MicroStrategy (NASDAQ:MSTR) Shares Down 6.4% - Should You Sell?

MicroStrategy Incorporated (NASDAQ:MSTR - Get Free Report) dropped 6.4% during mid-day trading on Tuesday . The company traded as low as $376.80 and last traded at $378.31. Approximately 8,252,231 shares changed hands during mid-day trading, a decline of 54% from the average daily volume of 17,866,925 shares. The stock had previously closed at $404.23.

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Barclays reissued a "hold" rating on shares of MicroStrategy in a report on Monday, May 19th. Cantor Fitzgerald reissued a "hold" rating on shares of MicroStrategy in a research note on Monday, May 19th. BTIG Research restated a "buy" rating on shares of MicroStrategy in a report on Wednesday, May 14th. Canaccord Genuity Group reaffirmed a "buy" rating on shares of MicroStrategy in a research note on Monday, May 19th. Finally, HC Wainwright began coverage on MicroStrategy in a research report on Tuesday, April 29th. They set a "buy" rating and a $480.00 target price for the company. One investment analyst has rated the stock with a sell rating, two have issued a hold rating, nine have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $514.42.

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 business has a 50-day moving average of $383.60 and a 200-day moving average of $340.73. The company has a market capitalization of $102.06 billion, a P/E ratio of -17.11 and a beta of 3.74.

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

Insider Activity

In related news, CFO Andrew Kang sold 5,638 shares of the business's stock in a transaction on Tuesday, May 20th. The stock was sold at an average price of $410.22, for a total transaction of $2,312,820.36. Following the completion of the transaction, the chief financial officer owned 22,077 shares in the company, valued at $9,056,426.94. The trade was a 20.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Jarrod M. Patten bought 10,000 shares of the firm's stock in a transaction dated Tuesday, May 27th. The shares were acquired at an average price of $101.38 per share, with a total value of $1,013,800.00. Following the completion of the transaction, the director owned 10,000 shares of the company's stock, valued at approximately $1,013,800. The trade was a ∞ increase in their position. The disclosure for this purchase can be found here. In the last 90 days, insiders have purchased 25,277 shares of company stock valued at $2,312,345 and have sold 70,621 shares valued at $25,935,717. Corporate insiders own 8.46% of the company's stock.

Institutional Investors Weigh In On MicroStrategy

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. AG2R LA Mondiale Gestion D Actifs purchased a new position in shares of MicroStrategy during the first quarter worth approximately $2,501,000. Swedbank AB bought a new stake in MicroStrategy during the 1st quarter valued at $17,352,000. Strs Ohio bought a new stake in MicroStrategy during the 1st quarter valued at $905,000. Titleist Asset Management LLC lifted its holdings in shares of MicroStrategy by 208.9% in the 1st quarter. Titleist Asset Management LLC now owns 19,720 shares of the software maker's stock worth $5,685,000 after buying an additional 13,337 shares during the period. Finally, Gordian Capital Singapore Pte Ltd grew its position in shares of MicroStrategy by 11.0% during the 1st quarter. Gordian Capital Singapore Pte Ltd now owns 1,010 shares of the software maker's stock worth $292,000 after buying an additional 100 shares in the last quarter. Institutional investors 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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