MicroStrategy (NASDAQ:MSTR) Stock Price Down 5.4% - What's Next?

On Monday, shares of MicroStrategy Incorporated (NASDAQ:MSTR) experienced a decline of 5.4%. The stock hit a low of $340.02 before closing at $344.61. During midday trading, a total of 5,958,322 shares were exchanged, representing a significant drop of 69% from the average trading volume of 18,958,391 shares. The previous closing price stood at $364.20.

Wall Street Analysts Forecast Growth

A variety of analysts have provided insights on MSTR shares. Canaccord Genuity Group has raised its price target from $300.00 to $510.00, maintaining a "buy" rating for the stock as of November 25th. Similarly, TD Cowen has increased its price target from $392.00 to $525.00 and also holds a "buy" rating. Barclays adjusted their expectation for MicroStrategy's shares from $275.00 to $515.00, giving it an "overweight" rating. BTIG Research raised their target from $290.00 to $570.00 while issuing a "buy" rating on November 21st. Additionally, Maxim Group lifted their price target from $193.00 to $270.00, providing a "buy" rating as of October 31st. In summary, one analyst recommends selling, while eight others have opted for a buying stance. As per data from MarketBeat.com, MicroStrategy currently enjoys an average rating of "Moderate Buy" with a consensus price target of $479.25.

Operating Performance

The current market capitalization for MicroStrategy stands at $70.40 billion, featuring a P/E ratio of -164.89 and a beta of 3.17. The company has a 50-day moving average of $321.05 and a 200-day moving average of $208.85. Financially, it holds a current ratio of 0.65, a quick ratio of 0.65, and a debt-to-equity ratio of 1.12.

In their most recent quarterly earnings report on October 30th, MicroStrategy reported an earnings per share (EPS) of ($1.56), missing market estimates that projected an EPS of ($0.12). The return on equity was negative at -17.31%, and the net margin was also down, sitting at -87.05%. The company's revenue reached $116.07 million for the quarter, which fell short of analyst expectations set at $121.45 million. This also represented a 10.3% reduction compared to the same quarter from the previous year.

Insider Activity

In a noteworthy insider transaction, Chief Accounting Officer Jeanine Montgomery sold 56,250 shares on November 6th at an average price of $257.41, totaling about $14.48 million. Post-sale, she holds 5,670 shares now valued around $1.46 million, marking a decrease of 90.84% in her stock holdings. Additionally, CEO Phong Le sold 1,252 shares on November 14th for about $403,707.40 at an average price of $322.45, reducing his ownership by 8.25%. Over the last 90 days, insiders have collectively sold 102,000 shares valued at approximately $32.26 million. Presently, company insiders hold 13.18% of the ownership in MicroStrategy.

Institutional Trading of MicroStrategy

Several institutional investors have made adjustments to their holdings in MicroStrategy's stock. UMB Bank n.a. has escalated its position by 900.0% during the third quarter, acquiring 150 shares valued at $25,000. AlphaMark Advisors LLC similarly increased its stake by 2,900.0% to own 150 shares worth $25,000 after purchasing an additional 145 shares. Capital Performance Advisors LLP also entered the market with a new position in the third quarter valued at approximately $27,000. Additionally, Sunbelt Securities Inc. grew its holdings by 900.0%, possessing 160 shares now worth $27,000. ST Germain D J Co. Inc. also ramped up its position, totaling 170 shares valued at $29,000. Following these transactions, 59.84% of MicroStrategy’s shares are now held by institutional investors.

Company Profile

MicroStrategy Incorporated specializes in providing artificial intelligence-powered enterprise analytics software and services across various regions including the United States, Europe, and the Middle East. The company's product offerings encompass MicroStrategy ONE, facilitating non-technical users in accessing actionable insights, as well as MicroStrategy Cloud for Government, delivering constant threat monitoring tailored to fulfill stringent technical and regulatory standards.

Future Outlook

As investors and analysts observe the fluctuating prices and ongoing developments within the company, the question remains: what’s next for MicroStrategy? The stock's trajectory will likely depend on market conditions, ongoing institutional interest, and responses to its forthcoming earnings reports.

MicroStrategy, Stock, Analysis