MongoDB (NASDAQ:MDB) Earns "Outperform" Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated its “outperform” rating on MongoDB and set a $465 price target, implying approximately 31% upside; analysts overall have a “Moderate Buy” consensus with an average target of $465.25.
• MongoDB exceeded quarterly expectations, reporting $1.90 in EPS versus $1.62 expected and $771.77 million in revenue versus $735.01 million forecast. Revenue grew 30.5% year over year.
• The stock carries notable risks, including its elevated valuation, thin 2.12% net margin, recent executive-transition concerns and $7.8 million of insider selling over the past 90 days.

MongoDB (NASDAQ:MDB - Get Free Report)'s stock had its "outperform" rating reiterated by investment analysts at Royal Bank Of Canada in a research report issued on Wednesday, Benzinga reports. They presently have a $465.00 price target on the stock. Royal Bank Of Canada's price target points to a potential upside of 31.21% from the company's current price.

Several other brokerages have also issued reports on MDB. DA Davidson reiterated a "buy" rating and issued a $465.00 target price on shares of MongoDB in a research report on Tuesday. Wells Fargo & Company boosted their price objective on shares of MongoDB from $375.00 to $475.00 and gave the stock an "overweight" rating in a report on Tuesday, August 25th. Guggenheim restated a "buy" rating and issued a $560.00 price objective on shares of MongoDB in a report on Tuesday. BMO Capital Markets lowered their price objective on shares of MongoDB from $450.00 to $420.00 and set an "outperform" rating for the company in a report on Wednesday. Finally, Needham & Company LLC restated a "buy" rating and issued a $430.00 price objective on shares of MongoDB in a report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $465.25.

MongoDB Stock Performance

Shares of NASDAQ:MDB opened at $354.39 on Wednesday. MongoDB has a 52-week low of $215.68 and a 52-week high of $473.10. The firm has a fifty day moving average of $387.97 and a 200 day moving average of $331.74. The firm has a market capitalization of $28.55 billion, a PE ratio of 500.76, a price-to-earnings-growth ratio of 35.95 and a beta of 1.58.

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

Insider Buying and Selling

In related news, Director Hope F. Cochran sold 1,000 shares of the company's stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $375.92, for a total transaction of $375,920.00. Following the completion of the sale, the director directly owned 28,326 shares in the company, valued at $10,648,309.92. This represents a 3.41% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Dwight A. Merriman sold 6,000 shares of the company's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $451.75, for a total transaction of $2,710,500.00. Following the sale, the director owned 452,896 shares of the company's stock, valued at $204,595,768. This represents a 1.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 17,000 shares of company stock valued at $7,792,320. Company insiders own 2.60% of the company's stock.

Institutional Investors Weigh In On MongoDB

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MDB. QRG Capital Management Inc. raised its holdings in MongoDB by 10.3% during the 2nd 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 during the last quarter. Envestnet Portfolio Solutions Inc. raised its holdings in MongoDB by 59.3% during the 2nd 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 during the last quarter. SkyView Investment Advisors LLC bought a new stake in MongoDB during the 2nd quarter valued at $252,000. Sequoia Financial Advisors LLC raised its holdings in MongoDB by 36.7% during the 2nd 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 during the last quarter. Finally, National Pension Service raised its holdings in MongoDB by 10.7% during the 2nd 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 during the last quarter. 89.29% of the stock is currently owned by institutional investors.

More MongoDB News

Here are the key news stories impacting MongoDB this week:

• Positive Sentiment: MongoDB launched MongoDB 9.0, which offers up to 2x higher throughput, 35% faster reads and 30% faster updates, along with Atlas Infinite, a deployment option designed to handle highly variable AI-driven demand. These capabilities could support Atlas adoption and enterprise workloads. MongoDB launches MongoDB 9.0 and Atlas Infinite
• Positive Sentiment: The company introduced Atlas Agent Engine, a platform combining execution, memory, retrieval and governance for production AI agents. MongoDB also partnered with Cognition, the developer of Devin, to help enterprises modernize legacy infrastructure for MongoDB Atlas. MongoDB launches Atlas Agent Engine
• Positive Sentiment: Analysts continue to see long-term upside. Needham reaffirmed a “buy” rating with a $430 target, while BMO Capital Markets and Stifel maintained bullish ratings despite reducing their targets to $420 and $385, respectively. Stephens assigned an “equal weight” rating with a $372 target.
• Neutral Sentiment: The board appointed former CEO Dev Ittycheria as interim chief executive and reaffirmed its third-quarter and full-year fiscal 2027 guidance, suggesting the leadership transition has not yet changed operating expectations. Investors will look for evidence of continuity at Investor Day and in upcoming results. MongoDB stock drops after CEO exit
• Negative Sentiment: Desai’s sudden exit, less than a year into his tenure and immediately before Investor Day, raised concerns about strategic continuity and execution. His move to Meta also creates a potential competitive threat because Meta’s enterprise platform may target the same developers and corporate customers as MongoDB. MongoDB falls after CEO Desai’s exit
• Negative Sentiment: The target-price reductions reflect greater uncertainty and a valuation that leaves limited room for execution mistakes. MongoDB’s elevated valuation and relatively thin net margin make the stock particularly sensitive to leadership, growth and competitive concerns.

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.