MicroStrategy (NASDAQ:MSTR) Trading Down 2.6% - Here's What Happened

Key Points

• MicroStrategy's stock price fell by 2.6% to close at $383.99, with trading volume down 78% from the average.
• Analysts have mixed ratings on MicroStrategy, with a consensus rating of "Moderate Buy" and a target price of $552.50.
• Insider trading activity indicates confidence, as two directors purchased a total of 15,555 shares recently, showcasing a significant increase in their ownership stakes.

MicroStrategy Incorporated (NASDAQ:MSTR - Get Free Report) traded down 2.6% on Wednesday . The stock traded as low as $386.66 and last traded at $383.99. 3,372,449 shares changed hands during trading, a decline of 78% from the average session volume of 15,406,745 shares. The stock had previously closed at $394.39.

Wall Street Analysts Forecast Growth

MSTR has been the subject of several research analyst reports. Monness Crespi & Hardt boosted their price objective on MicroStrategy from $175.00 to $200.00 and gave the stock a "sell" rating in a research report on Tuesday, July 15th. UBS Group reaffirmed a "buy" rating on shares of MicroStrategy in a research report on Friday, May 16th. Cowen reaffirmed a "buy" rating on shares of MicroStrategy in a research report on Wednesday. Benchmark reaffirmed a "buy" rating on shares of MicroStrategy in a research report on Wednesday. Finally, TD Cowen lifted their price target on MicroStrategy from $590.00 to $680.00 and gave the stock a "buy" rating in a research report on Tuesday, July 15th. One investment 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 stock. Based on data from MarketBeat, MicroStrategy currently has a consensus rating of "Moderate Buy" and an average price target of $552.50.

MicroStrategy Stock Down 1.8%

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 stock has a market capitalization of $100.15 billion, a P/E ratio of 32.25 and a beta of 3.76. The firm has a 50 day moving average of $397.95 and a 200-day moving average of $354.29.

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

Insider Activity at MicroStrategy

In other MicroStrategy news, CFO Andrew Kang sold 18,750 shares of MicroStrategy stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $395.00, for a total transaction of $7,406,250.00. Following the sale, the chief financial officer directly owned 24,460 shares of the company's stock, valued at approximately $9,661,700. The trade was a 43.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Phong Le acquired 5,500 shares of the firm's stock in a transaction on Tuesday, July 29th. The shares were bought at an average cost of $90.00 per share, for a total transaction of $495,000.00. Following the completion of the acquisition, the chief executive officer directly owned 5,500 shares of the company's stock, valued at approximately $495,000. This represents a ∞ increase in their position. The disclosure for this purchase can be found here. In the last ninety days, insiders acquired 278,132 shares of company stock valued at $25,145,795 and sold 194,571 shares valued at $78,995,024. Company insiders own 8.46% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Binnacle Investments Inc boosted its holdings in shares of MicroStrategy by 492.9% in the 2nd quarter. Binnacle Investments Inc now owns 83 shares of the software maker's stock worth $34,000 after acquiring an additional 69 shares in the last quarter. MCF Advisors LLC acquired a new position in shares of MicroStrategy in the 2nd quarter worth approximately $35,000. Dunhill Financial LLC acquired a new position in shares of MicroStrategy in the 4th quarter worth approximately $26,000. Maseco LLP acquired a new position in shares of MicroStrategy in the 2nd quarter worth approximately $36,000. Finally, Safe Harbor Fiduciary LLC boosted its holdings in shares of MicroStrategy by 820.0% in the 4th quarter. Safe Harbor Fiduciary LLC now owns 92 shares of the software maker's stock worth $27,000 after acquiring an additional 82 shares in the last quarter. 59.84% of the stock is owned by institutional investors and hedge funds.

About MicroStrategy

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.