Stock Traders Purchase High Volume of MongoDB Put Options (NASDAQ:MDB)

Key Points

• Traders purchased an unusually high volume of puts — 23,831 put options on MongoDB, a roughly 2,157% increase versus the average daily put volume, signalling notable bearish bets on the stock.
• Director Dwight A. Merriman sold 10,000 shares at an average $407.70 (≈$4.08M), trimming his stake to 1,031,316 shares; insiders have sold 19,383 shares over the last quarter and own about 3.10% of the company.
• Several analysts cut price targets (e.g., Wells Fargo to $375, Baird to $260, Barclays to $370) but the consensus remains a "Moderate Buy" with a consensus price target of $360.03.

MongoDB, Inc. (NASDAQ:MDB - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Traders bought 23,831 put options on the stock. This represents an increase of approximately 2,157% compared to the average daily volume of 1,056 put options.

Insider Activity at MongoDB

In other news, Director Dwight A. Merriman sold 10,000 shares of the business's stock in a transaction that occurred on Wednesday, January 14th. The stock was sold at an average price of $407.70, for a total value of $4,077,000.00. Following the transaction, the director owned 1,031,316 shares in the company, valued at $420,467,533.20. The trade was a 0.96% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Over the last quarter, insiders have sold 19,383 shares of company stock worth $7,910,983. 3.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Central Pacific Bank Trust Division purchased a new position in MongoDB during the 4th quarter valued at about $28,000. Cornerstone Planning Group LLC lifted its holdings in shares of MongoDB by 1,220.0% in the fourth quarter. Cornerstone Planning Group LLC now owns 66 shares of the company's stock worth $27,000 after buying an additional 61 shares in the last quarter. International Assets Investment Management LLC purchased a new stake in shares of MongoDB in the fourth quarter worth about $33,000. Root Financial Partners LLC boosted its position in shares of MongoDB by 58.2% in the fourth quarter. Root Financial Partners LLC now owns 87 shares of the company's stock valued at $37,000 after acquiring an additional 32 shares during the period. Finally, Global Trust Asset Management LLC bought a new position in shares of MongoDB in the fourth quarter valued at approximately $38,000. Institutional investors own 89.29% of the company's stock.

Analyst Ratings Changes

MDB has been the topic of a number of recent analyst reports. Wells Fargo & Company dropped their price target on MongoDB from $450.00 to $375.00 and set an "overweight" rating on the stock in a report on Tuesday, March 3rd. Robert W. Baird restated a "neutral" rating and issued a $260.00 price objective (down from $500.00) on shares of MongoDB in a research note on Tuesday, March 3rd. Rosenblatt Securities reaffirmed a "buy" rating and set a $425.00 target price on shares of MongoDB in a research report on Monday, March 2nd. Barclays lowered their target price on MongoDB from $440.00 to $370.00 and set an "overweight" rating on the stock in a research note on Tuesday, March 3rd. Finally, Bank of America reissued a "buy" rating on shares of MongoDB in a report on Tuesday, March 3rd. Twenty-seven equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $360.03.

MongoDB Price Performance

NASDAQ:MDB opened at $249.36 on Thursday. The company has a market cap of $20.04 billion, a P/E ratio of -283.36 and a beta of 1.60. The stock's fifty day moving average price is $314.65 and its two-hundred day moving average price is $347.72. MongoDB has a 1 year low of $140.78 and a 1 year high of $444.72.

MongoDB (NASDAQ:MDB - Get Free Report) last posted its quarterly earnings results on Monday, March 2nd. The company reported $1.65 EPS for the quarter, topping analysts' consensus estimates of $1.47 by $0.18. The firm had revenue of $695.07 million during the quarter, compared to analyst estimates of $669.40 million. MongoDB had a negative return on equity of 1.03% and a negative net margin of 2.89%.The business's revenue for the quarter was up 26.8% on a year-over-year basis. During the same period last year, the company earned $1.28 earnings per share. On average, analysts expect that MongoDB will post -1.78 earnings per share for the current fiscal year.

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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