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

MicroStrategy Incorporated (NASDAQ:MSTR)’s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $379.09, but opened at $366.47. MicroStrategy shares last traded at $366.95, with a volume of 3,407,643 shares.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on MSTR. Canaccord Genuity Group lifted their price target on MicroStrategy from $300.00 to $510.00 and gave the stock a “buy” rating in a research note on Monday, November 25th. Barclays increased their target price on shares of MicroStrategy from $275.00 to $515.00 and gave the company an “overweight” rating in a research report on Monday, November 25th. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $600.00 price objective on shares of MicroStrategy in a research note on Thursday, December 12th. Benchmark reissued a “buy” rating and issued a $650.00 target price on shares of MicroStrategy in a research note on Monday. Finally, Maxim Group upped their price target on MicroStrategy from $193.00 to $270.00 and gave the company a “buy” rating in a research report on Thursday, October 31st. One investment analyst has rated the stock with a sell rating and eight have assigned a buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $479.25.

MicroStrategy Trading Down 8.0 %

The stock has a market cap of $83.57 billion, a PE ratio of -165.50 and a beta of 3.25. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.65 and a current ratio of 0.65. The company’s 50-day moving average price is $345.91 and its 200 day moving average price is $222.45.

MicroStrategy (NASDAQ:MSTR) last announced its quarterly earnings results on Wednesday, October 30th. The software maker reported ($1.56) EPS for the quarter, missing the consensus estimate of ($0.12) by ($1.44). The business had revenue of $116.07 million during the quarter, compared to analyst estimates of $121.45 million. MicroStrategy had a negative net margin of 87.05% and a negative return on equity of 17.31%. The business’s revenue for the quarter was down 10.3% on a year-over-year basis. During the same period last year, the company earned ($8.98) EPS.

Insiders Place Their Bets

In other news, CFO Andrew Kang sold 5,700 shares of MicroStrategy stock in a transaction on Wednesday, November 6th. The stock was sold at an average price of $257.15, for a total value of $1,465,755.00. Following the completion of the sale, the chief financial officer now directly owns 12,080 shares of the company’s stock, valued at approximately $3,106,372. The trade was a 32.06 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CAO Jeanine Montgomery sold 56,250 shares of the firm’s stock in a transaction dated Wednesday, November 6th. The shares were sold at an average price of $257.41, for a total value of $14,479,312.50. Following the transaction, the chief accounting officer now owns 5,670 shares of the company’s stock, valued at $1,459,514.70. This trade represents a 90.84 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 102,000 shares of company stock valued at $32,259,177 over the last 90 days. 13.18% of the stock is owned by company insiders.

Institutional Investors Weigh In On MicroStrategy

A number of hedge funds have recently added to or reduced their stakes in MSTR. Geode Capital Management LLC increased its position in shares of MicroStrategy by 990.6% during the third quarter. Geode Capital Management LLC now owns 2,766,283 shares of the software maker’s stock worth $465,573,000 after acquiring an additional 2,512,645 shares during the period. Charles Schwab Investment Management Inc. grew its stake in MicroStrategy by 587.4% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 664,261 shares of the software maker’s stock worth $111,994,000 after purchasing an additional 567,628 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in MicroStrategy by 971.3% during the 3rd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 639,707 shares of the software maker’s stock worth $107,855,000 after purchasing an additional 579,994 shares during the period. Swiss National Bank raised its position in MicroStrategy by 904.7% in the 3rd quarter. Swiss National Bank now owns 468,200 shares of the software maker’s stock valued at $78,939,000 after purchasing an additional 421,600 shares in the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. boosted its stake in shares of MicroStrategy by 1,077.0% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 343,164 shares of the software maker’s stock valued at $57,857,000 after buying an additional 314,007 shares during the period. 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.