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

MicroStrategy Incorporated (NASDAQ:MSTR)’s share price 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 were traded during trading, a decline of 95% from the average daily volume of 16,329,228 shares. The stock had previously closed at $141.47.

A number of other analysts also recently weighed in on MSTR. Maxim Group lifted their price target on MicroStrategy from $183.50 to $193.00 and gave the company a “buy” rating in a research note on Friday, August 2nd. Barclays started coverage on shares of MicroStrategy in a research note on Friday, September 6th. They set an “overweight” rating and a $146.00 price target on the stock. Benchmark raised their price objective on shares of MicroStrategy from $187.50 to $215.00 and gave the company a “buy” rating in a research note on Friday, August 2nd. Cantor Fitzgerald assumed coverage on shares of MicroStrategy in a report on Wednesday, August 21st. They set an “overweight” rating and a $194.00 price objective on the stock. Finally, Sanford C. Bernstein raised shares of MicroStrategy to a “strong-buy” rating in a report on Friday, June 14th. One analyst has rated the stock with a sell rating, seven have issued a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, MicroStrategy currently has a consensus rating of “Moderate Buy” and a consensus target price of $197.25.

Insider Activity

In related news, EVP Wei-Ming Shao sold 3,000 shares of MicroStrategy stock in a transaction dated 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 approximately $912,152. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. In other MicroStrategy news, EVP Wei-Ming Shao sold 3,000 shares of MicroStrategy 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 directly owns 6,460 shares of the company’s stock, valued at approximately $912,152. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Phong Le sold 50,000 shares of the business’s stock in a transaction 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 owns 12,670 shares of the company’s stock, valued at $1,752,007.60. The disclosure for this sale can be found here. Insiders have sold 101,838 shares of company stock worth $13,950,265 over the last three months. 13.18% of the stock is currently owned by corporate insiders.

Institutional Trading of MicroStrategy

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. ST Germain D J Co. Inc. acquired a new stake in shares of MicroStrategy in the first quarter worth approximately $29,000. Principal Securities Inc. acquired a new stake in shares of MicroStrategy during the 4th quarter worth $31,000. Rise Advisors LLC raised its position in shares of MicroStrategy by 233.3% in the 1st quarter. Rise Advisors LLC now owns 20 shares of the software maker’s stock worth $34,000 after buying an additional 14 shares during the period. Thurston Springer Miller Herd & Titak Inc. acquired a new position in MicroStrategy in the second quarter valued at $37,000. Finally, GAMMA Investing LLC grew its position in MicroStrategy by 36.4% during the second quarter. GAMMA Investing LLC now owns 30 shares of the software maker’s stock valued at $41,000 after acquiring an additional 8 shares during the period. Hedge funds and other institutional investors own 72.03% of the company’s stock.

MicroStrategy Price Performance

The company has a 50 day simple moving average of $142.01 and a 200 day simple moving average of $144.31. The company has a market capitalization of $23.97 billion, a price-to-earnings ratio of -20.01 and a beta of 3.10. The company has a quick ratio of 0.47, a current 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). The business had revenue of $111.44 million for the quarter, compared to analyst estimates of $121.99 million. MicroStrategy had a negative return on equity of 14.72% and a negative net margin of 43.69%. During the same period last year, the company posted $0.15 EPS. The firm’s revenue for the quarter 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.