MicroStrategy (NASDAQ:MSTR) Stock Price Down 4% – Should You Sell?

MicroStrategy Incorporated (NASDAQ:MSTR) fell 4% during trading on Wednesday . The stock traded as low as $376.85 and last traded at $373.64. 5,544,902 shares changed hands during trading, a decline of 72% from the average session volume of 19,481,021 shares. The stock had previously closed at $389.10.

Analyst Ratings Changes

A number of brokerages have recently weighed in on MSTR. Canaccord Genuity Group raised their price objective on shares of MicroStrategy from $300.00 to $510.00 and gave the company a “buy” rating in a report on Monday, November 25th. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $600.00 price target on shares of MicroStrategy in a report on Thursday, December 12th. TD Cowen increased their price objective on MicroStrategy from $392.00 to $525.00 and gave the company a “buy” rating in a report on Monday, November 25th. Barclays boosted their target price on MicroStrategy from $275.00 to $515.00 and gave the stock an “overweight” rating in a research note on Monday, November 25th. Finally, Maxim Group increased their price target on shares of MicroStrategy from $193.00 to $270.00 and gave the company a “buy” rating in a research note on Thursday, October 31st. One equities research analyst has rated the stock with a sell rating and eight have given a buy rating to the company. Based on data from MarketBeat, MicroStrategy has a consensus rating of “Moderate Buy” and a consensus price target of $479.25.

MicroStrategy Stock Performance

The stock has a market cap of $84.76 billion, a PE ratio of -167.85 and a beta of 3.25. The firm’s 50-day moving average is $367.53 and its 200 day moving average is $241.12. 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 announced its earnings results on Wednesday, October 30th. The software maker reported ($1.56) EPS 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 period in the previous year, the company posted ($8.98) earnings per share. MicroStrategy’s quarterly revenue was down 10.3% on a year-over-year basis.

Insider Buying and Selling

In other news, CAO Jeanine Montgomery sold 752 shares of the firm’s stock in a transaction that occurred on Thursday, November 14th. The stock was 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 of the company’s stock, valued at $2,069,484.10. This trade represents a 10.49 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Andrew Kang sold 5,700 shares of the stock in a transaction on Wednesday, November 6th. The stock was sold at an average price of $257.15, for a total value of $1,465,755.00. Following the completion of the transaction, the chief financial officer now owns 12,080 shares of the company’s stock, valued at $3,106,372. The trade was a 32.06 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 102,000 shares of company stock valued at $32,259,177 over the last three months. 9.16% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On MicroStrategy

Several institutional investors have recently made changes to their positions in MSTR. National Bank of Canada FI boosted its holdings in MicroStrategy by 746.2% during the third quarter. National Bank of Canada FI now owns 20,647 shares of the software maker’s stock worth $3,481,000 after buying an additional 18,207 shares in the last quarter. B. Riley Wealth Advisors Inc. acquired a new stake in shares of MicroStrategy in the 3rd quarter worth approximately $254,000. Wellington Management Group LLP increased its stake in MicroStrategy by 979.8% in the 3rd quarter. Wellington Management Group LLP now owns 6,727 shares of the software maker’s stock valued at $1,134,000 after purchasing an additional 6,104 shares in the last quarter. US Bancorp DE raised its holdings in MicroStrategy by 782.8% during the third quarter. US Bancorp DE now owns 4,255 shares of the software maker’s stock worth $717,000 after purchasing an additional 3,773 shares during the last quarter. Finally, Virtu Financial LLC boosted its position in MicroStrategy by 10,398.4% during the third quarter. Virtu Financial LLC now owns 224,245 shares of the software maker’s stock worth $37,808,000 after purchasing an additional 222,109 shares in the last quarter. 59.84% of the stock is currently owned by hedge funds and other institutional investors.

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.