MicroStrategy (NASDAQ:MSTR) Trading Up 4% – Should You Buy?

Shares of MicroStrategy Incorporated (NASDAQ:MSTR) rose 4% on Monday . The stock traded as high as $429.40 and last traded at $425.20. Approximately 10,709,801 shares traded hands during mid-day trading, a decline of 43% from the average daily volume of 18,753,277 shares. The stock had previously closed at $408.67.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on MSTR. Sanford C. Bernstein restated an “outperform” rating and issued a $600.00 price objective on shares of MicroStrategy in a research note on Thursday, December 12th. TD Cowen increased their price target on shares of MicroStrategy from $392.00 to $525.00 and gave the company a “buy” rating in a research report on Monday, November 25th. Maxim Group lifted their price objective on shares of MicroStrategy from $193.00 to $270.00 and gave the stock a “buy” rating in a research report on Thursday, October 31st. Cantor Fitzgerald assumed coverage on shares of MicroStrategy in a research note on Wednesday, August 21st. They issued an “overweight” rating and a $194.00 target price on the stock. Finally, Benchmark raised their price target on shares of MicroStrategy from $450.00 to $650.00 and gave the stock a “buy” rating in a research note on Monday, November 25th. One research analyst has rated the stock with a sell rating and eight have issued a buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $479.25.

MicroStrategy Price Performance

The firm’s 50 day moving average price is $311.94 and its two-hundred day moving average price is $205.02. 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 stock has a market cap of $78.31 billion, a PE ratio of -183.14 and a beta of 3.17.

MicroStrategy (NASDAQ:MSTR) last released its quarterly earnings data 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 net margin of 87.05% and a negative return on equity of 17.31%. The business had revenue of $116.07 million during the quarter, compared to analysts’ expectations of $121.45 million. During the same quarter in the prior year, the firm posted ($8.98) earnings per share. The firm’s quarterly revenue was down 10.3% on a year-over-year basis.

Insider Activity at MicroStrategy

In related news, CAO Jeanine Montgomery sold 56,250 shares of the company’s stock in a transaction that occurred on Wednesday, November 6th. The shares were sold at an average price of $257.41, for a total transaction of $14,479,312.50. Following the sale, the chief accounting officer now owns 5,670 shares of the company’s stock, valued at approximately $1,459,514.70. This represents a 90.84 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Wei-Ming Shao sold 18,000 shares of the firm’s stock in a transaction on Wednesday, November 13th. The shares were sold at an average price of $368.01, for a total transaction 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. The trade was a 73.59 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 102,000 shares of company stock worth $32,259,177. 13.18% of the stock is owned by company insiders.

Hedge Funds Weigh In On MicroStrategy

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Signaturefd LLC raised its holdings 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 acquiring an additional 6 shares in the last quarter. Strategic Investment Solutions Inc. IL bought a new stake in MicroStrategy during the second quarter valued at approximately $106,000. Larson Financial Group LLC grew its stake in MicroStrategy by 72.3% in the 2nd quarter. Larson Financial Group LLC now owns 81 shares of the software maker’s stock worth $112,000 after buying an additional 34 shares in the last quarter. Ridgewood Investments LLC bought a new position in shares of MicroStrategy in the 2nd quarter worth $138,000. Finally, Semmax Financial Advisors Inc. raised 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 valued at $138,000 after buying an additional 90 shares in the last quarter. 59.84% of the stock is currently owned by hedge funds and other institutional investors.

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.