MicroStrategy (NASDAQ:MSTR) Trading Up 3.7% After Analyst Upgrade

Key Points

• MicroStrategy's stock rose by 3.7% after Mizuho upgraded its price target from $563 to $586, maintaining an outperform rating.
• In the last quarter, MicroStrategy reported earnings of $32.60 per share, significantly exceeding analyst expectations of a ($0.12) loss.
• Recent insider trading showed CFO Andrew Kang sold 6,250 shares while CEO Phong Le purchased 5,500 shares, highlighting mixed sentiment among executives.

Shares of MicroStrategy Incorporated (NASDAQ:MSTR - Get Free Report) traded up 3.7% during trading on Monday after Mizuho raised their price target on the stock from $563.00 to $586.00. Mizuho currently has an outperform rating on the stock. MicroStrategy traded as high as $414.36 and last traded at $409.62. 4,547,837 shares traded hands during trading, a decline of 71% from the average session volume of 15,496,590 shares. The stock had previously closed at $395.13.

MSTR has been the subject of a number of other reports. HC Wainwright started coverage on MicroStrategy in a report on Tuesday, April 29th. They issued a "buy" rating and a $480.00 price target for the company. Benchmark lifted their price target on MicroStrategy from $650.00 to $705.00 and gave the company a "buy" rating in a report on Friday, August 1st. BTIG Research raised their price objective on MicroStrategy from $620.00 to $700.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Cowen restated a "buy" rating on shares of MicroStrategy in a research note on Monday, July 14th. Finally, Cantor Fitzgerald lifted their target price on MicroStrategy from $614.00 to $680.00 and gave the stock an "overweight" rating in a research report on Monday, July 28th. One analyst has rated the stock with a sell rating, one has given a hold rating, eleven have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $552.50.

Insider Buying and Selling

In related news, CFO Andrew Kang sold 6,250 shares of the company's stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $386.32, for a total value of $2,414,500.00. Following the completion of the transaction, the chief financial officer owned 24,460 shares of the company's stock, valued at approximately $9,449,387.20. This represents a 20.35% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Phong Le purchased 5,500 shares of the stock in a transaction that occurred on Tuesday, July 29th. The stock was acquired at an average cost of $90.00 per share, with a total value of $495,000.00. Following the acquisition, the chief executive officer owned 5,500 shares in the company, valued at $495,000. The trade was a ∞ increase in their position. The disclosure for this purchase can be found here. Over the last ninety days, insiders purchased 268,132 shares of company stock valued at $24,169,295 and sold 175,821 shares valued at $71,588,774. Company insiders own 8.46% of the company's stock.

Hedge Funds Weigh In On MicroStrategy

Institutional investors and hedge funds have recently bought and sold shares of the company. Quadrant Capital Group LLC boosted its holdings in 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 during the last quarter. Cerity Partners LLC lifted its stake in shares of MicroStrategy by 90.3% in the fourth quarter. Cerity Partners LLC now owns 11,743 shares of the software maker's stock valued at $3,314,000 after purchasing an additional 5,573 shares during the period. Advisory Services Network LLC purchased a new position in shares of MicroStrategy during the fourth quarter valued at approximately $319,000. Sterling Capital Management LLC increased its position in MicroStrategy by 61.7% during the fourth quarter. Sterling Capital Management LLC now owns 9,331 shares of the software maker's stock worth $2,702,000 after purchasing an additional 3,561 shares during the last quarter. Finally, Rockefeller Capital Management L.P. boosted its stake in shares of MicroStrategy by 73.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 66,518 shares of the software maker's stock valued at $19,265,000 after purchasing an additional 28,211 shares during the period. 59.84% of the stock is owned by hedge funds and other institutional investors.

MicroStrategy Stock Performance

The company has a current ratio of 0.68, a quick ratio of 0.68 and a debt-to-equity ratio of 0.17. The stock's 50-day moving average price is $397.09 and its 200-day moving average price is $352.96. The company has a market capitalization of $112.58 billion, a P/E ratio of 36.19 and a beta of 3.76.

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

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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