MicroStrategy (NASDAQ:MSTR) Trading Up 3.6% - Here's What Happened

Key Points

• MicroStrategy's stock increased by 3.6% during trading, reaching a high of $395.45 before closing at $397.29, despite a significant drop in trading volume.
• Analysts have shown confidence in MicroStrategy, with Benchmark raising its target price from $650 to $705, and a consensus target price of $546.58 across multiple buy ratings.
• In recent insider activity, CFO Andrew Kang and Director Jarrod M. Patten purchased shares at an average cost of $90.00, indicating increased executive confidence in the company's future.

MicroStrategy Incorporated (NASDAQ:MSTR - Get Free Report) shot up 3.6% during trading on Thursday . The company traded as high as $395.45 and last traded at $397.29. 2,841,916 shares changed hands during trading, a decline of 82% from the average session volume of 15,532,711 shares. The stock had previously closed at $383.41.

Analyst Upgrades and Downgrades

MSTR has been the topic of a number of research reports. Benchmark boosted their target price on shares of MicroStrategy from $650.00 to $705.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. HC Wainwright initiated coverage on shares of MicroStrategy in a research note on Tuesday, April 29th. They issued a "buy" rating and a $480.00 price objective on the stock. Monness Crespi & Hardt boosted their price target on shares of MicroStrategy from $175.00 to $200.00 and gave the company a "sell" rating in a report on Tuesday, July 15th. Cantor Fitzgerald raised their target price on shares of MicroStrategy from $614.00 to $680.00 and gave the stock an "overweight" rating in a report on Monday, July 28th. Finally, UBS Group reaffirmed a "buy" rating on shares of MicroStrategy in a research report on Friday, May 16th. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $546.58.

MicroStrategy Price Performance

The stock has a market capitalization of $109.91 billion, a P/E ratio of 35.39 and a beta of 3.76. The business has a fifty day simple moving average of $395.86 and a 200-day simple moving average of $353.18. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.66 and a current ratio of 0.68.

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

Insider Activity at MicroStrategy

In other news, CFO Andrew Kang bought 2,800 shares of the firm's stock in a transaction on Tuesday, July 29th. The stock was acquired at an average cost of $90.00 per share, with a total value of $252,000.00. Following the completion of the transaction, the chief financial officer directly owned 2,800 shares of the company's stock, valued at $252,000. This represents a ∞ increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Jarrod M. Patten purchased 5,555 shares of the stock in a transaction dated Tuesday, July 29th. The stock was acquired at an average cost of $90.00 per share, for a total transaction of $499,950.00. Following the transaction, the director owned 5,555 shares of the company's stock, valued at approximately $499,950. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last ninety days, insiders bought 268,132 shares of company stock valued at $24,169,295 and sold 170,671 shares valued at $69,643,974. Insiders own 8.46% of the company's stock.

Hedge Funds Weigh In On MicroStrategy

Several hedge funds have recently bought and sold shares of the company. Franklin Resources Inc. lifted its position in MicroStrategy by 227.0% in the 4th quarter. Franklin Resources Inc. now owns 13,891 shares of the software maker's stock worth $4,023,000 after buying an additional 9,643 shares during the last quarter. Quadrant Capital Group LLC boosted its stake in shares of MicroStrategy by 855.6% in the 4th quarter. Quadrant Capital Group LLC now owns 86 shares of the software maker's stock valued at $25,000 after purchasing an additional 77 shares in the last quarter. Peapack Gladstone Financial Corp grew its holdings in shares of MicroStrategy by 5.3% during the 4th quarter. Peapack Gladstone Financial Corp now owns 2,475 shares of the software maker's stock valued at $717,000 after purchasing an additional 125 shares during the last quarter. Cerity Partners LLC raised its position in MicroStrategy by 90.3% in the 4th quarter. Cerity Partners LLC now owns 11,743 shares of the software maker's stock worth $3,314,000 after purchasing an additional 5,573 shares during the period. Finally, Shelton Capital Management bought a new stake in MicroStrategy in the fourth quarter worth $6,504,000. 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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