Needham & Company LLC Reaffirms Buy Rating for MongoDB (NASDAQ:MDB)

Key Points

• Needham reaffirmed its Buy rating on MongoDB and set a $430 price target, implying 27.52% upside; analysts collectively maintain a “Moderate Buy” consensus with an average target of $466.19.
• 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 increased 30.5% year over year.
• Despite institutional ownership of 89.29%, MongoDB faces investor concerns over its elevated valuation, thin profitability and recent CEO transition, while insiders have sold $7.79 million of stock over the past 90 days.

MongoDB (NASDAQ:MDB - Get Free Report)'s stock had its "buy" rating restated by analysts at Needham & Company LLC in a report issued on Wednesday, Benzinga reports. They presently have a $430.00 price objective on the stock. Needham & Company LLC's target price would indicate a potential upside of 27.52% from the company's previous close.

Other equities analysts have also recently issued research reports about the stock. Royal Bank Of Canada lowered their target price on shares of MongoDB from $515.00 to $465.00 and set an "outperform" rating on the stock in a research note on Wednesday, September 2nd. Sanford C. Bernstein raised their target price on shares of MongoDB from $449.00 to $484.00 and gave the company an "outperform" rating in a research note on Wednesday, September 2nd. Robert W. Baird raised their target price on shares of MongoDB from $335.00 to $400.00 and gave the company a "neutral" rating in a research note on Tuesday, August 25th. Scotiabank reissued an "outperform" rating on shares of MongoDB in a research note on Wednesday, September 2nd. Finally, Wall Street Zen raised shares of MongoDB from a "hold" rating to a "buy" rating in a research note on Saturday, September 5th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $466.19.

MongoDB Stock Performance

MongoDB stock opened at $337.19 on Wednesday. The firm's 50-day moving average is $387.97 and its 200-day moving average is $331.74. MongoDB has a 1 year low of $215.68 and a 1 year high of $473.10. The company has a market cap of $27.16 billion, a P/E ratio of 474.92, a PEG ratio of 35.95 and a beta of 1.58.

MongoDB (NASDAQ:MDB - Get Free Report) last posted its quarterly earnings results on Tuesday, September 1st. The company reported $1.90 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.62 by $0.28. The company had revenue of $771.77 million for the quarter, compared to the consensus estimate of $735.01 million. MongoDB had a net margin of 2.12% and a return on equity of 1.06%. The company's revenue for the quarter was up 30.5% on a year-over-year basis. During the same period last year, the firm posted $1.00 EPS. 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, sell-side analysts predict that MongoDB will post 0.47 earnings per share for the current year.

Insider Activity at MongoDB

In other news, Director Dwight A. Merriman sold 10,000 shares of MongoDB stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $470.59, for a total value of $4,705,900.00. Following the transaction, the director directly owned 962,953 shares of the company's stock, valued at $453,156,052.27. This trade represents a 1.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Hope F. Cochran sold 1,000 shares of MongoDB stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $375.92, for a total transaction of $375,920.00. Following the completion of the transaction, the director directly owned 28,326 shares in the company, valued at approximately $10,648,309.92. This trade represents a 3.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 17,000 shares of company stock worth $7,792,320 in the last ninety days. Corporate insiders own 2.60% of the company's stock.

Institutional Trading of MongoDB

Several institutional investors have recently made changes to their positions in the stock. QRG Capital Management Inc. lifted its stake in 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 acquiring an additional 125 shares during the last quarter. Envestnet Portfolio Solutions Inc. lifted its stake in 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 acquiring an additional 2,697 shares during the last quarter. SkyView Investment Advisors LLC acquired a new stake in shares of MongoDB in the second quarter worth $252,000. Sequoia Financial Advisors LLC boosted its holdings in MongoDB by 36.7% during the second quarter. Sequoia Financial Advisors LLC now owns 2,610 shares of the company's stock valued at $877,000 after acquiring an additional 701 shares during the period. Finally, National Pension Service boosted its stake 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 purchasing an additional 14,866 shares during the period. 89.29% of the stock is currently owned by institutional investors and hedge funds.

More MongoDB News

Here are the key news stories impacting MongoDB this week:

• Positive Sentiment: MongoDB unveiled MongoDB 9.0, Atlas Infinite and Atlas Agent Engine at its Investor Day. The company says MongoDB 9.0 offers up to twice the throughput, 35% faster reads and 30% faster updates, while Atlas Infinite is designed to scale rapidly for unpredictable AI workloads. MongoDB launches MongoDB 9.0 and Atlas Infinite
• Positive Sentiment: The partnership with Cognition, creator of Devin, is intended to help customers modernize legacy infrastructure faster and migrate workloads to MongoDB Atlas, potentially supporting enterprise adoption. Cognition and MongoDB partnership
• Positive Sentiment: MongoDB reaffirmed its fiscal 2027 third-quarter and full-year guidance following the CEO transition, suggesting that management does not currently see a material deterioration in demand. DA Davidson also maintained a Buy rating with a $465 price target. What's going on with MongoDB stock
• Neutral Sentiment: Former CEO Dev Ittycheria was named interim chief executive while MongoDB searches for a permanent successor. His prior experience leading the company provides continuity, but the search timeline and long-term strategy remain important investor concerns. MongoDB stock drops after CEO exit
• Negative Sentiment: CEO Chirantan “CJ” Desai left immediately to lead Meta’s new enterprise platform. Investors are concerned about execution, strategy and the loss of an executive who knows MongoDB’s products and customers; Meta’s initiative could also become a direct competitor. MongoDB CEO Desai steps down to lead Meta's enterprise platform
• Negative Sentiment: The selloff has intensified concerns about valuation. MongoDB trades at elevated earnings and sales multiples despite thin profitability, leaving limited room for execution setbacks or slower Atlas growth. Should you buy the dip in MongoDB stock

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.