Investors Buy Large Volume of MongoDB Put Options (NASDAQ:MDB)

Key Points

• MongDB experienced a significant increase in put options trading, with 23,831 contracts traded—an increase of approximately 2,157% over the usual volume.
• The company reported better-than-expected earnings, with an EPS of $1.00 against a consensus estimate of $0.65, alongside a 21.8% year-over-year revenue growth.
• Analysts show confidence in MongoDB, with multiple firms raising their price targets, resulting in an average target price of $310.86 and a consensus rating of "Moderate Buy."

MongoDB, Inc. (NASDAQ:MDB - Get Free Report) saw unusually large options trading activity on Wednesday. Stock traders acquired 23,831 put options on the stock. Thisrepresentsanincreaseof2,157% compared to the average volume of 1,056 put options.

MongoDB Price Performance

Shares of MDB stock traded up $9.17 on Thursday, hitting $322.05. 2,747,546 shares of the company's stock were exchanged, compared to its average volume of 2,536,418. MongoDB has a 12 month low of $140.78 and a 12 month high of $370.00. The stock has a market cap of $26.32 billion, a P/E ratio of -328.62 and a beta of 1.49. The company has a 50 day moving average of $231.73 and a 200 day moving average of $208.01.

MongoDB (NASDAQ:MDB - Get Free Report) last released its earnings results on Wednesday, June 4th. The company reported $1.00 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.65 by $0.35. MongoDB had a negative return on equity of 1.67% and a negative net margin of 3.54%.The firm had revenue of $549.01 million for the quarter, compared to analysts' expectations of $527.49 million. During the same quarter in the previous year, the business posted $0.51 earnings per share. The business's revenue for the quarter was up 21.8% on a year-over-year basis. Sell-side analysts predict that MongoDB will post -1.78 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the company. Macquarie raised their price target on MongoDB from $230.00 to $265.00 and gave the company a "neutral" rating in a report on Wednesday, August 27th. Robert W. Baird increased their price target on shares of MongoDB from $260.00 to $335.00 and gave the company an "outperform" rating in a report on Wednesday, August 27th. UBS Group upped their target price on MongoDB from $240.00 to $310.00 and gave the company a "neutral" rating in a research report on Wednesday, August 27th. Wolfe Research lifted their price target on MongoDB from $280.00 to $350.00 and gave the stock an "outperform" rating in a report on Wednesday, August 27th. Finally, BMO Capital Markets upped their price target on shares of MongoDB from $280.00 to $315.00 and gave the company an "outperform" rating in a research note on Wednesday, August 27th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and ten have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $310.86.

Insider Activity

In other MongoDB news, Director Dwight A. Merriman sold 1,000 shares of the company's stock in a transaction that occurred on Friday, July 25th. The stock was sold at an average price of $245.00, for a total value of $245,000.00. Following the sale, the director owned 1,104,316 shares in the company, valued at $270,557,420. This represents a 0.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Dev Ittycheria sold 33,320 shares of the firm's stock in a transaction that occurred on Thursday, August 28th. The shares were sold at an average price of $301.29, for a total value of $10,038,982.80. Following the completion of the sale, the chief executive officer directly owned 203,237 shares of the company's stock, valued at approximately $61,233,275.73. The trade was a 14.09% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 58,730 shares of company stock valued at $15,966,159 in the last 90 days. 3.10% of the stock is owned by company insiders.

Institutional Trading of MongoDB

Hedge funds have recently made changes to their positions in the company. AQR Capital Management LLC grew its holdings in MongoDB by 2,567.2% during the 2nd quarter. AQR Capital Management LLC now owns 1,111,647 shares of the company's stock worth $233,435,000 after acquiring an additional 1,069,969 shares during the last quarter. Jericho Capital Asset Management L.P. bought a new position in shares of MongoDB during the first quarter worth about $161,543,000. Norges Bank bought a new position in shares of MongoDB during the second quarter worth about $164,338,000. Primecap Management Co. CA increased its position in MongoDB by 863.5% during the 1st quarter. Primecap Management Co. CA now owns 870,550 shares of the company's stock valued at $152,694,000 after purchasing an additional 780,200 shares during the period. Finally, Vanguard Group Inc. boosted its position in MongoDB by 9.5% during the second quarter. Vanguard Group Inc. now owns 8,554,315 shares of the company's stock valued at $1,796,321,000 after acquiring an additional 744,547 shares during the last quarter. 89.29% of the stock is owned by institutional investors and hedge funds.

MongoDB Company Profile

MongoDB, Inc, together with its subsidiaries, provides general purpose database platform worldwide. The company provides MongoDB Atlas, a hosted multi-cloud database-as-a-service solution; MongoDB Enterprise Advanced, a commercial database server for enterprise customers to run in the cloud, on-premises, or in a hybrid environment; and Community Server, a free-to-download version of its database, which includes the functionality that developers need to get started with MongoDB.