MongoDB (NASDAQ:MDB) Shares Down 5.2% - What's Next?

Key Points

• MongoDB shares fell 5.2% on Tuesday, trading around $306.43 after closing at $323.36, with volume well below average.
• Despite the stock drop, Wall Street remains largely bullish: several analysts recently raised price targets, and the consensus rating is “Moderate Buy” with an average target of $405.35.
• The company’s latest earnings beat expectations, reporting $1.32 EPS on revenue of $687.62 million, while revenue grew 25.2% year over year; however, insiders have also been selling shares recently.

MongoDB, Inc. (NASDAQ:MDB - Get Free Report) traded down 5.2% during trading on Tuesday . The company traded as low as $306.22 and last traded at $306.4270. Approximately 933,882 shares changed hands during trading, a decline of 52% from the average session volume of 1,941,489 shares. The stock had previously closed at $323.36.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on MDB shares. Needham & Company LLC boosted their price target on shares of MongoDB from $400.00 to $430.00 and gave the stock a "buy" rating in a research report on Friday, July 10th. Mizuho lifted their price objective on shares of MongoDB from $325.00 to $400.00 and gave the stock an "outperform" rating in a research note on Friday, May 29th. Citigroup reissued a "buy" rating on shares of MongoDB in a research note on Monday, June 8th. Bank of America upped their target price on shares of MongoDB from $390.00 to $450.00 and gave the company a "buy" rating in a research report on Monday, June 8th. Finally, KGI Securities initiated coverage on MongoDB in a research note on Wednesday, July 8th. They issued an "outperform" rating and a $470.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $405.35.

MongoDB Stock Down 5.0%

The company has a market cap of $24.70 billion, a P/E ratio of -827.94, a P/E/G ratio of 1,126.44 and a beta of 1.55. The business's 50 day moving average is $337.09 and its 200 day moving average is $322.70.

MongoDB (NASDAQ:MDB - Get Free Report) last posted its quarterly earnings data on Thursday, May 28th. The company reported $1.32 EPS for the quarter, topping the consensus estimate of $1.19 by $0.13. The firm had revenue of $687.62 million during the quarter, compared to analyst estimates of $664.53 million. MongoDB had a negative net margin of 1.12% and a negative return on equity of 1.39%. MongoDB's revenue was up 25.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.00 EPS. MongoDB has set its FY 2027 guidance at 5.950-6.140 EPS and its Q2 2027 guidance at 1.580-1.610 EPS. As a group, equities research analysts forecast that MongoDB, Inc. will post 0.02 EPS for the current year.

Insider Transactions at MongoDB

In other MongoDB news, Director Dev Ittycheria sold 40,000 shares of the stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $383.16, for a total transaction of $15,326,400.00. Following the transaction, the director owned 161,762 shares in the company, valued at approximately $61,980,727.92. This represents a 19.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Michael J. Berry sold 5,000 shares of MongoDB stock in a transaction on Monday, June 15th. The shares were sold at an average price of $356.63, for a total transaction of $1,783,150.00. Following the completion of the sale, the chief financial officer directly owned 1,500 shares in the company, valued at $534,945. This represents a 76.92% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 127,746 shares of company stock worth $47,343,538 over the last quarter. Company insiders own 2.60% of the company's stock.

Institutional Trading of MongoDB

Institutional investors have recently modified their holdings of the company. ValueAct Holdings L.P. lifted its stake in shares of MongoDB by 206.8% in the third quarter. ValueAct Holdings L.P. now owns 2,118,200 shares of the company's stock worth $657,447,000 after acquiring an additional 1,427,700 shares in the last quarter. State Street Corp raised its stake in MongoDB by 2.3% during the fourth quarter. State Street Corp now owns 1,796,847 shares of the company's stock worth $754,119,000 after acquiring an additional 40,219 shares during the period. Amundi lifted its holdings in shares of MongoDB by 61.3% in the 3rd quarter. Amundi now owns 1,483,396 shares of the company's stock worth $477,550,000 after purchasing an additional 563,995 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of MongoDB by 0.7% during the fourth quarter. Geode Capital Management LLC now owns 1,444,384 shares of the company's stock valued at $604,429,000 after acquiring an additional 9,693 shares during the period. Finally, Norges Bank acquired a new position in MongoDB during the 4th quarter valued at about $574,821,000. Hedge funds and other institutional investors own 89.29% of the company's stock.

About MongoDB

MongoDB, Inc is a software company best known for developing MongoDB, a general-purpose, document-oriented database designed for modern application development. The company's platform is built to support high-performance, scalable data storage and retrieval for use cases such as cloud-native applications, mobile backends, real-time analytics, and content management. MongoDB offers a mix of open-source software, commercial server distributions, and subscription-based services that include technical support, training and professional services.

The company traces its origins to 2007 when it was founded as 10gen by Dwight Merriman and Eliot Horowitz; it later adopted the MongoDB name and completed a public listing in 2017.

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