MicroStrategy (NASDAQ:MSTR) Shares Gap Down – Here’s Why

Shares of MicroStrategy Incorporated (NASDAQ:MSTR) gapped down before the market opened on Tuesday . The stock had previously closed at $294.27, but opened at $283.20. MicroStrategy shares last traded at $278.95, with a volume of 2,709,108 shares.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Keefe, Bruyette & Woods assumed coverage on MicroStrategy in a report on Friday, February 7th. They set an “outperform” rating and a $560.00 target price for the company. Compass Point upgraded MicroStrategy to a “strong-buy” rating in a report on Wednesday, January 29th. Barclays lowered their target price on MicroStrategy from $515.00 to $421.00 and set an “overweight” rating for the company in a report on Monday, February 10th. TD Cowen raised their price objective on MicroStrategy from $392.00 to $525.00 and gave the company a “buy” rating in a report on Monday, November 25th. Finally, Sanford C. Bernstein restated an “outperform” rating and issued a $600.00 price objective on shares of MicroStrategy in a report on Thursday, December 12th. One equities research analyst has rated the stock with a hold rating, nine have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $536.90.

MicroStrategy Price Performance

The firm has a market capitalization of $78.29 billion, a price-to-earnings ratio of -54.01 and a beta of 3.36. The company’s 50 day moving average is $318.18 and its 200-day moving average is $285.38. The company has a current ratio of 0.71, a quick ratio of 0.65 and a debt-to-equity ratio of 0.39.

MicroStrategy (NASDAQ:MSTR) last issued its earnings results on Wednesday, February 5th. The software maker reported ($3.20) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.13) by ($3.07). MicroStrategy had a negative net margin of 251.73% and a negative return on equity of 19.01%.

Institutional Investors Weigh In On MicroStrategy

Hedge funds have recently bought and sold shares of the company. Geode Capital Management LLC lifted its position in MicroStrategy by 10.2% during the fourth quarter. Geode Capital Management LLC now owns 3,047,625 shares of the software maker’s stock worth $881,470,000 after acquiring an additional 281,342 shares during the last quarter. Norges Bank acquired a new stake in MicroStrategy during the fourth quarter worth approximately $523,981,000. Northern Trust Corp lifted its position in MicroStrategy by 24.4% during the fourth quarter. Northern Trust Corp now owns 1,076,185 shares of the software maker’s stock worth $311,685,000 after acquiring an additional 210,997 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in MicroStrategy by 25.4% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 802,464 shares of the software maker’s stock worth $232,410,000 after acquiring an additional 162,757 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its position in MicroStrategy by 14.7% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 761,776 shares of the software maker’s stock worth $220,626,000 after acquiring an additional 97,515 shares during the last quarter. 59.84% 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.