MicroStrategy (NASDAQ:MSTR) Shares Down 0.7% – Should You Sell?

MicroStrategy Incorporated (NASDAQ:MSTR) shares dropped 0.7% on Friday . The company traded as low as $365.33 and last traded at $370.56. Approximately 7,256,417 shares changed hands during mid-day trading, a decline of 63% from the average daily volume of 19,633,740 shares. The stock had previously closed at $373.12.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on MSTR. Benchmark reissued a “buy” rating and set a $650.00 price objective on shares of MicroStrategy in a research report on Tuesday, January 14th. BTIG Research raised their price objective on MicroStrategy from $290.00 to $570.00 and gave the company a “buy” rating in a research note on Thursday, November 21st. Barclays boosted their target price on MicroStrategy from $275.00 to $515.00 and gave the stock an “overweight” rating in a report on Monday, November 25th. Sanford C. Bernstein reissued an “outperform” rating and issued a $600.00 price target on shares of MicroStrategy in a research report on Thursday, December 12th. Finally, TD Cowen boosted their price objective on shares of MicroStrategy from $392.00 to $525.00 and gave the stock a “buy” rating in a research note on Monday, November 25th. One analyst has rated the stock with a sell rating and eight have given a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $479.25.

MicroStrategy Price Performance

The firm has a market cap of $84.76 billion, a P/E ratio of -167.85 and a beta of 3.25. The stock’s 50-day moving average is $367.79 and its 200-day moving average is $243.47. 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 posted its quarterly earnings data on Wednesday, October 30th. The software maker reported ($1.56) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.12) by ($1.44). MicroStrategy had a negative return on equity of 17.31% and a negative net margin of 87.05%. The company had revenue of $116.07 million for the quarter, compared to the consensus estimate of $121.45 million. During the same quarter in the previous year, the firm posted ($8.98) EPS. The business’s revenue for the quarter was down 10.3% compared to the same quarter last year.

Insider Buying and Selling at MicroStrategy

In related news, Director Stephen X. Graham sold 20,000 shares of the company’s stock in a transaction on Thursday, November 21st. The stock was sold at an average price of $451.36, for a total value of $9,027,200.00. Following the completion of the transaction, the director now directly owns 6,970 shares in the company, valued at approximately $3,145,979.20. This represents a 74.16 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Andrew Kang sold 5,700 shares of the firm’s stock in a transaction on Wednesday, November 6th. The stock was sold at an average price of $257.15, for a total value of $1,465,755.00. Following the completion of the transaction, the chief financial officer now directly owns 12,080 shares of the company’s stock, valued at approximately $3,106,372. This trade represents a 32.06 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 102,000 shares of company stock valued at $32,259,177 in the last quarter. Corporate insiders own 9.16% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Cullinan Associates Inc. grew its stake in shares of MicroStrategy by 100.0% in the 4th quarter. Cullinan Associates Inc. now owns 10,000 shares of the software maker’s stock valued at $2,896,000 after purchasing an additional 5,000 shares during the period. Fiduciary Planning LLC bought a new stake in MicroStrategy in the fourth quarter valued at $423,000. Financial Partners Group Inc acquired a new position in MicroStrategy during the fourth quarter worth $247,000. S.A. Mason LLC bought a new position in shares of MicroStrategy during the fourth quarter valued at $113,000. Finally, Means Investment CO. Inc. lifted its holdings in shares of MicroStrategy by 2.2% during the fourth quarter. Means Investment CO. Inc. now owns 3,159 shares of the software maker’s stock valued at $915,000 after acquiring an additional 67 shares during the period. Institutional investors and hedge funds 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.