MicroStrategy (NASDAQ:MSTR) Shares Gap Down – Time to Sell?

MicroStrategy Incorporated (NASDAQ:MSTR) shares gapped down prior to trading on Tuesday . The stock had previously closed at $380.30, but opened at $367.85. MicroStrategy shares last traded at $375.66, with a volume of 3,892,744 shares changing hands.

Analyst Ratings Changes

Several research analysts have recently issued reports on MSTR shares. Sanford C. Bernstein increased their price target on MicroStrategy from $290.00 to $600.00 and gave the stock an “outperform” rating in a research note on Monday, November 25th. Maxim Group increased their target price on shares of MicroStrategy from $193.00 to $270.00 and gave the company a “buy” rating in a research report on Thursday, October 31st. TD Cowen boosted their price target on shares of MicroStrategy from $392.00 to $525.00 and gave the stock a “buy” rating in a research report on Monday, November 25th. Canaccord Genuity Group increased their price objective on shares of MicroStrategy from $300.00 to $510.00 and gave the company a “buy” rating in a report on Monday, November 25th. Finally, Benchmark boosted their target price on MicroStrategy from $450.00 to $650.00 and gave the stock a “buy” rating in a report on Monday, November 25th. One equities research analyst has rated the stock with a sell rating and eight have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $479.25.

MicroStrategy Price Performance

The company’s 50-day simple moving average is $262.97 and its 200 day simple moving average is $187.26. The company has a market capitalization of $76.49 billion, a P/E ratio of -181.64 and a beta of 3.17. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 1.12.

MicroStrategy (NASDAQ:MSTR) last posted its earnings results on Wednesday, October 30th. The software maker reported ($1.56) EPS for the quarter, missing the consensus estimate of ($0.12) by ($1.44). The business had revenue of $116.07 million for the quarter, compared to analyst estimates of $121.45 million. MicroStrategy had a negative return on equity of 17.31% and a negative net margin of 87.05%. The company’s quarterly revenue was down 10.3% compared to the same quarter last year. During the same period in the previous year, the company earned ($8.98) earnings per share.

Insider Buying and Selling

In related news, Director Stephen X. Graham sold 20,000 shares of the business’s stock in a transaction dated Thursday, November 21st. The stock was sold at an average price of $451.36, for a total transaction of $9,027,200.00. Following the completion of the transaction, the director now owns 6,970 shares of the company’s stock, valued at approximately $3,145,979.20. The trade was a 74.16 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Jeanine Montgomery sold 56,250 shares of the firm’s stock in a transaction that occurred on Wednesday, November 6th. The shares were sold at an average price of $257.41, for a total value of $14,479,312.50. Following the completion of the sale, the chief accounting officer now directly owns 5,670 shares in the company, valued at $1,459,514.70. This trade represents a 90.84 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 102,000 shares of company stock worth $32,259,177. 13.18% of the stock is currently owned by insiders.

Institutional Trading of MicroStrategy

Several hedge funds and other institutional investors have recently bought and sold shares of MSTR. UMB Bank n.a. lifted its stake in shares of MicroStrategy by 900.0% in the third quarter. UMB Bank n.a. now owns 150 shares of the software maker’s stock valued at $25,000 after buying an additional 135 shares during the period. AlphaMark Advisors LLC lifted its position in shares of MicroStrategy by 2,900.0% in the 3rd quarter. AlphaMark Advisors LLC now owns 150 shares of the software maker’s stock worth $25,000 after acquiring an additional 145 shares during the period. Capital Performance Advisors LLP acquired a new stake in shares of MicroStrategy during the 3rd quarter worth approximately $27,000. Sunbelt Securities Inc. increased its position in shares of MicroStrategy by 900.0% during the third quarter. Sunbelt Securities Inc. now owns 160 shares of the software maker’s stock valued at $27,000 after purchasing an additional 144 shares during the period. Finally, ST Germain D J Co. Inc. raised its stake in shares of MicroStrategy by 900.0% in the third quarter. ST Germain D J Co. Inc. now owns 170 shares of the software maker’s stock valued at $29,000 after purchasing an additional 153 shares in the last quarter. 72.03% of the stock is currently owned by institutional investors and hedge funds.

About MicroStrategy

MicroStrategy Incorporated provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers MicroStrategy ONE, which provides non-technical users with the ability to directly access novel and actionable insights for decision-making; and MicroStrategy Cloud for Government service, which offers always-on threat monitoring that meets the rigorous technical and regulatory needs of governments and financial institutions.