MicroStrategy (NASDAQ:MSTR) Stock Price Down 1.9% - Here's What Happened

Key Points

• MicroStrategy's stock price fell by 1.9% to $337.76, marking a significant decline in trading volume compared to its average session.
• Analyst ratings are mostly positive, with a Moderate Buy average rating and a price target of $552.50, despite one analyst issuing a Sell rating.
• The company reported strong quarterly earnings with $32.60 EPS, significantly exceeding consensus estimates and generating revenue of $114.49 million.

MicroStrategy Incorporated (NASDAQ:MSTR - Get Free Report) shares traded down 1.9% during mid-day trading on Thursday . The company traded as low as $337.20 and last traded at $337.76. 2,076,458 shares changed hands during mid-day trading, a decline of 86% from the average session volume of 15,333,157 shares. The stock had previously closed at $344.37.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. Mizuho increased their target price on shares of MicroStrategy from $563.00 to $586.00 and gave the stock an "outperform" rating in a research note on Monday, August 11th. Cowen restated a "buy" rating on shares of MicroStrategy in a report on Wednesday, August 13th. HC Wainwright began coverage on shares of MicroStrategy in a research report on Tuesday, April 29th. They set a "buy" rating and a $480.00 target price for the company. UBS Group restated a "buy" rating on shares of MicroStrategy in a research note on Friday, May 16th. Finally, Monness Crespi & Hardt raised their price target on MicroStrategy from $175.00 to $200.00 and gave the company a "sell" rating in a report on Tuesday, July 15th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $552.50.

MicroStrategy Trading Down 2.0%

The company has a debt-to-equity ratio of 0.17, a current ratio of 0.68 and a quick ratio of 0.68. The company has a market cap of $95.72 billion, a price-to-earnings ratio of 29.63 and a beta of 3.76. The business has a 50 day simple moving average of $395.43 and a 200 day simple moving average of $354.40.

MicroStrategy (NASDAQ:MSTR - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The software maker reported $32.60 EPS for the quarter, beating analysts' consensus estimates of ($0.12) by $32.72. MicroStrategy had a return on equity of 18.83% and a net margin of 1,036.61%.The business had revenue of $114.49 million during the quarter, compared to the consensus estimate of $112.68 million. During the same quarter in the prior year, the company posted ($5.74) earnings per share. The firm's revenue was up 2.7% on a year-over-year basis. MicroStrategy has set its FY 2025 guidance at 80.000-80.000 EPS.

Insider Activity

In other MicroStrategy news, Director Carl J. Rickertsen sold 26,390 shares of MicroStrategy stock in a transaction dated 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 directly owned 980 shares of the company's stock, valued at approximately $364,952. The trade was a 96.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Wei-Ming Shao sold 32,500 shares of MicroStrategy stock in a transaction dated Wednesday, July 9th. The stock was sold at an average price of $401.47, for a total value of $13,047,775.00. Following the completion of the transaction, the executive vice president directly owned 12,726 shares of the company's stock, valued at approximately $5,109,107.22. This trade represents a 71.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have purchased 278,132 shares of company stock worth $25,145,795 and have sold 188,933 shares worth $76,682,203. Insiders own 8.46% of the company's stock.

Hedge Funds Weigh In On MicroStrategy

Several institutional investors have recently bought and sold shares of MSTR. Norges Bank purchased a new position in MicroStrategy in the second quarter valued at approximately $1,203,062,000. Amundi boosted its position in MicroStrategy by 378.9% during the second quarter. Amundi now owns 1,783,982 shares of the software maker's stock valued at $717,660,000 after buying an additional 1,411,500 shares during the period. State Street Corp boosted its position in MicroStrategy by 9.9% during the second quarter. State Street Corp now owns 5,484,569 shares of the software maker's stock valued at $2,217,027,000 after buying an additional 495,278 shares during the period. Harvest Portfolios Group Inc. boosted its holdings in shares of MicroStrategy by 181.8% during the second quarter. Harvest Portfolios Group Inc. now owns 708,040 shares of the software maker's stock worth $286,211,000 after purchasing an additional 456,745 shares during the period. Finally, GAMMA Investing LLC lifted its holdings in MicroStrategy by 42,473.7% in the first quarter. GAMMA Investing LLC now owns 239,264 shares of the software maker's stock worth $68,973,000 after buying an additional 238,702 shares during the period. Hedge funds and other 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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