued at $3,122,935.04. The trade was a 9.20% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Elaine Paul sold 4,537 shares of the business's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $15.20, for a total value of $68,962.40. Following the completion of the sale, the director directly owned 8,900 shares of the company's stock, valued at approximately $135,280. The trade was a 33.76% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 27,650 shares of company stock worth $463,473. Insiders own 12.61% of the company's stock.

Hedge Funds Weigh In On Marqeta

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Certuity LLC lifted its stake in Marqeta by 22.3% in the third quarter. Certuity LLC now owns 14,235 shares of the company's stock valued at $75,000 after acquiring an additional 2,596 shares during the last quarter. Mariner LLC increased its stake in shares of Marqeta by 4.2% during the 4th quarter. Mariner LLC now owns 66,765 shares of the company's stock worth $317,000 after purchasing an additional 2,670 shares during the last quarter. Victory Capital Management Inc. raised its holdings in shares of Marqeta by 2.7% during the 3rd quarter. Victory Capital Management Inc. now owns 101,567 shares of the company's stock valued at $536,000 after purchasing an additional 2,711 shares in the last quarter. CWM LLC raised its holdings in shares of Marqeta by 82.2% during the 4th quarter. CWM LLC now owns 6,254 shares of the company's stock valued at $30,000 after purchasing an additional 2,821 shares in the last quarter. Finally, DRW Securities LLC lifted its stake in shares of Marqeta by 8.1% in the 4th quarter. DRW Securities LLC now owns 41,224 shares of the company's stock valued at $196,000 after purchasing an additional 3,104 shares during the last quarter. Institutional investors own 78.64% of the company's stock.

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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