MicroStrategy (NASDAQ:MSTR) Trading Down 2.3% Following Weak Earnings

MicroStrategy Incorporated (NASDAQ:MSTR)’s stock price traded down 2.3% during mid-day trading on Thursday following a dissappointing earnings announcement. The company traded as low as $237.00 and last traded at $241.70. 9,023,287 shares changed hands during trading, a decline of 45% from the average session volume of 16,515,920 shares. The stock had previously closed at $247.31.

The software maker reported ($1.56) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($1.44). The company had revenue of $116.07 million for the quarter, compared to analysts’ expectations of $121.45 million. MicroStrategy had a negative net margin of 43.69% and a negative return on equity of 14.72%. The company’s revenue was down 10.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($8.98) earnings per share.

Analysts Set New Price Targets

A number of brokerages recently commented on MSTR. Benchmark upped their target price on MicroStrategy from $245.00 to $300.00 and gave the company a “buy” rating in a report on Thursday. TD Cowen lifted their target price on shares of MicroStrategy from $195.00 to $200.00 and gave the company a “buy” rating in a research note on Monday, September 23rd. Cantor Fitzgerald started coverage on shares of MicroStrategy in a research note on Wednesday, August 21st. They issued an “overweight” rating and a $194.00 price target for the company. Canaccord Genuity Group cut their price objective on MicroStrategy from $185.00 to $173.00 and set a “buy” rating on the stock in a research report on Monday, September 16th. Finally, Barclays increased their target price on MicroStrategy from $173.00 to $225.00 and gave the stock an “overweight” rating in a research report on Monday, October 14th. One equities research analyst has rated the stock with a sell rating and eight have assigned a buy rating to the company’s stock. According to data from MarketBeat, MicroStrategy currently has an average rating of “Moderate Buy” and a consensus target price of $236.50.

Insider Activity

In other MicroStrategy news, CEO Phong Le sold 48,838 shares of MicroStrategy stock in a transaction dated Friday, August 16th. The shares were sold at an average price of $135.40, for a total value of $6,612,665.20. Following the completion of the transaction, the chief executive officer now directly owns 12,670 shares of the company’s stock, valued at approximately $1,715,518. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In related news, EVP Wei-Ming Shao sold 3,000 shares of the 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 sale, the executive vice president now directly owns 6,460 shares of the company’s stock, valued at $912,152. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Phong Le sold 48,838 shares of the business’s stock in a transaction dated Friday, August 16th. The stock was sold at an average price of $135.40, for a total value of $6,612,665.20. Following the completion of the transaction, the chief executive officer now directly owns 12,670 shares of the company’s stock, valued at approximately $1,715,518. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 101,838 shares of company stock worth $13,950,265 over the last three months. 13.18% of the stock is currently owned by corporate insiders.

Institutional Trading of MicroStrategy

Large investors have recently made changes to their positions in the stock. PNC Financial Services Group Inc. boosted its holdings in MicroStrategy by 300.0% in the fourth quarter. PNC Financial Services Group Inc. now owns 124 shares of the software maker’s stock worth $78,000 after purchasing an additional 93 shares during the last quarter. Diversified Trust Co purchased a new stake in MicroStrategy during the first quarter valued at $655,000. Miracle Mile Advisors LLC purchased a new stake in MicroStrategy during the first quarter valued at $228,000. Allspring Global Investments Holdings LLC purchased a new position in MicroStrategy in the first quarter worth about $58,000. Finally, Kovack Advisors Inc. bought a new stake in shares of MicroStrategy during the 1st quarter valued at about $595,000. 72.03% of the stock is currently owned by institutional investors.

MicroStrategy Stock Down 1.9 %

The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.47 and a current ratio of 0.47. The stock has a market cap of $43.05 billion, a PE ratio of -173.14 and a beta of 3.11. The company’s 50-day moving average price is $168.11 and its 200 day moving average price is $152.28.

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.