MicroStrategy (NASDAQ:MSTR) Shares Down 2.3% on Disappointing Earnings

MicroStrategy Incorporated (NASDAQ:MSTRGet Free Report) fell 2.3% during trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $237.00 and last traded at $241.70. 9,023,287 shares were traded during trading, a decline of 45% from the average session volume of 16,515,920 shares. The stock had previously closed at $247.31.

The software maker reported ($1.56) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($1.44). MicroStrategy had a negative return on equity of 19.60% and a negative net margin of 87.05%. The business had revenue of $116.07 million for the quarter, compared to the consensus estimate of $121.45 million. During the same period in the prior year, the business earned ($8.98) earnings per share. MicroStrategy’s revenue was down 10.3% compared to the same quarter last year.

Analyst Upgrades and Downgrades

MSTR has been the topic of several recent research reports. BTIG Research lifted their price target on shares of MicroStrategy from $180.00 to $240.00 and gave the company a “buy” rating in a research note on Monday, October 21st. Maxim Group upped their target price on MicroStrategy from $193.00 to $270.00 and gave the stock a “buy” rating in a report on Thursday. Barclays increased their price target on MicroStrategy from $173.00 to $225.00 and gave the company an “overweight” rating in a research report on Monday, October 14th. TD Cowen boosted their price target on MicroStrategy from $200.00 to $300.00 and gave the stock a “buy” rating in a research report on Thursday. Finally, Canaccord Genuity Group increased their price objective on MicroStrategy from $173.00 to $300.00 and gave the company a “buy” rating in a report on Thursday. One equities research analyst has rated the stock with a sell rating and eight have given a buy rating to the stock. According to data from MarketBeat.com, MicroStrategy currently has a consensus rating of “Moderate Buy” and a consensus target price of $264.88.

Read Our Latest Stock Analysis on MSTR

Insider Activity

In related news, CEO Phong Le sold 50,000 shares of the stock in a transaction on Thursday, August 22nd. The stock was sold at an average price of $138.28, for a total value of $6,914,000.00. Following the sale, the chief executive officer now owns 12,670 shares in the company, valued at approximately $1,752,007.60. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, EVP Wei-Ming Shao sold 3,000 shares of the business’s 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 owns 6,460 shares in the company, valued at $912,152. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Phong Le sold 50,000 shares of the company’s stock in a transaction that occurred on Thursday, August 22nd. The shares were sold at an average price of $138.28, for a total value of $6,914,000.00. Following the completion of the transaction, the chief executive officer now directly owns 12,670 shares in the company, valued at $1,752,007.60. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 101,838 shares of company stock valued at $13,950,265 over the last three months. Insiders own 13.18% of the company’s stock.

Institutional Trading of MicroStrategy

Several institutional investors have recently added to or reduced their stakes in the company. UMB Bank n.a. lifted its holdings in shares of MicroStrategy by 900.0% during the third quarter. UMB Bank n.a. now owns 150 shares of the software maker’s stock worth $25,000 after buying an additional 135 shares in the last quarter. AlphaMark Advisors LLC raised its stake in 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 purchasing an additional 145 shares in the last quarter. Capital Performance Advisors LLP bought a new stake in MicroStrategy in the 3rd quarter valued at about $27,000. ST Germain D J Co. Inc. grew its position in shares of MicroStrategy by 900.0% during the 3rd quarter. ST Germain D J Co. Inc. now owns 170 shares of the software maker’s stock worth $29,000 after purchasing an additional 153 shares in the last quarter. Finally, Fairman Group LLC increased its holdings in shares of MicroStrategy by 900.0% during the third quarter. Fairman Group LLC now owns 200 shares of the software maker’s stock worth $34,000 after purchasing an additional 180 shares during the period. 72.03% of the stock is currently owned by institutional investors.

MicroStrategy Trading Down 6.0 %

The company has a debt-to-equity ratio of 1.31, a current ratio of 0.47 and a quick ratio of 0.47. The company has a market capitalization of $40.74 billion, a price-to-earnings ratio of -109.02 and a beta of 3.11. The business’s 50-day moving average price is $171.91 and its two-hundred day moving average price is $153.59.

MicroStrategy Company Profile

(Get Free Report)

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.

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