MicroStrategy (NASDAQ:MSTR) Shares Down 5.1% - Should You Sell?

Key Points

• MicroStrategy's share price decreased by 5.1% to $381.44 after trading as low as $375.10 during the day, with trading volume down 61% from its average.
• Analyst sentiment is mixed, with one report upgrading the price target from $650 to $705 while other ratings range from "sell" to "strong buy," indicating a consensus rating of Moderate Buy.
• The company recently reported an EPS of ($16.49), significantly missing estimates, and has a negative net margin of 1,160.72%, along with a decline in revenue compared to the same quarter last year.

MicroStrategy Incorporated (NASDAQ:MSTR - Get Free Report)'s share price dropped 5.1% during mid-day trading on Friday . The company traded as low as $375.10 and last traded at $381.44. Approximately 6,160,994 shares were traded during mid-day trading, a decline of 61% from the average daily volume of 15,638,528 shares. The stock had previously closed at $401.86.

Wall Street Analyst Weigh In

MSTR has been the topic of a number of recent research reports. Benchmark raised their price target on shares of MicroStrategy from $650.00 to $705.00 and gave the stock a "buy" rating in a research report on Friday. Barclays reissued a "hold" rating on shares of MicroStrategy in a research note on Monday, May 19th. BTIG Research reissued a "buy" rating on shares of MicroStrategy in a research note on Wednesday, May 14th. Cowen reissued a "buy" rating on shares of MicroStrategy in a research note on Monday, July 14th. Finally, Monness Crespi & Hardt boosted their target price on shares of MicroStrategy from $175.00 to $200.00 and gave the company a "sell" rating in a research note on Tuesday, July 15th. One analyst has rated the stock with a sell rating, one has given a hold rating, eleven have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $535.75.

MicroStrategy Stock Performance

The company has a debt-to-equity ratio of 0.25, a current ratio of 0.66 and a quick ratio of 0.66. The firm has a market capitalization of $101.69 billion, a price-to-earnings ratio of -17.10 and a beta of 3.70. The firm's fifty day moving average is $395.08 and its 200 day moving average is $352.85.

MicroStrategy (NASDAQ:MSTR - Get Free Report) last posted its earnings results on Thursday, May 1st. The software maker reported ($16.49) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.02) by ($16.47). MicroStrategy had a negative net margin of 1,160.72% and a negative return on equity of 37.64%. The business had revenue of $111.07 million during the quarter, compared to analyst estimates of $116.66 million. During the same quarter last year, the firm earned ($0.83) earnings per share. MicroStrategy's revenue was down 3.6% compared to the same quarter last year.

Insiders Place Their Bets

In other MicroStrategy news, CAO Jeanine Montgomery purchased 5,000 shares of the stock in a transaction on Tuesday, July 29th. The shares were purchased at an average price of $90.00 per share, with a total value of $450,000.00. Following the acquisition, the chief accounting officer directly owned 5,000 shares of the company's stock, valued at $450,000. This represents a ∞ increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Jarrod M. Patten purchased 5,555 shares of the stock in a transaction on Tuesday, July 29th. The stock was acquired at an average cost of $90.00 per share, for a total transaction of $499,950.00. Following the acquisition, the director directly owned 5,555 shares in the company, valued at approximately $499,950. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last three months, insiders acquired 268,132 shares of company stock valued at $24,169,295 and sold 172,971 shares valued at $70,540,378. Corporate insiders own 8.46% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. American Century Companies Inc. raised its position in shares of MicroStrategy by 7.3% in the 4th quarter. American Century Companies Inc. now owns 24,415 shares of the software maker's stock valued at $7,071,000 after acquiring an additional 1,667 shares during the period. Sei Investments Co. raised its holdings in MicroStrategy by 39.3% during the 4th quarter. Sei Investments Co. now owns 11,972 shares of the software maker's stock worth $3,468,000 after buying an additional 3,376 shares during the period. Prudential Financial Inc. raised its holdings in MicroStrategy by 3.1% during the 4th quarter. Prudential Financial Inc. now owns 7,865 shares of the software maker's stock worth $2,278,000 after buying an additional 240 shares during the period. Schroder Investment Management Group raised its holdings in MicroStrategy by 9.0% during the 4th quarter. Schroder Investment Management Group now owns 12,491 shares of the software maker's stock worth $3,784,000 after buying an additional 1,030 shares during the period. Finally, O Shaughnessy Asset Management LLC raised its holdings in MicroStrategy by 150.9% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 9,384 shares of the software maker's stock worth $2,718,000 after buying an additional 5,644 shares during the period. 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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