MicroStrategy (NASDAQ:MSTR) Shares Down 2% – Should You Sell?

MicroStrategy Incorporated (NASDAQ:MSTR)’s share price dropped 2% during trading on Tuesday . The stock traded as low as $367.76 and last traded at $388.53. Approximately 9,044,277 shares were traded during mid-day trading, a decline of 53% from the average daily volume of 19,132,512 shares. The stock had previously closed at $396.50.

Analysts Set New Price Targets

Several research analysts recently issued reports on the company. Canaccord Genuity Group lifted their target price on MicroStrategy from $300.00 to $510.00 and gave the company a “buy” rating in a research report on Monday, November 25th. Maxim Group upped their target price 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. BTIG Research raised their price target on shares of MicroStrategy from $290.00 to $570.00 and gave the company a “buy” rating in a research report on Thursday, November 21st. Barclays increased their price objective on shares of MicroStrategy from $275.00 to $515.00 and gave the company an “overweight” rating in a research note on Monday, November 25th. Finally, Benchmark reaffirmed a “buy” rating and issued a $650.00 target price on shares of MicroStrategy in a report on Tuesday, January 14th. One research analyst has rated the stock with a sell rating and eight have given a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $479.25.

MicroStrategy Price Performance

The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 1.12. The stock has a market cap of $95.86 billion, a PE ratio of -189.49 and a beta of 3.25. The business has a 50-day moving average price of $364.99 and a 200 day moving average price of $237.40.

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

Insider Activity at MicroStrategy

In other news, EVP Wei-Ming Shao sold 18,000 shares of the company’s stock in a transaction dated Wednesday, November 13th. The stock was sold at an average price of $368.01, for a total transaction of $6,624,180.00. Following the sale, the executive vice president now directly owns 6,460 shares in the company, valued at $2,377,344.60. This represents a 73.59 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Stephen X. Graham sold 20,000 shares of the 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 completion of the sale, the director now directly owns 6,970 shares in the company, valued at approximately $3,145,979.20. The trade was a 74.16 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 102,000 shares of company stock worth $32,259,177. Corporate insiders own 9.16% of the company’s stock.

Institutional Investors Weigh In On MicroStrategy

A number of institutional investors and hedge funds have recently made changes to their positions in the business. UMB Bank n.a. raised its position in MicroStrategy by 900.0% during the third quarter. UMB Bank n.a. now owns 150 shares of the software maker’s stock valued at $25,000 after purchasing an additional 135 shares in the last quarter. AlphaMark Advisors LLC raised its holdings in shares of MicroStrategy by 2,900.0% during the 3rd quarter. AlphaMark Advisors LLC now owns 150 shares of the software maker’s stock valued at $25,000 after buying an additional 145 shares in the last quarter. Capital Performance Advisors LLP purchased a new position in shares of MicroStrategy during the 3rd quarter valued at about $27,000. Sunbelt Securities Inc. boosted its stake in MicroStrategy by 900.0% in the third quarter. Sunbelt Securities Inc. now owns 160 shares of the software maker’s stock worth $27,000 after buying an additional 144 shares in the last quarter. Finally, ST Germain D J Co. Inc. grew its position in MicroStrategy by 900.0% during the third quarter. ST Germain D J Co. Inc. now owns 170 shares of the software maker’s stock valued at $29,000 after acquiring an additional 153 shares during the last quarter. Hedge funds and other institutional investors own 59.84% of the company’s stock.

MicroStrategy Company Profile

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.