MongoDB (NASDAQ:MDB) Shares Up 11.7% - Here's Why

Key Points

• Shares of MongoDB surged 11.7% intraday to a high of $301.08 (last ~$296.19), while trading volume (~801,535 shares) was about 55% below the average session volume.
• MongoDB beat estimates for the quarter with $1.65 EPS vs. $1.47 expected and revenue of $695.07M (up 26.8% YoY), but the company still shows a negative net margin and negative return on equity.
• Analysts have trimmed some ratings and price targets recently, yet the consensus remains a Moderate Buy with an average price target of $361.97 (26 Buys, 7 Holds, 3 Sells).

MongoDB, Inc. (NASDAQ:MDB - Get Free Report) shot up 11.7% during mid-day trading on Thursday . The stock traded as high as $301.08 and last traded at $296.1850. 801,535 shares changed hands during trading, a decline of 55% from the average session volume of 1,792,851 shares. The stock had previously closed at $265.26.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Sanford C. Bernstein downgraded shares of MongoDB from an "outperform" rating to a "market perform" rating in a report on Tuesday, March 3rd. Stifel Nicolaus lowered their price objective on shares of MongoDB from $450.00 to $330.00 and set a "buy" rating on the stock in a report on Tuesday, March 3rd. Weiss Ratings downgraded shares of MongoDB from a "sell (d-)" rating to a "sell (e+)" rating in a report on Wednesday, April 29th. Wall Street Zen downgraded shares of MongoDB from a "buy" rating to a "hold" rating in a report on Saturday, April 18th. Finally, Monness Crespi & Hardt lowered their price objective on shares of MongoDB from $475.00 to $370.00 and set a "buy" rating on the stock in a report on Tuesday, March 3rd. Twenty-six investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $361.97.

MongoDB Price Performance

The company's fifty day moving average price is $262.50 and its 200 day moving average price is $337.05. The company has a market cap of $23.58 billion, a PE ratio of -333.43 and a beta of 1.48.

MongoDB (NASDAQ:MDB - Get Free Report) last announced its earnings results on Monday, March 2nd. The company reported $1.65 EPS for the quarter, beating the consensus estimate of $1.47 by $0.18. The company had revenue of $695.07 million during the quarter, compared to the consensus estimate of $669.40 million. MongoDB had a negative net margin of 2.89% and a negative return on equity of 1.03%. The firm's revenue for the quarter was up 26.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.28 earnings per share. On average, analysts forecast that MongoDB, Inc. will post -0.46 EPS for the current year.

Insider Activity

In other news, Director Hope F. Cochran sold 1,566 shares of the stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $249.33, for a total value of $390,450.78. Following the completion of the sale, the director owned 24,093 shares in the company, valued at $6,007,107.69. This represents a 6.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Dwight A. Merriman sold 4,000 shares of the stock in a transaction dated Thursday, April 16th. The shares were sold at an average price of $252.33, for a total transaction of $1,009,320.00. Following the completion of the sale, the director owned 476,896 shares of the company's stock, valued at approximately $120,335,167.68. This represents a 0.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 13,566 shares of company stock valued at $3,294,891. 3.10% of the stock is currently owned by corporate insiders.

Institutional Trading of MongoDB

A number of large investors have recently added to or reduced their stakes in MDB. Integrated Wealth Concepts LLC increased its holdings in MongoDB by 31.6% during the first quarter. Integrated Wealth Concepts LLC now owns 1,363 shares of the company's stock worth $239,000 after buying an additional 327 shares during the last quarter. NewEdge Advisors LLC increased its holdings in MongoDB by 55.0% during the first quarter. NewEdge Advisors LLC now owns 4,238 shares of the company's stock worth $743,000 after buying an additional 1,504 shares during the last quarter. Sivia Capital Partners LLC purchased a new stake in MongoDB during the second quarter worth about $329,000. Cresset Asset Management LLC increased its holdings in MongoDB by 13.4% during the second quarter. Cresset Asset Management LLC now owns 3,138 shares of the company's stock worth $659,000 after buying an additional 370 shares during the last quarter. Finally, Cerity Partners LLC increased its holdings in MongoDB by 28.3% during the second quarter. Cerity Partners LLC now owns 12,215 shares of the company's stock worth $2,565,000 after buying an additional 2,697 shares during the last quarter. Hedge funds and other institutional investors own 89.29% of the company's stock.

MongoDB Company Profile

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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