MicroStrategy (NASDAQ:MSTR) Shares Down 2.8% – Should You Sell?

MicroStrategy Incorporated (NASDAQ:MSTR) fell 2.8% on Thursday . The company traded as low as $317.22 and last traded at $331.70. 18,198,355 shares changed hands during trading, a decline of 19% from the average session volume of 22,519,609 shares. The stock had previously closed at $341.42.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the company. Canaccord Genuity Group increased their target price on MicroStrategy from $300.00 to $510.00 and gave the company a “buy” rating in a research note on Monday, November 25th. TD Cowen increased their price objective on shares of MicroStrategy from $392.00 to $525.00 and gave the company a “buy” rating in a research note on Monday, November 25th. Benchmark restated a “buy” rating and issued a $650.00 target price on shares of MicroStrategy in a research note on Monday. Barclays lifted their price target on MicroStrategy from $275.00 to $515.00 and gave the stock an “overweight” rating in a research note on Monday, November 25th. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating and set a $600.00 target price on shares of MicroStrategy in a report on Thursday, December 12th. One research analyst has rated the stock with a sell rating and eight have issued a buy rating to the company. 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 Performance

The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.65 and a current ratio of 0.65. The stock has a 50 day moving average of $349.26 and a 200 day moving average of $224.56. The stock has a market capitalization of $79.49 billion, a P/E ratio of -157.43 and a beta of 3.25.

MicroStrategy (NASDAQ:MSTR) last released its quarterly earnings data 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). The firm had revenue of $116.07 million during the quarter, compared to analyst estimates of $121.45 million. MicroStrategy had a negative return on equity of 17.31% and a negative net margin of 87.05%. The firm’s revenue was down 10.3% on a year-over-year basis. During the same period last year, the business earned ($8.98) EPS.

Insider Activity

In other MicroStrategy news, 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 transaction 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. This trade represents a 73.59 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Jeanine Montgomery sold 56,250 shares of the company’s stock in a transaction that occurred on 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 sale, the chief accounting officer now directly owns 5,670 shares of the company’s stock, valued at approximately $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. Over the last 90 days, insiders have sold 102,000 shares of company stock valued at $32,259,177. Insiders own 13.18% of the company’s stock.

Institutional Trading of MicroStrategy

A number of hedge funds and other institutional investors have recently modified their holdings of the company. First Hawaiian Bank bought a new position in shares of MicroStrategy during the 4th quarter valued at about $321,000. Stonehearth Capital Management LLC acquired a new position in MicroStrategy during the fourth quarter valued at $580,000. Burkett Financial Services LLC purchased a new position in MicroStrategy during the 4th quarter valued at about $72,000. CWA Asset Management Group LLC acquired a new position in shares of MicroStrategy in the 4th quarter valued at about $417,000. Finally, Nordea Investment Management AB lifted its position in shares of MicroStrategy by 28.9% in the fourth quarter. Nordea Investment Management AB now owns 14,505 shares of the software maker’s stock worth $4,395,000 after purchasing an additional 3,255 shares in the last quarter. 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.