MicroStrategy (NASDAQ:MSTR) Shares Gap Down – What’s Next?

MicroStrategy Incorporated (NASDAQ:MSTR) gapped down prior to trading on Wednesday . The stock had previously closed at $258.24, but opened at $246.50. MicroStrategy shares last traded at $243.57, with a volume of 3,736,884 shares changing hands.

Analyst Ratings Changes

Several equities research analysts have issued reports on MSTR shares. BTIG Research raised their price target on MicroStrategy from $180.00 to $240.00 and gave the company a “buy” rating in a report on Monday, October 21st. Sanford C. Bernstein cut their price target on MicroStrategy from $2,890.00 to $290.00 and set an “outperform” rating for the company in a report on Wednesday, October 9th. TD Cowen raised their price target on MicroStrategy from $195.00 to $200.00 and gave the company a “buy” rating in a report on Monday, September 23rd. Benchmark raised their price target on MicroStrategy from $215.00 to $245.00 and gave the company a “buy” rating in a report on Friday, October 18th. Finally, Barclays increased their price objective on MicroStrategy from $173.00 to $225.00 and gave the stock an “overweight” rating in a research report on Monday, October 14th. One research analyst has rated the stock with a sell rating and eight have issued a buy rating to the company. Based on data from MarketBeat, MicroStrategy currently has a consensus rating of “Moderate Buy” and an average target price of $220.00.

MicroStrategy Stock Performance

The company has a debt-to-equity ratio of 1.31, a current ratio of 0.47 and a quick ratio of 0.47. The stock has a 50-day simple moving average of $165.99 and a 200-day simple moving average of $151.61. The stock has a market cap of $45.05 billion, a P/E ratio of -181.91 and a beta of 3.11.

MicroStrategy (NASDAQ:MSTR) last posted its quarterly earnings data on Thursday, August 1st. The software maker reported ($0.57) EPS for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.48). The company had revenue of $111.44 million during the quarter, compared to analyst estimates of $121.99 million. MicroStrategy had a negative return on equity of 14.72% and a negative net margin of 43.69%. MicroStrategy’s revenue was down 7.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.15 earnings per share.

Insider Buying and Selling

In other MicroStrategy news, EVP Wei-Ming Shao sold 3,000 shares of MicroStrategy stock in a transaction that occurred on Thursday, August 22nd. The stock was sold at an average price of $141.20, for a total value of $423,600.00. Following the completion of the sale, the executive vice president now directly owns 6,460 shares in the company, valued at approximately $912,152. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In related news, CEO Phong Le sold 50,000 shares of the company’s stock in a transaction on Thursday, August 22nd. The stock was sold at an average price of $138.28, for a total transaction of $6,914,000.00. Following the completion of the sale, the chief executive officer now owns 12,670 shares in the company, valued at approximately $1,752,007.60. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Wei-Ming Shao sold 3,000 shares of the company’s stock in a transaction on Thursday, August 22nd. The stock was sold at an average price of $141.20, for a total value of $423,600.00. Following the sale, the executive vice president now owns 6,460 shares of the company’s stock, valued at $912,152. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 101,838 shares of company stock valued at $13,950,265 over the last ninety days. 13.18% of the stock is owned by company insiders.

Institutional Investors Weigh In On MicroStrategy

Several institutional investors have recently bought and sold shares of MSTR. Vanguard Group Inc. grew its holdings in MicroStrategy by 34.8% during the first quarter. Vanguard Group Inc. now owns 1,553,048 shares of the software maker’s stock worth $2,647,263,000 after buying an additional 401,071 shares in the last quarter. International Assets Investment Management LLC boosted its position in MicroStrategy by 224,965.1% in the third quarter. International Assets Investment Management LLC now owns 238,569 shares of the software maker’s stock worth $40,223,000 after purchasing an additional 238,463 shares during the last quarter. Capital International Investors boosted its position in MicroStrategy by 14.9% in the first quarter. Capital International Investors now owns 1,791,564 shares of the software maker’s stock worth $3,053,828,000 after purchasing an additional 232,667 shares during the last quarter. National Pension Service boosted its position in MicroStrategy by 900.0% in the third quarter. National Pension Service now owns 245,000 shares of the software maker’s stock worth $41,307,000 after purchasing an additional 220,500 shares during the last quarter. Finally, Yong Rong HK Asset Management Ltd purchased a new position in MicroStrategy in the third quarter worth $35,558,000. Institutional investors own 72.03% 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.