MongoDB (NASDAQ:MDB) Stock Rating Reaffirmed as "Buy" by DA Davidson

Key Points

• DA Davidson reaffirmed its “Buy” rating on MongoDB and set a $465 price target, implying roughly 41% upside; analysts collectively rate the stock “Moderate Buy” with an average target of $471.81.
• MongoDB beat quarterly expectations, reporting $1.90 in earnings per share versus $1.62 expected and $771.77 million in revenue versus $735.01 million expected. Revenue increased 30.5% year over year.
• Despite bullish analyst sentiment and new AI-focused products, MongoDB faces risks from its elevated valuation, thin net margin and CEO transition; insiders have also sold $8.1 million of stock over the past three months.

MongoDB (NASDAQ:MDB - Get Free Report)'s stock had its "buy" rating reissued by DA Davidson in a research note issued on Tuesday, Benzinga reports. They presently have a $465.00 target price on the stock. DA Davidson's price target would indicate a potential upside of 40.97% from the stock's previous close.

Several other equities research analysts also recently weighed in on MDB. Monness Crespi & Hardt increased their price objective on MongoDB from $460.00 to $500.00 and gave the company a "buy" rating in a report on Wednesday, September 2nd. Needham & Company LLC restated a "buy" rating and set a $430.00 price target on shares of MongoDB in a research note on Wednesday, September 2nd. Weiss Ratings upgraded MongoDB from a "sell (d-)" rating to a "hold (c-)" rating in a research note on Wednesday, September 2nd. Mizuho set a $460.00 price target on MongoDB in a research note on Tuesday. Finally, Zacks Research upgraded MongoDB from a "hold" rating to a "strong-buy" rating in a research note on Thursday, September 3rd. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, MongoDB currently has an average rating of "Moderate Buy" and an average target price of $471.81.

MongoDB Price Performance

Shares of MDB stock traded down $4.82 during trading hours on Tuesday, hitting $329.86. The stock had a trading volume of 4,407,537 shares, compared to its average volume of 1,974,057. The firm has a market capitalization of $26.57 billion, a PE ratio of 463.98, a PEG ratio of 44.09 and a beta of 1.58. MongoDB has a twelve month low of $215.68 and a twelve month high of $473.10. The stock's 50 day moving average is $387.38 and its 200 day moving average is $331.27.

MongoDB (NASDAQ:MDB - Get Free Report) last posted its quarterly earnings data on Tuesday, September 1st. The company reported $1.90 earnings per share for the quarter, beating the consensus estimate of $1.62 by $0.28. The business had revenue of $771.77 million during the quarter, compared to the consensus estimate of $735.01 million. MongoDB had a return on equity of 1.06% and a net margin of 2.12%.The company's revenue was up 30.5% compared to the same quarter last year. During the same period in the prior year, the company earned $1.00 earnings per share. MongoDB has set its Q3 2027 guidance at 1.570-1.610 EPS and its FY 2027 guidance at 6.390-6.580 EPS. As a group, equities analysts predict that MongoDB will post 0.47 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Dwight A. Merriman sold 6,000 shares of the firm's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $451.75, for a total value of $2,710,500.00. Following the completion of the transaction, the director owned 452,896 shares in the company, valued at $204,595,768. This trade represents a 1.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Hope F. Cochran sold 1,000 shares of the firm's stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $375.92, for a total value of $375,920.00. Following the completion of the transaction, the director owned 28,326 shares of the company's stock, valued at approximately $10,648,309.92. This represents a 3.41% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 18,000 shares of company stock valued at $8,142,320. 2.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in MDB. QRG Capital Management Inc. increased its position in shares of MongoDB by 10.3% in the second quarter. QRG Capital Management Inc. now owns 1,341 shares of the company's stock valued at $450,000 after buying an additional 125 shares in the last quarter. Envestnet Portfolio Solutions Inc. increased its position in shares of MongoDB by 59.3% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 7,243 shares of the company's stock valued at $2,433,000 after buying an additional 2,697 shares in the last quarter. SkyView Investment Advisors LLC purchased a new position in shares of MongoDB in the second quarter valued at $252,000. Sequoia Financial Advisors LLC increased its position in shares of MongoDB by 36.7% in the second quarter. Sequoia Financial Advisors LLC now owns 2,610 shares of the company's stock valued at $877,000 after buying an additional 701 shares in the last quarter. Finally, National Pension Service increased its position in shares of MongoDB by 10.7% in the second quarter. National Pension Service now owns 153,687 shares of the company's stock valued at $51,623,000 after buying an additional 14,866 shares in the last quarter. Hedge funds and other institutional investors own 89.29% of the company's stock.

Key Stories Impacting MongoDB

Here are the key news stories impacting MongoDB this week:

• Positive Sentiment: MongoDB launched MongoDB 9.0, which it says delivers up to 2x higher throughput, 35% faster reads and 30% faster updates. It also introduced Atlas Infinite, a public-preview deployment option designed to scale rapidly during unpredictable AI-driven demand spikes. MongoDB launches MongoDB 9.0 and Atlas Infinite
• Positive Sentiment: The new Atlas Agent Engine combines execution, retrieval, persistent memory and governance for enterprise AI agents. The offering could help MongoDB capture more AI application workloads without requiring customers to assemble a separate technology stack. MongoDB launches Atlas Agent Engine
• Positive Sentiment: A partnership with Cognition, the developer of Devin, will offer tools to modernize legacy infrastructure and move customers toward MongoDB Atlas more quickly. This may support adoption and reduce barriers to enterprise migrations. Cognition and MongoDB partnership
• Neutral Sentiment: The board appointed former CEO Dev Ittycheria as interim CEO and reaffirmed fiscal 2027 guidance, suggesting management does not currently see a deterioration in demand. Analysts cited by 247WallSt believe the sell-off may be excessive and see substantial recovery potential, though execution remains important. Wall Street outlook for MongoDB
• Negative Sentiment: Desai’s immediate resignation, less than a year into his tenure and just before Investor Day, raised concerns about strategic continuity. His move to Meta also creates a potentially stronger competitor with knowledge of MongoDB’s products, customers and enterprise strategy. MongoDB CEO joins Meta
• Negative Sentiment: MongoDB’s elevated valuation and thin net margin leave limited room for execution setbacks. Investors will focus on the permanent CEO search, Atlas consumption growth and whether the leadership transition disrupts enterprise sales.

MongoDB Company Profile

MongoDB, Inc develops and provides a general-purpose, document-oriented database platform. Its technology is designed to help organizations store, manage and analyze structured and unstructured data for applications such as artificial intelligence, analytics, mobile services, e-commerce and enterprise software.

The company's principal offering is MongoDB Atlas, a fully managed cloud database service available across major cloud infrastructure providers. MongoDB also offers Enterprise Advanced, which provides commercial database software, security, operational controls and support for organizations running databases in their own environments or across hybrid and multicloud infrastructures.