MicroStrategy (NASDAQ:MSTR) Trading Down 4.8% on Analyst Downgrade

MicroStrategy Incorporated (NASDAQ:MSTR) shares dropped 4.8% on Monday after Canaccord Genuity Group lowered their price target on the stock from $185.00 to $173.00. Canaccord Genuity Group currently has a buy rating on the stock. MicroStrategy traded as low as $133.44 and last traded at $134.67. Approximately 816,202 shares traded hands during mid-day trading, a decline of 95% from the average daily volume of 16,329,228 shares. The stock had previously closed at $141.47.

Other analysts have also issued research reports about the company. Barclays began coverage on MicroStrategy in a report on Friday, September 6th. They issued an “overweight” rating and a $146.00 price objective for the company. Maxim Group lifted their price objective on shares of MicroStrategy from $183.50 to $193.00 and gave the stock a “buy” rating in a research note on Friday, August 2nd. Sanford C. Bernstein upgraded shares of MicroStrategy to a “strong-buy” rating in a report on Friday, June 14th. Benchmark raised their target price on shares of MicroStrategy from $187.50 to $215.00 and gave the stock a “buy” rating in a report on Friday, August 2nd. Finally, Cantor Fitzgerald assumed coverage on MicroStrategy in a report on Wednesday, August 21st. They issued an “overweight” rating and a $194.00 price target on the stock. One analyst has rated the stock with a sell rating, seven have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, MicroStrategy presently has an average rating of “Moderate Buy” and a consensus target price of $197.25.

Insider Transactions at MicroStrategy

In related news, EVP Wei-Ming Shao sold 3,000 shares of the company’s stock in a transaction that occurred on Thursday, August 22nd. The shares were sold at an average price of $141.20, for a total value of $423,600.00. Following the completion of the sale, the executive vice president now owns 6,460 shares in the company, valued at approximately $912,152. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. In other MicroStrategy news, CEO Phong Le sold 48,838 shares of MicroStrategy stock in a transaction dated Friday, August 16th. The stock was sold at an average price of $135.40, for a total transaction of $6,612,665.20. Following the transaction, the chief executive officer now owns 12,670 shares of the company’s stock, valued at approximately $1,715,518. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Wei-Ming Shao sold 3,000 shares of the stock in a transaction that occurred on Thursday, August 22nd. The stock was sold at an average price of $141.20, for a total transaction of $423,600.00. Following the completion of the sale, the executive vice president now directly owns 6,460 shares of the company’s stock, valued at $912,152. The disclosure for this sale can be found here. Insiders have sold a total of 101,838 shares of company stock valued at $13,950,265 over the last ninety days. Corporate insiders own 13.18% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in MSTR. Newbridge Financial Services Group Inc. grew its holdings in shares of MicroStrategy by 10.9% during the 2nd quarter. Newbridge Financial Services Group Inc. now owns 887 shares of the software maker’s stock valued at $1,222,000 after acquiring an additional 87 shares in the last quarter. Sanctuary Advisors LLC purchased a new position in MicroStrategy in the second quarter valued at about $553,000. Gordian Capital Singapore Pte Ltd grew its stake in MicroStrategy by 2,416.7% in the second quarter. Gordian Capital Singapore Pte Ltd now owns 151 shares of the software maker’s stock valued at $208,000 after purchasing an additional 145 shares in the last quarter. Strategic Investment Solutions Inc. IL acquired a new position in MicroStrategy in the 2nd quarter worth about $106,000. Finally, SRN Advisors LLC raised its stake in shares of MicroStrategy by 16.1% during the 2nd quarter. SRN Advisors LLC now owns 2,122 shares of the software maker’s stock worth $2,923,000 after purchasing an additional 294 shares in the last quarter. Institutional investors and hedge funds own 72.03% of the company’s stock.

MicroStrategy Trading Down 4.9 %

The company has a fifty day moving average price of $142.12 and a 200-day moving average price of $144.54. The firm has a market capitalization of $23.86 billion, a price-to-earnings ratio of -20.08 and a beta of 3.10. The company has a current ratio of 0.47, a quick ratio of 0.47 and a debt-to-equity ratio of 1.31.

MicroStrategy (NASDAQ:MSTR) last posted its earnings results on Thursday, August 1st. The software maker reported ($0.57) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.48). MicroStrategy had a negative net margin of 43.69% and a negative return on equity of 14.72%. The business had revenue of $111.44 million during the quarter, compared to analyst estimates of $121.99 million. During the same quarter last year, the firm earned $0.15 earnings per share. MicroStrategy’s revenue was down 7.4% compared to the same quarter last year.

MicroStrategy Company Profile

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.