MicroStrategy (NASDAQ:MSTR) Shares Gap Down – What’s Next?

MicroStrategy Incorporated (NASDAQ:MSTR) shares gapped down before the market opened on Tuesday . The stock had previously closed at $380.30, but opened at $367.85. MicroStrategy shares last traded at $375.66, with a volume of 3,892,744 shares changing hands.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on MSTR shares. Maxim Group lifted their target price on shares of MicroStrategy from $193.00 to $270.00 and gave the stock a “buy” rating in a research note on Thursday, October 31st. TD Cowen upped their target price on shares of MicroStrategy from $392.00 to $525.00 and gave the stock a “buy” rating in a research report on Monday, November 25th. Benchmark upped their target price on shares of MicroStrategy from $450.00 to $650.00 and gave the company a “buy” rating in a research note on Monday, November 25th. Barclays increased their price objective on shares of MicroStrategy from $275.00 to $515.00 and gave the stock an “overweight” rating in a research note on Monday, November 25th. Finally, Canaccord Genuity Group increased their price objective on shares of MicroStrategy from $300.00 to $510.00 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 MarketBeat, the stock 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 current ratio of 0.65 and a quick ratio of 0.65. The company has a 50-day simple moving average of $267.36 and a 200 day simple moving average of $188.77.

MicroStrategy (NASDAQ:MSTR) last issued its earnings results on Wednesday, October 30th. The software maker reported ($1.56) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.12) by ($1.44). The company 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% compared to the same quarter last year. During the same period last year, the business earned ($8.98) earnings per share.

Insider Buying and Selling

In other news, CAO Jeanine Montgomery sold 56,250 shares of the company’s stock in a transaction on Wednesday, November 6th. The stock was sold at an average price of $257.41, for a total value of $14,479,312.50. Following the sale, the chief accounting officer now directly owns 5,670 shares in the company, valued at $1,459,514.70. This represents a 90.84 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Stephen X. Graham sold 20,000 shares of the stock in a transaction dated Thursday, November 21st. The shares were 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 of the company’s stock, valued at $3,145,979.20. This represents a 74.16 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 102,000 shares of company stock worth $32,259,177 over the last 90 days. 13.18% of the stock is owned by insiders.

Hedge Funds Weigh In On MicroStrategy

Several large investors have recently made changes to their positions in MSTR. GAMMA Investing LLC grew its holdings in shares of MicroStrategy by 36.4% in the 2nd quarter. GAMMA Investing LLC now owns 30 shares of the software maker’s stock valued at $41,000 after acquiring an additional 8 shares in the last quarter. Signaturefd LLC raised its position in MicroStrategy by 13.6% during the second quarter. Signaturefd LLC now owns 50 shares of the software maker’s stock valued at $69,000 after purchasing an additional 6 shares in the last quarter. Strategic Investment Solutions Inc. IL bought a new stake in shares of MicroStrategy during the second quarter worth $106,000. Larson Financial Group LLC grew its stake in shares of MicroStrategy by 72.3% in the second quarter. Larson Financial Group LLC now owns 81 shares of the software maker’s stock worth $112,000 after purchasing an additional 34 shares during the last quarter. Finally, Ridgewood Investments LLC bought a new stake in MicroStrategy during the second quarter valued at $138,000. Institutional investors and hedge funds own 72.03% 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.