MicroStrategy (NASDAQ:MSTR) Shares Down 3.1% - Should You Sell?

Key Points

• Shares of MicroStrategy (NASDAQ:MSTR) dropped 3.1% to last trade at $361.36, with trading volume significantly down by 71% from its average.
• Despite the decline, analysts maintain a mostly positive outlook with one "strong buy," eleven "buy," and one "sell" rating, and a consensus price target of $552.50.
• Recent transactions by insiders included significant purchases, with Director Gregg Winiarski buying 10,000 shares and CEO Phong Le acquiring 5,500 shares, signaling confidence in the company's future.

Shares of MicroStrategy Incorporated (NASDAQ:MSTR - Get Free Report) traded down 3.1% during trading on Friday . The stock traded as low as $360.72 and last traded at $361.36. 4,433,074 shares traded hands during mid-day trading, a decline of 71% from the average session volume of 15,390,868 shares. The stock had previously closed at $372.94.

Analyst Ratings Changes

A number of analysts recently weighed in on MSTR shares. Cowen reiterated a "buy" rating on shares of MicroStrategy in a research note on Wednesday. Monness Crespi & Hardt lifted their price target on shares of MicroStrategy from $175.00 to $200.00 and gave the stock a "sell" rating in a research note on Tuesday, July 15th. UBS Group reaffirmed a "buy" rating on shares of MicroStrategy in a report on Friday, May 16th. TD Cowen lifted their price objective on shares of MicroStrategy from $590.00 to $680.00 and gave the stock a "buy" rating in a report on Tuesday, July 15th. Finally, Canaccord Genuity Group reissued a "buy" rating on shares of MicroStrategy in a report on Monday, May 19th. One research analyst has rated the stock with a sell rating, one has issued a hold rating, eleven have given a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, MicroStrategy currently has an average rating of "Moderate Buy" and a consensus price target of $552.50.

MicroStrategy Stock Performance

The stock has a 50-day moving average of $398.11 and a 200 day moving average of $353.99. The company has a debt-to-equity ratio of 0.17, a current ratio of 0.68 and a quick ratio of 0.68. The stock has a market capitalization of $100.35 billion, a price-to-earnings ratio of 32.34 and a beta of 3.76.

MicroStrategy (NASDAQ:MSTR - Get Free Report) last issued its earnings results on Thursday, July 31st. The software maker reported $32.60 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.12) by $32.72. MicroStrategy had a return on equity of 18.83% and a net margin of 1,036.61%. The firm had revenue of $114.49 million for the quarter, compared to analysts' expectations of $112.68 million. During the same quarter last year, the business earned ($5.74) earnings per share. The company's revenue was up 2.7% compared to the same quarter last year.

Insiders Place Their Bets

In related news, Director Gregg Winiarski purchased 10,000 shares of the firm's stock in a transaction that occurred on Friday, August 8th. The shares were bought at an average price of $97.65 per share, for a total transaction of $976,500.00. Following the completion of the transaction, the director owned 10,000 shares of the company's stock, valued at approximately $976,500. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Phong Le acquired 5,500 shares of the business's stock in a transaction that occurred on Tuesday, July 29th. The shares were purchased at an average cost of $90.00 per share, with a total value of $495,000.00. Following the transaction, the chief executive officer directly owned 5,500 shares of the company's stock, valued at $495,000. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last three months, insiders purchased 278,132 shares of company stock worth $25,145,795 and sold 194,571 shares worth $78,995,024. Company insiders own 8.46% of the company's stock.

Hedge Funds Weigh In On MicroStrategy

A number of institutional investors and hedge funds have recently bought and sold shares of MSTR. MCF Advisors LLC acquired a new stake in shares of MicroStrategy in the second quarter valued at about $35,000. Dunhill Financial LLC bought a new stake in MicroStrategy during the fourth quarter worth $26,000. Maseco LLP bought a new stake in MicroStrategy during the second quarter worth $36,000. Safe Harbor Fiduciary LLC lifted its holdings in MicroStrategy by 820.0% during the fourth quarter. Safe Harbor Fiduciary LLC now owns 92 shares of the software maker's stock worth $27,000 after acquiring an additional 82 shares during the period. Finally, First United Bank & Trust bought a new stake in MicroStrategy during the first quarter worth $29,000. Institutional investors and hedge funds own 59.84% of the company's stock.

MicroStrategy Company Profile

Strategy Incorporated, formerly known as MicroStrategy, provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers Strategy ONE, a platform that allows non-technical users to access novel and actionable insights for decision-making, and Strategy Cloud for Government, which provides always-on threat monitoring designed to meet the strict technical and regulatory standards of governments and financial institutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.