MicroStrategy (NASDAQ:MSTR) Shares Up 2.5% - Here's Why

Key Points

• MicroStrategy's shares increased by 2.5% during trading, reaching a peak of $407.10 before closing at $405.03, despite a significant drop in trading volume.
• Several analysts have raised their price targets for MicroStrategy, with Cantor Fitzgerald now estimating a target of $680.00 and the consensus target sitting at $531.17.
• Insider trading activity indicates confidence in the stock, with Director Peter L. Briger, Jr. acquiring 220,000 shares at an average price of $90.00 per share.

Shares of MicroStrategy Incorporated (NASDAQ:MSTR - Get Free Report) traded up 2.5% on Thursday . The stock traded as high as $407.10 and last traded at $405.03. 2,346,824 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 15,648,746 shares. The stock had previously closed at $395.04.

Analyst Ratings Changes

Several research analysts have weighed in on the company. Cowen reaffirmed a "buy" rating on shares of MicroStrategy in a research report on Monday, July 14th. Benchmark upped their target price on MicroStrategy from $650.00 to $705.00 and gave the stock a "buy" rating in a research report on Friday. Canaccord Genuity Group reaffirmed a "buy" rating on shares of MicroStrategy in a research report on Monday, May 19th. UBS Group reaffirmed a "buy" rating on shares of MicroStrategy in a research report on Friday, May 16th. Finally, BTIG Research reissued a "buy" rating on shares of MicroStrategy in a report on Wednesday, May 14th. One analyst has rated the stock with a sell rating, one has issued a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $535.75.

MicroStrategy Stock Performance

The firm has a 50 day moving average of $395.08 and a two-hundred day moving average of $352.85. The stock has a market cap of $103.88 billion, a P/E ratio of -17.48 and a beta of 3.70. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.66 and a current ratio of 0.66.

MicroStrategy (NASDAQ:MSTR - Get Free Report) last announced its earnings results on Thursday, May 1st. The software maker reported ($16.49) earnings per share for the quarter, missing the consensus estimate 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 for the quarter, compared to the consensus estimate of $116.66 million. During the same quarter in the previous year, the company earned ($0.83) EPS. MicroStrategy's revenue for the quarter was down 3.6% compared to the same quarter last year.

Insider Buying and Selling

In other news, EVP Wei-Ming Shao acquired 2,500 shares of MicroStrategy stock in a transaction on Tuesday, July 29th. The stock was bought at an average price of $90.00 per share, for a total transaction of $225,000.00. Following the transaction, the executive vice president owned 2,500 shares of the company's stock, valued at $225,000. The trade was a ∞ increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CAO Jeanine Montgomery acquired 5,000 shares of MicroStrategy stock in a transaction on Tuesday, July 29th. The stock was purchased at an average price of $90.00 per share, with a total value of $450,000.00. Following the transaction, the chief accounting officer directly owned 5,000 shares in the company, valued at approximately $450,000. This trade represents a ∞ increase in their position. The disclosure for this purchase can be found here. In the last three months, insiders have purchased 268,132 shares of company stock worth $24,169,295 and have sold 172,971 shares worth $70,540,378. Insiders own 8.46% of the company's stock.

Institutional Trading of MicroStrategy

Hedge funds have recently modified their holdings of the company. Selway Asset Management bought a new position in shares of MicroStrategy during the 4th quarter worth approximately $869,000. World Investment Advisors bought a new position in shares of MicroStrategy during the 4th quarter worth approximately $1,766,000. Aviva PLC lifted its position in shares of MicroStrategy by 51.2% during the 4th quarter. Aviva PLC now owns 94,953 shares of the software maker's stock worth $27,500,000 after buying an additional 32,171 shares during the period. Sei Investments Co. lifted its position in shares of 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. Finally, Hel Ved Capital Management Ltd bought a new position in shares of MicroStrategy during the 4th quarter worth approximately $2,495,000. 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.