MicroStrategy (NASDAQ:MSTR) Shares Gap Down – Time to Sell?

MicroStrategy Incorporated (NASDAQ:MSTR)’s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $379.09, but opened at $366.47. MicroStrategy shares last traded at $366.95, with a volume of 3,407,643 shares traded.

Analysts Set New Price Targets

A number of analysts have recently commented on MSTR shares. Maxim Group boosted their target price on shares of MicroStrategy from $193.00 to $270.00 and gave the company a “buy” rating in a report on Thursday, October 31st. Sanford C. Bernstein restated an “outperform” rating and set a $600.00 price objective on shares of MicroStrategy in a research report on Thursday, December 12th. TD Cowen boosted their price objective on shares of MicroStrategy from $392.00 to $525.00 and gave the company a “buy” rating in a research report on Monday, November 25th. BTIG Research increased their target price on shares of MicroStrategy from $290.00 to $570.00 and gave the stock a “buy” rating in a report on Thursday, November 21st. Finally, Canaccord Genuity Group upped their price objective on MicroStrategy from $300.00 to $510.00 and gave the stock a “buy” rating in a research note on Monday, November 25th. One research analyst has rated the stock with a sell rating and eight have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, MicroStrategy currently has an average rating of “Moderate Buy” and an average target price of $479.25.

MicroStrategy Stock Down 2.8 %

The company has a market capitalization of $79.49 billion, a P/E ratio of -157.43 and a beta of 3.25. The company has a 50 day simple moving average of $349.26 and a two-hundred day simple moving average of $224.56. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 1.12.

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

Insider Activity at MicroStrategy

In other news, CFO Andrew Kang sold 5,700 shares of MicroStrategy stock in a transaction on Wednesday, November 6th. The stock was sold at an average price of $257.15, for a total transaction of $1,465,755.00. Following the completion of the sale, the chief financial officer now directly owns 12,080 shares in the company, valued at approximately $3,106,372. This trade represents a 32.06 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Jeanine Montgomery sold 56,250 shares of the company’s stock in a transaction dated Wednesday, November 6th. The stock was sold at an average price of $257.41, for a total transaction of $14,479,312.50. Following the completion of the transaction, the chief accounting officer now owns 5,670 shares in the company, valued at $1,459,514.70. This represents a 90.84 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 102,000 shares of company stock worth $32,259,177. Insiders own 13.18% of the company’s stock.

Institutional Investors Weigh In On MicroStrategy

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