MicroStrategy (NASDAQ:MSTR) Stock Price Down 6.9% – Here’s Why

MicroStrategy Incorporated (NASDAQ:MSTR) shares dropped 6.9% on Tuesday . The company traded as low as $343.46 and last traded at $352.82. Approximately 9,436,910 shares were traded during trading, a decline of 51% from the average daily volume of 19,324,588 shares. The stock had previously closed at $379.09.

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. TD Cowen raised their price objective on shares of MicroStrategy from $392.00 to $525.00 and gave the stock a “buy” rating in a report on Monday, November 25th. Benchmark reiterated a “buy” rating and issued a $650.00 price target on shares of MicroStrategy in a research report on Monday. Sanford C. Bernstein reissued an “outperform” rating and set a $600.00 price objective on shares of MicroStrategy in a report on Thursday, December 12th. Barclays raised their price objective on shares of MicroStrategy from $275.00 to $515.00 and gave the stock an “overweight” rating in a report on Monday, November 25th. Finally, Canaccord Genuity Group lifted their price target on MicroStrategy from $300.00 to $510.00 and gave the company a “buy” rating in a report on Monday, November 25th. One research analyst has rated the stock with a sell rating and eight have given a buy rating to the stock. Based on data from MarketBeat.com, MicroStrategy has an average rating of “Moderate Buy” and an average target price of $479.25.

MicroStrategy Stock Performance

The stock has a market cap of $81.41 billion, a P/E ratio of -161.22 and a beta of 3.25. The stock has a fifty day simple moving average of $345.91 and a 200-day simple moving average of $222.45. 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 announced its quarterly earnings results 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). MicroStrategy had a negative return on equity of 17.31% 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 period in the prior year, the business earned ($8.98) earnings per share. The company’s revenue for the quarter was down 10.3% compared to the same quarter last year.

Insider Activity

In related news, EVP Wei-Ming Shao sold 18,000 shares of the company’s stock in a transaction on Wednesday, November 13th. The shares were sold at an average price of $368.01, for a total value of $6,624,180.00. Following the completion of the transaction, the executive vice president now directly owns 6,460 shares of the company’s stock, valued at approximately $2,377,344.60. This represents a 73.59 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Jeanine Montgomery sold 752 shares of MicroStrategy stock in a transaction dated Thursday, November 14th. The shares were sold at an average price of $322.45, for a total value of $242,482.40. Following the completion of the sale, the chief accounting officer now directly owns 6,418 shares in the company, valued at $2,069,484.10. This represents a 10.49 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 102,000 shares of company stock worth $32,259,177 in the last 90 days. Corporate insiders own 13.18% of the company’s stock.

Institutional Investors Weigh In On MicroStrategy

Several institutional investors have recently bought and sold shares of the company. Strategic Investment Solutions Inc. IL acquired a new stake in shares of MicroStrategy in the second quarter valued at approximately $106,000. Semmax Financial Advisors Inc. grew its position in MicroStrategy by 900.0% in the second quarter. Semmax Financial Advisors Inc. now owns 100 shares of the software maker’s stock valued at $138,000 after purchasing an additional 90 shares in the last quarter. Versant Capital Management Inc increased its stake in MicroStrategy by 38.2% in the 4th quarter. Versant Capital Management Inc now owns 141 shares of the software maker’s stock valued at $41,000 after buying an additional 39 shares during the last quarter. UMB Bank n.a. lifted its position in MicroStrategy by 900.0% during 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 in the last quarter. Finally, AlphaMark Advisors LLC boosted its stake in shares of MicroStrategy by 2,900.0% during the 3rd quarter. AlphaMark Advisors LLC now owns 150 shares of the software maker’s stock worth $25,000 after buying an additional 145 shares during 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.