MicroStrategy (NASDAQ:MSTR) Trading 5.2% Higher – Should You Buy?

MicroStrategy Incorporated (NASDAQ:MSTR) shares were up 5.2% during mid-day trading on Friday . The stock traded as high as $317.13 and last traded at $315.64. 5,355,650 shares changed hands during trading, a decline of 52% from the average daily volume of 11,090,482 shares. The stock had previously closed at $300.01.

Wall Street Analyst Weigh In

Several analysts have weighed in on the stock. Benchmark boosted their target price on shares of MicroStrategy from $450.00 to $650.00 and gave the stock a “buy” rating in a research report on Monday, November 25th. BTIG Research lifted their price objective on shares of MicroStrategy from $290.00 to $570.00 and gave the stock a “buy” rating in a research note on Thursday, November 21st. Sanford C. Bernstein reissued an “outperform” rating and issued a $600.00 target price on shares of MicroStrategy in a research report on Thursday, December 12th. TD Cowen lifted their price target on MicroStrategy from $392.00 to $525.00 and gave the stock a “buy” rating in a research report on Monday, November 25th. Finally, Barclays increased their price objective on MicroStrategy from $275.00 to $515.00 and gave the company an “overweight” rating in a report on Monday, November 25th. One analyst has rated the stock with a sell rating and eight have issued a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $479.25.

MicroStrategy Stock Performance

The company has a market capitalization of $81.40 billion, a PE ratio of -161.20 and a beta of 3.25. The firm has a 50-day moving average of $343.44 and a two-hundred day moving average of $220.29. 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) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($1.44). The firm had revenue of $116.07 million for the quarter, compared to analysts’ expectations of $121.45 million. MicroStrategy had a negative net margin of 87.05% and a negative return on equity of 17.31%. MicroStrategy’s revenue for the quarter was down 10.3% compared to the same quarter last year. During the same period last year, the firm earned ($8.98) earnings per share.

Insider Activity

In other news, CAO Jeanine Montgomery sold 752 shares of the 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 in the company, valued at $2,069,484.10. This represents a 10.49 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Stephen X. Graham sold 20,000 shares of MicroStrategy stock in a transaction that occurred on Thursday, November 21st. The stock was sold at an average price of $451.36, for a total value of $9,027,200.00. Following the transaction, the director now owns 6,970 shares in the company, valued at approximately $3,145,979.20. The trade was a 74.16 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 102,000 shares of company stock worth $32,259,177 in the last ninety days. Company insiders own 13.18% of the company’s stock.

Institutional Trading of MicroStrategy

Several hedge funds have recently made changes to their positions in the company. Savant Capital LLC raised its position in MicroStrategy by 2.6% in the second quarter. Savant Capital LLC now owns 599 shares of the software maker’s stock valued at $825,000 after purchasing an additional 15 shares during the period. Ballentine Partners LLC lifted its position in MicroStrategy by 5.0% in the second quarter. Ballentine Partners LLC now owns 313 shares of the software maker’s stock valued at $431,000 after buying an additional 15 shares during the last quarter. Larson Financial Group LLC boosted its stake in MicroStrategy by 72.3% during the second quarter. Larson Financial Group LLC now owns 81 shares of the software maker’s stock worth $112,000 after buying an additional 34 shares during the period. Versant Capital Management Inc increased 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 acquiring an additional 39 shares during the last quarter. Finally, Strategic Investment Solutions Inc. IL purchased a new stake in shares of MicroStrategy in the 2nd quarter valued at approximately $106,000. Hedge funds and other institutional investors own 59.84% of the company’s stock.

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.