MicroStrategy (NASDAQ:MSTR) Stock Price 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)'s share price dropped 2.6% during trading on Wednesday . The company traded as low as $386.66 and last traded at $383.99. Approximately 3,372,449 shares changed hands during trading, a decline of 78% from the average daily volume of 15,406,745 shares. The stock had previously closed at $394.39.

Analyst Ratings Changes

MSTR has been the subject of a number of research analyst reports. Cowen reissued a "buy" rating on shares of MicroStrategy in a report on Wednesday. Monness Crespi & Hardt upped their target price on MicroStrategy from $175.00 to $200.00 and gave the stock a "sell" rating in a report on Tuesday, July 15th. Benchmark reaffirmed a "buy" rating on shares of MicroStrategy in a report on Wednesday. Barclays reaffirmed a "hold" rating on shares of MicroStrategy in a report on Monday, May 19th. Finally, TD Cowen upped their target price on MicroStrategy from $590.00 to $680.00 and gave the stock a "buy" rating in a report on Tuesday, July 15th. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $552.50.

MicroStrategy Price Performance

The business has a 50-day simple moving average of $397.79 and a 200 day simple moving average of $353.57. The stock has a market cap of $106.68 billion, a P/E ratio of 34.35 and a beta of 3.76. The company has a current ratio of 0.68, a quick ratio of 0.68 and a debt-to-equity ratio of 0.17.

MicroStrategy (NASDAQ:MSTR - Get Free Report) last announced its earnings results on Thursday, July 31st. The software maker reported $32.60 EPS for the quarter, beating the consensus estimate of ($0.12) by $32.72. MicroStrategy had a return on equity of 18.83% and a net margin of 1,036.61%. The company had revenue of $114.49 million for the quarter, compared to analyst estimates of $112.68 million. During the same quarter in the prior year, the company earned ($5.74) EPS. The firm's revenue for the quarter was up 2.7% compared to the same quarter last year.

Insider Activity at MicroStrategy

In other MicroStrategy news, Director Jarrod M. Patten bought 5,555 shares of the business's stock in a transaction that occurred on Tuesday, July 29th. The shares were bought at an average price of $90.00 per share, for a total transaction of $499,950.00. Following the transaction, the director directly owned 5,555 shares in the company, valued at approximately $499,950. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Gregg Winiarski bought 10,000 shares of the business's stock in a transaction that occurred on Friday, August 8th. The shares were acquired at an average price of $97.65 per share, for a total transaction of $976,500.00. Following the transaction, the director owned 10,000 shares in the company, valued at $976,500. This represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last quarter, insiders have purchased 278,132 shares of company stock worth $25,145,795 and have sold 194,571 shares worth $78,995,024. 8.46% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On MicroStrategy

A number of hedge funds have recently added to or reduced their stakes in the company. Dunhill Financial LLC bought a new position in shares of MicroStrategy in the fourth quarter valued at $26,000. Safe Harbor Fiduciary LLC lifted its stake in shares of MicroStrategy by 820.0% in the fourth quarter. Safe Harbor Fiduciary LLC now owns 92 shares of the software maker's stock valued at $27,000 after buying an additional 82 shares in the last quarter. First United Bank & Trust bought a new position in shares of MicroStrategy in the first quarter valued at $29,000. Siemens Fonds Invest GmbH lifted its stake in shares of MicroStrategy by 6,992.7% in the fourth quarter. Siemens Fonds Invest GmbH now owns 119,654 shares of the software maker's stock valued at $33,000 after buying an additional 117,967 shares in the last quarter. Finally, MCF Advisors LLC purchased a new stake in shares of MicroStrategy in the second quarter worth approximately $35,000. Institutional investors and hedge funds own 59.84% of the company's stock.

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.

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