MicroStrategy (NASDAQ:MSTR) Trading Down 3.4% – Should You Sell?

Shares of MicroStrategy Incorporated (NASDAQ:MSTR) traded down 3.4% on Tuesday . The stock traded as low as $335.07 and last traded at $335.92. 4,158,612 shares traded hands during trading, a decline of 79% from the average session volume of 19,695,057 shares. The stock had previously closed at $347.92.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the stock. Barclays boosted their target price 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. Benchmark reaffirmed a “buy” rating and set a $650.00 target price on shares of MicroStrategy in a report on Tuesday, January 14th. BTIG Research boosted their price target on MicroStrategy from $290.00 to $570.00 and gave the company a “buy” rating in a report on Thursday, November 21st. TD Cowen raised their price objective on MicroStrategy from $392.00 to $525.00 and gave the stock a “buy” rating in a research note on Monday, November 25th. Finally, Maxim Group boosted their target price on shares of MicroStrategy from $193.00 to $270.00 and gave the company 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. According to MarketBeat, MicroStrategy presently has an average rating of “Moderate Buy” and an average target price of $479.25.

MicroStrategy Price Performance

The company has a market capitalization of $80.49 billion, a P/E ratio of -159.40 and a beta of 3.25. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 1.12. The business has a 50 day simple moving average of $367.05 and a 200-day simple moving average of $245.76.

MicroStrategy (NASDAQ:MSTR) last issued its quarterly earnings data on Wednesday, October 30th. The software maker reported ($1.56) earnings per share for the quarter, missing the consensus estimate 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 firm had revenue of $116.07 million during the quarter, compared to the consensus estimate of $121.45 million. During the same quarter in the prior year, the business earned ($8.98) earnings per share. The company’s revenue for the quarter was down 10.3% compared to the same quarter last year.

Insider Buying and Selling

In related news, CAO Jeanine Montgomery sold 56,250 shares of the stock in a transaction dated Wednesday, November 6th. The shares were sold at an average price of $257.41, for a total value of $14,479,312.50. Following the completion of the transaction, the chief accounting officer now owns 5,670 shares in the company, valued at $1,459,514.70. This represents a 90.84 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Stephen X. Graham sold 20,000 shares of the business’s stock in a transaction dated Thursday, November 21st. The stock was sold at an average price of $451.36, for a total transaction of $9,027,200.00. Following the sale, the director now owns 6,970 shares in the company, valued at $3,145,979.20. This trade represents a 74.16 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 102,000 shares of company stock valued at $32,259,177 in the last three months. 9.16% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On MicroStrategy

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MSTR. Geode Capital Management LLC boosted its stake in MicroStrategy by 990.6% during the third 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 in the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in MicroStrategy by 587.4% in the 3rd 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 last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in MicroStrategy by 971.3% in the 3rd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 639,707 shares of the software maker’s stock valued at $107,855,000 after acquiring an additional 579,994 shares during the last quarter. Swiss National Bank grew its stake in shares of MicroStrategy by 904.7% in the 3rd quarter. Swiss National Bank now owns 468,200 shares of the software maker’s stock worth $78,939,000 after purchasing an additional 421,600 shares during the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. raised its holdings in shares of MicroStrategy by 21.0% in the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 415,098 shares of the software maker’s stock worth $120,221,000 after purchasing an additional 71,934 shares in the last quarter. 59.84% of the stock is owned by institutional investors.

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.