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

Key Points

• Traders purchased an unusually large volume of puts—23,831 put options, roughly a 2,157% increase versus average—signaling heavy bearish bets or hedging activity on MongoDB (MDB).
• MongoDB beat the quarter with $1.65 EPS and $695.07M revenue (revenue +26.8% YoY), but the company remains unprofitable (negative net margin) and analysts expect -1.78 EPS for the current year.
• Several brokers cut price targets (examples: Truist to $375, UBS to $275) though consensus is a Moderate Buy with an average target of $360.03; institutional ownership is high at 89.29% and insiders have recently sold shares.

MongoDB, Inc. (NASDAQ:MDB - Get Free Report) was the recipient of unusually large options trading on Wednesday. Stock traders purchased 23,831 put options on the company. This represents an increase of approximately 2,157% compared to the average volume of 1,056 put options.

MongoDB Stock Up 4.5%

Shares of MongoDB stock opened at $244.06 on Thursday. MongoDB has a 52-week low of $148.88 and a 52-week high of $444.72. The company's 50-day simple moving average is $286.56 and its 200-day simple moving average is $342.31. The firm has a market cap of $19.62 billion, a price-to-earnings ratio of -277.34 and a beta of 1.60.

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

Analyst Ratings Changes

Several brokerages have issued reports on MDB. Truist Financial lowered their price objective on shares of MongoDB from $500.00 to $375.00 and set a "buy" rating on the stock in a research report on Tuesday, March 3rd. Robert W. Baird reiterated a "neutral" rating and issued a $260.00 target price (down from $500.00) on shares of MongoDB in a research note on Tuesday, March 3rd. UBS Group lowered their target price on MongoDB from $440.00 to $275.00 and set a "neutral" rating on the stock in a research note on Tuesday, March 3rd. Scotiabank upgraded MongoDB from a "sector perform" rating to a "sector outperform" rating and lifted their target price for the company from $275.00 to $310.00 in a research note on Thursday, March 5th. Finally, Guggenheim reiterated a "buy" rating and issued a $475.00 target price on shares of MongoDB in a research note on Tuesday. Twenty-seven research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $360.03.

Insider Buying and Selling

In other MongoDB news, Director Hope F. Cochran sold 1,566 shares of the firm's stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $249.33, for a total transaction of $390,450.78. Following the transaction, the director directly owned 24,093 shares of the company's stock, valued at approximately $6,007,107.69. This trade represents a 6.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Dwight A. Merriman sold 1,190 shares of the firm's stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $369.75, for a total transaction of $440,002.50. Following the transaction, the director directly owned 80,462 shares in the company, valued at $29,750,824.50. The trade was a 1.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 3.10% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. grew its holdings in MongoDB by 5.0% during the third quarter. Vanguard Group Inc. now owns 8,985,697 shares of the company's stock worth $2,788,981,000 after acquiring an additional 431,382 shares during the period. ValueAct Holdings L.P. grew its holdings in MongoDB by 206.8% during 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 during the period. State Street Corp grew its holdings 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 grew its position in MongoDB by 61.3% during the third quarter. Amundi now owns 1,483,396 shares of the company's stock worth $477,550,000 after buying an additional 563,995 shares during the period. Finally, Geode Capital Management LLC grew its position in MongoDB by 0.7% during the fourth quarter. Geode Capital Management LLC now owns 1,444,384 shares of the company's stock worth $604,429,000 after buying an additional 9,693 shares during the period. Institutional investors and hedge funds 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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