MicroStrategy (NASDAQ:MSTR) Shares Down 1.2% on Disappointing Earnings

MicroStrategy Incorporated (NASDAQ:MSTR)’s stock price fell 1.2% during trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $328.50 and last traded at $332.61. 4,727,881 shares were traded during trading, a decline of 74% from the average session volume of 17,870,152 shares. The stock had previously closed at $336.70.

The software maker reported ($3.20) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($3.07). MicroStrategy had a negative net margin of 87.05% and a negative return on equity of 17.31%.

Analyst Ratings Changes

Several equities analysts have recently commented on MSTR shares. Cantor Fitzgerald boosted their target price on shares of MicroStrategy from $613.00 to $619.00 and gave the stock an “overweight” rating in a report on Thursday. Benchmark reissued a “buy” rating and issued a $650.00 target price on shares of MicroStrategy in a report on Tuesday, January 14th. Compass Point raised shares of MicroStrategy to a “strong-buy” rating in a report on Wednesday, January 29th. Canaccord Genuity Group lowered their target price on shares of MicroStrategy from $510.00 to $409.00 and set a “buy” rating on the stock in a report on Thursday. Finally, BTIG Research boosted their price target on shares of MicroStrategy from $290.00 to $570.00 and gave the stock a “buy” rating in a research report on Thursday, November 21st. One investment analyst has rated the stock with a sell rating, nine have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat, MicroStrategy currently has an average rating of “Moderate Buy” and a consensus price target of $544.78.

Insider Transactions at MicroStrategy

In related news, CAO Jeanine Montgomery sold 752 shares of the company’s stock in a transaction dated Thursday, November 14th. The shares were sold at an average price of $322.45, for a total value of $242,482.40. Following the completion of the sale, the chief accounting officer now directly owns 6,418 shares of the company’s stock, valued at $2,069,484.10. This represents a 10.49 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Stephen X. Graham sold 20,000 shares of the company’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 sale, the director now directly owns 6,970 shares of the company’s stock, valued at approximately $3,145,979.20. This trade represents a 74.16 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 40,050 shares of company stock worth $16,314,110. Insiders own 9.16% of the company’s stock.

Institutional Trading of MicroStrategy

A number of hedge funds have recently added to or reduced their stakes in the business. GPS Wealth Strategies Group LLC lifted its stake in MicroStrategy by 3.2% in the fourth quarter. GPS Wealth Strategies Group LLC now owns 1,120 shares of the software maker’s stock worth $324,000 after acquiring an additional 35 shares during the period. Versant Capital Management Inc lifted its position in shares of MicroStrategy by 38.2% during the fourth quarter. Versant Capital Management Inc now owns 141 shares of the software maker’s stock valued at $41,000 after buying an additional 39 shares during the last quarter. WR Wealth Planners LLC lifted its position in shares of MicroStrategy by 22.6% during the fourth quarter. WR Wealth Planners LLC now owns 260 shares of the software maker’s stock valued at $75,000 after buying an additional 48 shares during the last quarter. Sterling Investment Advisors Ltd. lifted its position in shares of MicroStrategy by 0.9% during the fourth quarter. Sterling Investment Advisors Ltd. now owns 5,380 shares of the software maker’s stock valued at $1,558,000 after buying an additional 50 shares during the last quarter. Finally, Masso Torrence Wealth Management Inc. lifted its position in shares of MicroStrategy by 1.8% during the fourth quarter. Masso Torrence Wealth Management Inc. now owns 3,055 shares of the software maker’s stock valued at $885,000 after buying an additional 55 shares during the last quarter. 59.84% of the stock is owned by hedge funds and other institutional investors.

MicroStrategy Trading Down 3.3 %

The company has a debt-to-equity ratio of 1.12, a current ratio of 0.65 and a quick ratio of 0.65. The stock has a market cap of $78.00 billion, a price-to-earnings ratio of -154.47 and a beta of 3.25. The company’s fifty day moving average price is $356.27 and its 200-day moving average price is $254.50.

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.