MicroStrategy (NASDAQ:MSTR) Stock Price Down 5.4% – Should You Sell?

MicroStrategy Incorporated (NASDAQ:MSTR)’s stock price fell 5.4% during mid-day trading on Monday . The stock traded as low as $340.02 and last traded at $344.61. 5,958,322 shares were traded during trading, a decline of 69% from the average session volume of 18,958,391 shares. The stock had previously closed at $364.20.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on MSTR shares. Barclays upped their price objective on shares of MicroStrategy from $275.00 to $515.00 and gave the stock an “overweight” rating in a research report on Monday, November 25th. TD Cowen raised their price target on MicroStrategy from $392.00 to $525.00 and gave the stock a “buy” rating in a report on Monday, November 25th. Sanford C. Bernstein reiterated an “outperform” rating and set a $600.00 price target on shares of MicroStrategy in a research report on Thursday, December 12th. Canaccord Genuity Group raised their price objective on MicroStrategy from $300.00 to $510.00 and gave the company a “buy” rating in a report on Monday, November 25th. Finally, Maxim Group boosted their price target on shares of MicroStrategy from $193.00 to $270.00 and gave the stock a “buy” rating in a research note on Thursday, October 31st. One investment analyst has rated the stock with a sell rating and eight have assigned a buy rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $479.25.

MicroStrategy Stock Performance

The business has a fifty day simple moving average of $326.94 and a 200-day simple moving average of $211.42. The firm has a market cap of $85.84 billion, a P/E ratio of -169.99 and a beta of 3.17. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 1.12.

MicroStrategy (NASDAQ:MSTR) last announced its quarterly earnings data on Wednesday, October 30th. The software maker reported ($1.56) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.12) by ($1.44). MicroStrategy had a negative net margin of 87.05% and a negative return on equity of 17.31%. The company had revenue of $116.07 million for the quarter, compared to analysts’ expectations of $121.45 million. During the same quarter in the previous year, the firm posted ($8.98) EPS. The firm’s quarterly revenue was down 10.3% compared to the same quarter last year.

Insider Activity at MicroStrategy

In related news, CFO Andrew Kang sold 5,700 shares of MicroStrategy stock in a transaction dated Wednesday, November 6th. The stock was sold at an average price of $257.15, for a total value of $1,465,755.00. Following the completion of the sale, the chief financial officer now directly owns 12,080 shares in the company, valued at approximately $3,106,372. This trade represents a 32.06 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Jeanine Montgomery sold 752 shares of the company’s stock in a transaction dated Thursday, November 14th. The shares were sold at an average price of $322.45, for a total transaction of $242,482.40. Following the transaction, the chief accounting officer now owns 6,418 shares in the company, valued at $2,069,484.10. This represents a 10.49 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 102,000 shares of company stock valued at $32,259,177. 13.18% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MSTR. Geode Capital Management LLC raised its stake in MicroStrategy by 990.6% during the 3rd quarter. Geode Capital Management LLC now owns 2,766,283 shares of the software maker’s stock valued at $465,573,000 after buying an additional 2,512,645 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in MicroStrategy by 587.4% in the third quarter. Charles Schwab Investment Management Inc. now owns 664,261 shares of the software maker’s stock valued at $111,994,000 after acquiring an additional 567,628 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in MicroStrategy by 971.3% in the third quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 639,707 shares of the software maker’s stock worth $107,855,000 after purchasing an additional 579,994 shares during the last quarter. Swiss National Bank grew its stake in shares of MicroStrategy by 904.7% during the 3rd quarter. Swiss National Bank now owns 468,200 shares of the software maker’s stock valued at $78,939,000 after purchasing an additional 421,600 shares during the period. Finally, Sumitomo Mitsui Trust Group Inc. increased its position in shares of MicroStrategy by 1,077.0% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 343,164 shares of the software maker’s stock valued at $57,857,000 after purchasing an additional 314,007 shares during the last quarter. Institutional investors own 59.84% of the company’s stock.

About MicroStrategy

MicroStrategy Incorporated provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers MicroStrategy ONE, which provides non-technical users with the ability to directly access novel and actionable insights for decision-making; and MicroStrategy Cloud for Government service, which offers always-on threat monitoring that meets the rigorous technical and regulatory needs of governments and financial institutions.