MicroStrategy (NASDAQ:MSTR) Stock Price Down 4.4% – Time to Sell?

MicroStrategy Incorporated (NASDAQ:MSTR)’s share price traded down 4.4% on Tuesday . The company traded as low as $387.93 and last traded at $390.60. 8,399,980 shares changed hands during trading, a decline of 55% from the average session volume of 18,791,889 shares. The stock had previously closed at $408.50.

Analyst Ratings Changes

MSTR has been the topic of a number of analyst reports. TD Cowen lifted their price target on MicroStrategy from $392.00 to $525.00 and gave the company a “buy” rating in a report on Monday, November 25th. Benchmark upped their target price on MicroStrategy from $450.00 to $650.00 and gave the company a “buy” rating in a research report on Monday, November 25th. Barclays raised their price target on MicroStrategy from $275.00 to $515.00 and gave the stock an “overweight” rating in a report on Monday, November 25th. Canaccord Genuity Group raised their price target on shares of MicroStrategy from $300.00 to $510.00 and gave the stock a “buy” rating in a report on Monday, November 25th. Finally, Cantor Fitzgerald assumed coverage on shares of MicroStrategy in a report on Wednesday, August 21st. They set an “overweight” rating and a $194.00 price objective on the stock. One equities research analyst has rated the stock with a sell rating and eight have assigned a buy rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $479.25.

MicroStrategy Price Performance

The firm has a market capitalization of $79.39 billion, a PE ratio of -185.12 and a beta of 3.17. The stock’s 50 day simple moving average is $308.06 and its two-hundred day simple moving average is $203.37. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.65 and a current ratio of 0.65.

MicroStrategy (NASDAQ:MSTR) last posted its quarterly earnings results on Wednesday, October 30th. The software maker reported ($1.56) 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 analysts’ expectations of $121.45 million. During the same quarter in the prior year, the firm earned ($8.98) EPS. The firm’s revenue was down 10.3% on a year-over-year basis.

Insider Activity at MicroStrategy

In related news, EVP Wei-Ming Shao sold 18,000 shares of MicroStrategy stock in a transaction that occurred 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 sale, the executive vice president now owns 6,460 shares in the company, valued at approximately $2,377,344.60. This trade represents a 73.59 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Stephen X. Graham sold 20,000 shares of the firm’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 transaction, the director now owns 6,970 shares of the company’s stock, valued at approximately $3,145,979.20. This represents a 74.16 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 102,000 shares of company stock worth $32,259,177. Insiders own 13.18% of the company’s stock.

Institutional Trading of MicroStrategy

Hedge funds have recently modified their holdings of the stock. Signaturefd LLC boosted its stake in shares of MicroStrategy by 13.6% in the 2nd quarter. Signaturefd LLC now owns 50 shares of the software maker’s stock valued at $69,000 after buying an additional 6 shares during the period. Strategic Investment Solutions Inc. IL purchased a new position in MicroStrategy in the second quarter valued at $106,000. Larson Financial Group LLC raised its stake in MicroStrategy by 72.3% in the second quarter. Larson Financial Group LLC now owns 81 shares of the software maker’s stock valued at $112,000 after buying an additional 34 shares in the last quarter. Ridgewood Investments LLC purchased a new stake in MicroStrategy during the 2nd quarter worth about $138,000. Finally, Semmax Financial Advisors Inc. boosted its position in shares of MicroStrategy by 900.0% during the 2nd quarter. Semmax Financial Advisors Inc. now owns 100 shares of the software maker’s stock worth $138,000 after acquiring an additional 90 shares in the last quarter. 59.84% of the stock is currently owned by institutional investors and hedge funds.

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.