MicroStrategy (NASDAQ:MSTR) Shares Down 1.7% After Earnings Miss

MicroStrategy Incorporated (NASDAQ:MSTR)’s stock price traded down 1.7% during mid-day trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $239.00 and last traded at $253.94. 7,569,446 shares traded hands during trading, a decline of 54% from the average session volume of 16,497,963 shares. The stock had previously closed at $258.24.

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 19.60% and a negative net margin of 87.05%. The firm had revenue of $116.07 million for the quarter, compared to the consensus estimate of $121.45 million. During the same quarter last year, the business earned ($8.98) earnings per share. The business’s revenue for the quarter was down 10.3% compared to the same quarter last year.

Analysts Set New Price Targets

MSTR has been the subject of several recent research reports. TD Cowen upped their price target on shares of MicroStrategy from $200.00 to $300.00 and gave the stock a “buy” rating in a research report on Thursday. Cantor Fitzgerald started coverage on shares of MicroStrategy in a research report on Wednesday, August 21st. They set an “overweight” rating and a $194.00 price target on the stock. Benchmark boosted their price objective on MicroStrategy from $245.00 to $300.00 and gave the stock a “buy” rating in a research note on Thursday. Canaccord Genuity Group boosted their price target on shares of MicroStrategy from $173.00 to $300.00 and gave the stock a “buy” rating in a research report on Thursday. Finally, Barclays lifted their price objective on shares of MicroStrategy from $173.00 to $225.00 and gave the stock an “overweight” rating in a research note on Monday, October 14th. 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, the company presently has a consensus rating of “Moderate Buy” and an average target price of $264.88.

Insiders Place Their Bets

In related news, CEO Phong Le sold 50,000 shares of the stock in a transaction on Thursday, August 22nd. The stock was sold at an average price of $138.28, for a total transaction of $6,914,000.00. Following the completion of the sale, the chief executive officer now directly owns 12,670 shares in the company, valued at approximately $1,752,007.60. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other MicroStrategy news, CEO Phong Le sold 50,000 shares of the stock in a transaction that occurred on Thursday, August 22nd. The stock was sold at an average price of $138.28, for a total transaction of $6,914,000.00. Following the transaction, the chief executive officer now owns 12,670 shares in the company, valued at $1,752,007.60. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Wei-Ming Shao sold 3,000 shares of MicroStrategy stock in a transaction on 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 owns 6,460 shares in the company, valued at $912,152. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 101,838 shares of company stock worth $13,950,265 in the last quarter. 13.18% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On MicroStrategy

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Thurston Springer Miller Herd & Titak Inc. bought a new stake in MicroStrategy during the second quarter worth about $37,000. GAMMA Investing LLC boosted its holdings in MicroStrategy by 36.4% in the second quarter. GAMMA Investing LLC now owns 30 shares of the software maker’s stock valued at $41,000 after acquiring an additional 8 shares during the last quarter. Allspring Global Investments Holdings LLC acquired a new position in MicroStrategy during the 1st quarter valued at about $58,000. FinTrust Capital Advisors LLC acquired a new position in MicroStrategy in the first quarter valued at approximately $85,000. Finally, Signaturefd LLC raised its position in shares of MicroStrategy by 13.6% during the 2nd quarter. Signaturefd LLC now owns 50 shares of the software maker’s stock valued at $69,000 after acquiring an additional 6 shares during the last quarter. 72.03% of the stock is currently owned by institutional investors.

MicroStrategy Trading Up 0.6 %

The firm has a 50 day simple moving average of $168.11 and a two-hundred day simple moving average of $152.28. The company has a quick ratio of 0.47, a current ratio of 0.47 and a debt-to-equity ratio of 1.31.

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.