MicroStrategy (NASDAQ:MSTR) Shares Gap Up - What's Next?

MicroStrategy Incorporated (NASDAQ:MSTR - Get Free Report) gapped up before the market opened on Tuesday . The stock had previously closed at $302.96, but opened at $316.96. MicroStrategy shares last traded at $305.58, with a volume of 4,332,128 shares traded.

Analysts Set New Price Targets

A number of research analysts recently commented on the company. Benchmark increased their price target on MicroStrategy from $450.00 to $650.00 and gave the company a "buy" rating in a report on Monday, November 25th. Sanford C. Bernstein reiterated an "outperform" rating and set a $600.00 target price on shares of MicroStrategy in a research note on Thursday, December 12th. Maxim Group lifted their price target on shares of MicroStrategy from $193.00 to $270.00 and gave the stock a "buy" rating in a research note on Thursday, October 31st. BTIG Research increased their price objective on shares of MicroStrategy from $290.00 to $570.00 and gave the company a "buy" rating in a research note on Thursday, November 21st. Finally, TD Cowen boosted their target price on shares of MicroStrategy from $392.00 to $525.00 and gave the stock a "buy" rating in a research report on Monday, November 25th. One analyst has rated the stock with a sell rating and eight have given a buy rating to the company. Based on data from MarketBeat.com, MicroStrategy has an average rating of "Moderate Buy" and a consensus price target of $479.25.

MicroStrategy Price Performance

The firm has a market capitalization of $69.41 billion, a price-to-earnings ratio of -137.46 and a beta of 3.17. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 1.12. The business has a 50-day moving average price of $337.14 and a two-hundred day moving average price of $216.41.

MicroStrategy (NASDAQ:MSTR - Get Free Report) last released its quarterly earnings data on Wednesday, October 30th. The software maker reported ($1.56) earnings per share for the quarter, missing analysts' consensus estimates of ($0.12) by ($1.44). The firm had revenue of $116.07 million during the quarter, compared to analyst estimates of $121.45 million. MicroStrategy had a negative return on equity of 17.31% and a negative net margin of 87.05%. The firm's revenue was down 10.3% on a year-over-year basis. During the same period last year, the business earned ($8.98) EPS.

Insider Activity

In other news, CAO Jeanine Montgomery sold 56,250 shares of the company's stock in a transaction that occurred on Wednesday, November 6th. The shares were sold at an average price of $257.41, for a total value of $14,479,312.50. Following the completion of the sale, the chief accounting officer now directly owns 5,670 shares of the company's stock, valued at approximately $1,459,514.70. This represents a 90.84 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Wei-Ming Shao sold 18,000 shares of the stock in a transaction that occurred on Wednesday, November 13th. The shares were sold at an average price of $368.01, for a total transaction of $6,624,180.00. Following the completion of the transaction, the executive vice president now owns 6,460 shares of the company's stock, valued at $2,377,344.60. This trade represents a 73.59 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 102,000 shares of company stock valued at $32,259,177. Insiders own 13.18% of the company's stock.

Institutional Investors Weigh In On MicroStrategy

A number of institutional investors have recently added to or reduced their stakes in MSTR. Principal Financial Group Inc. raised its stake in shares of MicroStrategy by 781.4% in the 3rd quarter. Principal Financial Group Inc. now owns 46,483 shares of the software maker's stock worth $7,837,000 after buying an additional 41,209 shares in the last quarter. B. Riley Wealth Advisors Inc. bought a new stake in MicroStrategy in the third quarter worth about $254,000. Beaird Harris Wealth Management LLC raised its position in MicroStrategy by 1,105.2% in the third quarter. Beaird Harris Wealth Management LLC now owns 4,640 shares of the software maker's stock worth $782,000 after acquiring an additional 4,255 shares in the last quarter. Franklin Resources Inc. lifted its holdings in MicroStrategy by 3.3% in the 3rd quarter. Franklin Resources Inc. now owns 4,248 shares of the software maker's stock valued at $716,000 after acquiring an additional 135 shares during the last quarter. Finally, Peapack Gladstone Financial Corp boosted its position in shares of MicroStrategy by 900.0% during the 3rd quarter. Peapack Gladstone Financial Corp now owns 2,350 shares of the software maker's stock valued at $396,000 after purchasing an additional 2,115 shares in the last quarter. 59.84% of the stock is currently owned by institutional investors and hedge funds.

About MicroStrategy

MicroStrategy Incorporated provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers MicroStrategy ONE, which provides non-technical users with the ability to directly access novel and actionable insights for decision-making; and MicroStrategy Cloud for Government service, which offers always-on threat monitoring that meets the rigorous technical and regulatory needs of governments and financial institutions.