MicroStrategy (NASDAQ:MSTR) Shares Down 4.4% - Here's What Happened

Key Points

• MicroStrategy's shares fell 4.4% on Thursday, trading as low as $374.10 with a notable decline in daily trading volume, down 74% from its average.
• Analyst ratings for MicroStrategy vary, with a consensus of "Moderate Buy" and a price target averaging around $552.50, while some analysts have issued both buy and sell ratings.
• Recently, insiders have sold significant shares; for instance, CFO Andrew Kang sold 18,750 shares at an average price of $395.00, representing a major decrease in his ownership stake.

MicroStrategy Incorporated (NASDAQ:MSTR - Get Free Report) shares dropped 4.4% during trading on Thursday . The company traded as low as $374.10 and last traded at $372.79. Approximately 4,043,169 shares were traded during trading, a decline of 74% from the average daily volume of 15,385,547 shares. The stock had previously closed at $389.90.

Analyst Ratings Changes

MSTR has been the subject of a number of analyst reports. HC Wainwright initiated coverage on shares of MicroStrategy in a report on Tuesday, April 29th. They set a "buy" rating and a $480.00 target price for the company. Cowen reaffirmed a "buy" rating on shares of MicroStrategy in a report on Wednesday. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of MicroStrategy in a report on Wednesday. BTIG Research boosted their price target on shares of MicroStrategy from $620.00 to $700.00 and gave the company a "buy" rating in a report on Friday, August 1st. Finally, Monness Crespi & Hardt boosted their price target on shares of MicroStrategy from $175.00 to $200.00 and gave the company a "sell" rating in a report on Tuesday, July 15th. One investment analyst has rated the stock with a sell rating, one has issued a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $552.50.

MicroStrategy Stock Down 6.0%

The stock has a market capitalization of $100.17 billion, a P/E ratio of 32.25 and a beta of 3.76. The firm's 50-day simple moving average is $398.03 and its 200 day simple moving average is $353.82. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.68 and a current ratio of 0.68.

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, beating the consensus estimate of ($0.12) by $32.72. The business had revenue of $114.49 million during the quarter, compared to the consensus estimate of $112.68 million. MicroStrategy had a net margin of 1,036.61% and a return on equity of 18.83%. MicroStrategy's revenue was up 2.7% on a year-over-year basis. During the same period last year, the business posted ($5.74) EPS.

Insider Transactions at MicroStrategy

In other MicroStrategy news, CFO Andrew Kang sold 18,750 shares of the stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $395.00, for a total transaction of $7,406,250.00. Following the transaction, the chief financial officer owned 24,460 shares in the company, valued at $9,661,700. This represents a 43.39% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Carl J. Rickertsen sold 26,390 shares of the stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $372.40, for a total transaction of $9,827,636.00. Following the transaction, the director owned 980 shares in the company, valued at approximately $364,952. The trade was a 96.42% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders purchased 278,132 shares of company stock worth $25,145,795 and sold 194,571 shares worth $78,995,024. Insiders own 8.46% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. MCF Advisors LLC acquired a new position in shares of MicroStrategy during the 2nd quarter worth approximately $35,000. Dunhill Financial LLC acquired a new stake in shares of MicroStrategy during the 4th quarter worth approximately $26,000. Maseco LLP acquired a new stake in shares of MicroStrategy during the 2nd quarter worth approximately $36,000. Safe Harbor Fiduciary LLC boosted its position in shares of MicroStrategy by 820.0% during the 4th quarter. Safe Harbor Fiduciary LLC now owns 92 shares of the software maker's stock worth $27,000 after acquiring an additional 82 shares in the last quarter. Finally, First United Bank & Trust acquired a new stake in shares of MicroStrategy during the 1st quarter worth approximately $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.

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