MongoDB (NASDAQ:MDB) Shares Gap Down - Here's Why

Key Points

• MongoDB shares gapped down before Tuesday’s trading session, opening at $314.37 versus a prior close of $326.13, and were last down about 5.3% intraday.
• Several analysts trimmed price targets on the stock, though the consensus remains a “Moderate Buy” with an average target price of $373.30.
• The company’s latest earnings beat estimates, with Q4 revenue and EPS both topping forecasts and revenue rising 26.8% year over year, but insiders have recently sold shares.

MongoDB, Inc. (NASDAQ:MDB - Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $326.13, but opened at $314.37. MongoDB shares last traded at $314.96, with a volume of 435,439 shares traded.

Analysts Set New Price Targets

A number of brokerages recently issued reports on MDB. Oppenheimer cut their target price on MongoDB from $425.00 to $375.00 and set an "outperform" rating on the stock in a report on Tuesday, March 3rd. Monness Crespi & Hardt dropped their price objective on MongoDB from $475.00 to $370.00 and set a "buy" rating on the stock in a research note on Tuesday, March 3rd. Rosenblatt Securities restated a "buy" rating and set a $385.00 price objective on shares of MongoDB in a research note on Tuesday. Wall Street Zen cut MongoDB from a "buy" rating to a "hold" rating in a research note on Saturday, April 18th. Finally, DA Davidson dropped their price objective on MongoDB from $465.00 to $385.00 and set a "buy" rating on the stock in a research note on Wednesday, February 25th. Twenty-six equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, MongoDB currently has an average rating of "Moderate Buy" and an average target price of $373.30.

MongoDB Trading Down 5.3%

The firm has a market cap of $24.82 billion, a PE ratio of -350.95 and a beta of 1.48. The stock has a fifty day simple moving average of $269.54 and a two-hundred day simple moving average of $334.71.

MongoDB (NASDAQ:MDB - Get Free Report) last released its earnings results on Monday, March 2nd. The company reported $1.65 earnings per share for the quarter, topping analysts' consensus estimates of $1.47 by $0.18. MongoDB had a negative return on equity of 1.03% and a negative net margin of 2.89%.The company had revenue of $695.07 million during the quarter, compared to the consensus estimate of $669.40 million. During the same quarter in the previous year, the company posted $1.28 EPS. MongoDB's quarterly revenue was up 26.8% compared to the same quarter last year. As a group, sell-side analysts predict that MongoDB, Inc. will post -0.46 earnings per share for the current fiscal year.

Insider Buying and Selling at MongoDB

In related news, Director Dwight A. Merriman sold 6,000 shares of the company's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $314.98, for a total value of $1,889,880.00. Following the sale, the director directly owned 470,896 shares of the company's stock, valued at $148,322,822.08. This represents a 1.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Hope F. Cochran sold 1,566 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $249.33, for a total value of $390,450.78. Following the completion of the sale, the director directly owned 24,093 shares in the company, valued at approximately $6,007,107.69. This represents a 6.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 31,566 shares of company stock worth $8,744,791. 3.10% of the stock is owned by insiders.

Institutional Investors Weigh In On MongoDB

A number of institutional investors have recently modified their holdings of MDB. Integrated Wealth Concepts LLC grew its stake in shares of MongoDB by 31.6% in the first quarter. Integrated Wealth Concepts LLC now owns 1,363 shares of the company's stock worth $239,000 after acquiring an additional 327 shares during the last quarter. NewEdge Advisors LLC grew its stake in shares of MongoDB by 55.0% in the first quarter. NewEdge Advisors LLC now owns 4,238 shares of the company's stock worth $743,000 after acquiring an additional 1,504 shares during the last quarter. Sivia Capital Partners LLC bought a new position in shares of MongoDB during the second quarter valued at $329,000. Cresset Asset Management LLC lifted its holdings in shares of MongoDB by 13.4% during the second quarter. Cresset Asset Management LLC now owns 3,138 shares of the company's stock valued at $659,000 after purchasing an additional 370 shares in the last quarter. Finally, Cerity Partners LLC lifted its holdings in shares of MongoDB by 28.3% during the second quarter. Cerity Partners LLC now owns 12,215 shares of the company's stock valued at $2,565,000 after purchasing an additional 2,697 shares in the last quarter. 89.29% of the stock is owned by hedge funds and other institutional investors.

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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