MicroStrategy (NASDAQ:MSTR) Trading Down 2.1% After Earnings Miss

MicroStrategy Incorporated (NASDAQ:MSTR)’s share price dropped 2.1% on Wednesday following a weaker than expected earnings announcement. The company traded as low as $340.16 and last traded at $340.96. Approximately 2,918,263 shares were traded during trading, a decline of 84% from the average daily volume of 18,110,059 shares. The stock had previously closed at $348.31.

The software maker reported ($3.20) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($3.07). MicroStrategy had a negative net margin of 87.05% and a negative return on equity of 17.31%.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on MSTR. BTIG Research increased their price target on shares of MicroStrategy from $290.00 to $570.00 and gave the stock a “buy” rating in a report on Thursday, November 21st. Keefe, Bruyette & Woods began coverage on shares of MicroStrategy in a research note on Friday. They issued an “outperform” rating and a $560.00 target price on the stock. Compass Point upgraded shares of MicroStrategy to a “strong-buy” rating in a research report on Wednesday, January 29th. Sanford C. Bernstein reiterated an “outperform” rating and issued a $600.00 price objective on shares of MicroStrategy in a research report on Thursday, December 12th. Finally, Maxim Group lifted their price objective on MicroStrategy from $480.00 to $500.00 and gave the company a “buy” rating in a research note on Thursday. One analyst has rated the stock with a sell rating, ten have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $546.30.

Insider Transactions at MicroStrategy

In other MicroStrategy news, Director Stephen X. Graham sold 20,000 shares of the business’s stock in a transaction on Thursday, November 21st. The shares were sold at an average price of $451.36, for a total value of $9,027,200.00. Following the sale, the director now owns 6,970 shares in the company, valued at $3,145,979.20. The trade was a 74.16 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Wei-Ming Shao sold 18,000 shares of the firm’s stock in a transaction dated Wednesday, November 13th. The shares were sold at an average price of $368.01, for a total value of $6,624,180.00. Following the transaction, the executive vice president now owns 6,460 shares of the company’s stock, valued at approximately $2,377,344.60. The trade was a 73.59 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 40,050 shares of company stock worth $16,314,110 in the last three months. Corporate insiders own 9.16% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Geode Capital Management LLC increased its holdings in shares of MicroStrategy by 990.6% in the 3rd quarter. Geode Capital Management LLC now owns 2,766,283 shares of the software maker’s stock worth $465,573,000 after buying an additional 2,512,645 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in MicroStrategy by 971.3% during 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 acquiring an additional 579,994 shares during the last quarter. Charles Schwab Investment Management Inc. raised its position in MicroStrategy by 587.4% during 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 purchasing an additional 567,628 shares during the period. Swiss National Bank lifted 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 valued at $78,939,000 after purchasing an additional 421,600 shares during the last quarter. Finally, Amundi boosted its holdings in shares of MicroStrategy by 262.8% in the 4th quarter. Amundi now owns 570,217 shares of the software maker’s stock worth $165,146,000 after purchasing an additional 413,028 shares during the period. 59.84% of the stock is currently owned by institutional investors.

MicroStrategy Trading Up 0.6 %

The company has a 50-day moving average price of $356.27 and a two-hundred day moving average price of $254.50. The stock has a market cap of $78.50 billion, a P/E ratio of -155.46 and a beta of 3.25. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 1.12.

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.