MicroStrategy (NASDAQ:MSTR) Shares Down 4.8% After Analyst Downgrade

MicroStrategy Incorporated (NASDAQ:MSTR)’s stock price fell 4.8% during trading on Monday after Canaccord Genuity Group lowered their price target on the stock from $185.00 to $173.00. Canaccord Genuity Group currently has a buy rating on the stock. MicroStrategy traded as low as $133.44 and last traded at $134.67. 816,202 shares changed hands during mid-day trading, a decline of 95% from the average session volume of 16,329,228 shares. The stock had previously closed at $141.47.

Several other research firms have also commented on MSTR. Benchmark boosted their price target on MicroStrategy from $187.50 to $215.00 and gave the stock a “buy” rating in a research report on Friday, August 2nd. Maxim Group raised their price target on shares of MicroStrategy from $183.50 to $193.00 and gave the company a “buy” rating in a report on Friday, August 2nd. Cantor Fitzgerald started coverage on MicroStrategy in a research note on Wednesday, August 21st. They set an “overweight” rating and a $194.00 target price for the company. Barclays assumed coverage on MicroStrategy in a research report on Friday, September 6th. They issued an “overweight” rating and a $146.00 target price on the stock. Finally, Sanford C. Bernstein raised shares of MicroStrategy to a “strong-buy” rating in a research report on Friday, June 14th. One equities research analyst has rated the stock with a sell rating, seven have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, MicroStrategy currently has an average rating of “Moderate Buy” and a consensus target price of $197.25.

Insider Activity

In related news, CEO Phong Le sold 48,838 shares of the firm’s stock in a transaction on Friday, August 16th. The stock was sold at an average price of $135.40, for a total transaction of $6,612,665.20. Following the transaction, the chief executive officer now directly owns 12,670 shares in the company, valued at $1,715,518. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In related news, CEO Phong Le sold 48,838 shares of the business’s stock in a transaction dated Friday, August 16th. The shares were sold at an average price of $135.40, for a total transaction of $6,612,665.20. Following the completion of the sale, the chief executive officer now owns 12,670 shares of the company’s stock, valued at approximately $1,715,518. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Wei-Ming Shao sold 3,000 shares of the firm’s stock in a transaction dated Thursday, August 22nd. The stock was sold at an average price of $141.20, for a total transaction of $423,600.00. Following the completion of the transaction, the executive vice president now directly owns 6,460 shares in the company, valued at approximately $912,152. The disclosure for this sale can be found here. In the last ninety days, insiders sold 101,838 shares of company stock worth $13,950,265. 13.18% of the stock is currently owned by insiders.

Hedge Funds Weigh In On MicroStrategy

Several institutional investors have recently modified their holdings of the company. Newbridge Financial Services Group Inc. boosted its stake in MicroStrategy by 10.9% during the 2nd quarter. Newbridge Financial Services Group Inc. now owns 887 shares of the software maker’s stock valued at $1,222,000 after purchasing an additional 87 shares during the period. Sanctuary Advisors LLC acquired a new position in shares of MicroStrategy during the second quarter worth approximately $553,000. Gordian Capital Singapore Pte Ltd grew its holdings in MicroStrategy by 2,416.7% in the 2nd quarter. Gordian Capital Singapore Pte Ltd now owns 151 shares of the software maker’s stock worth $208,000 after buying an additional 145 shares in the last quarter. Strategic Investment Solutions Inc. IL acquired a new stake in MicroStrategy in the 2nd quarter valued at approximately $106,000. Finally, SRN Advisors LLC raised its stake in MicroStrategy by 16.1% during the 2nd quarter. SRN Advisors LLC now owns 2,122 shares of the software maker’s stock valued at $2,923,000 after acquiring an additional 294 shares in the last quarter. Institutional investors own 72.03% of the company’s stock.

MicroStrategy Stock Down 4.5 %

The company has a market cap of $23.97 billion, a price-to-earnings ratio of -20.01 and a beta of 3.10. The stock has a 50-day simple moving average of $142.01 and a 200-day simple moving average of $144.31. The company has a current ratio of 0.47, a quick ratio of 0.47 and a debt-to-equity ratio of 1.31.

MicroStrategy (NASDAQ:MSTR) last posted its quarterly earnings data on Thursday, August 1st. The software maker reported ($0.57) earnings per share for the quarter, missing the consensus estimate 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%. The business’s revenue for the quarter was down 7.4% compared to the same quarter last year. During the same period in the previous year, the company earned $0.15 EPS.

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.