MicroStrategy (NASDAQ:MSTR) Stock Price Down 7.6% – Should You Sell?

MicroStrategy Incorporated (NASDAQ:MSTR)’s share price was down 7.6% during mid-day trading on Thursday . The company traded as low as $285.58 and last traded at $288.84. Approximately 5,803,810 shares traded hands during trading, a decline of 67% from the average daily volume of 17,809,304 shares. The stock had previously closed at $312.54.

Wall Street Analysts Forecast Growth

A number of research firms have commented on MSTR. Keefe, Bruyette & Woods initiated coverage on shares of MicroStrategy in a report on Friday, February 7th. They issued an “outperform” rating and a $560.00 price target for the company. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $600.00 target price on shares of MicroStrategy in a research report on Thursday, December 12th. Mizuho assumed coverage on MicroStrategy in a report on Wednesday, January 29th. They issued an “outperform” rating and a $515.00 price target on the stock. Compass Point upgraded MicroStrategy to a “strong-buy” rating in a report on Wednesday, January 29th. Finally, Barclays lowered their target price on MicroStrategy from $515.00 to $421.00 and set an “overweight” rating on the stock in a research report on Monday, February 10th. One investment analyst has rated the stock with a sell rating, nine have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $508.09.

MicroStrategy Stock Down 9.7 %

The stock’s 50-day simple moving average is $308.52 and its 200-day simple moving average is $298.42. The company has a current ratio of 0.71, a quick ratio of 0.65 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $72.65 billion, a P/E ratio of -50.11 and a beta of 3.36.

MicroStrategy (NASDAQ:MSTR) last issued its quarterly earnings results on Wednesday, February 5th. The software maker reported ($3.20) EPS for the quarter, missing analysts’ consensus estimates of ($0.13) by ($3.07). MicroStrategy had a negative net margin of 251.73% and a negative return on equity of 19.01%.

Insider Activity at MicroStrategy

In other news, Director Leslie J. Rechan sold 15,000 shares of the stock in a transaction that occurred on Tuesday, March 25th. The shares were sold at an average price of $335.90, for a total transaction of $5,038,500.00. Following the completion of the transaction, the director now directly owns 4,970 shares of the company’s stock, valued at $1,669,423. This represents a 75.11 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Jeanine Montgomery sold 481 shares of MicroStrategy stock in a transaction that occurred on Monday, March 24th. The stock was sold at an average price of $329.27, for a total transaction of $158,378.87. Following the completion of the sale, the chief accounting officer now directly owns 7,805 shares in the company, valued at $2,569,952.35. This trade represents a 5.80 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders purchased 8,000 shares of company stock worth $680,000 and sold 22,998 shares worth $7,671,926. 9.16% of the stock is owned by company insiders.

Institutional Investors Weigh In On MicroStrategy

Several large investors have recently added to or reduced their stakes in the company. Geode Capital Management LLC grew its position in shares of MicroStrategy by 10.2% in the fourth quarter. Geode Capital Management LLC now owns 3,047,625 shares of the software maker’s stock valued at $881,470,000 after purchasing an additional 281,342 shares in the last quarter. Norges Bank bought a new position in shares of MicroStrategy in the fourth quarter valued at approximately $523,981,000. Northern Trust Corp grew its stake in MicroStrategy by 24.4% during the fourth quarter. Northern Trust Corp now owns 1,076,185 shares of the software maker’s stock valued at $311,685,000 after acquiring an additional 210,997 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in MicroStrategy by 25.4% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 802,464 shares of the software maker’s stock worth $232,410,000 after acquiring an additional 162,757 shares during the period. Finally, Charles Schwab Investment Management Inc. lifted its stake in MicroStrategy by 14.7% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 761,776 shares of the software maker’s stock worth $220,626,000 after purchasing an additional 97,515 shares in 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.