MicroStrategy (NASDAQ:MSTR) Trading Down 2.1% After Earnings Miss

MicroStrategy Incorporated (NASDAQ:MSTR)’s stock price traded down 2.1% during trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $340.16 and last traded at $340.96. 2,918,263 shares traded hands during trading, a decline of 84% from the average session volume of 18,110,059 shares. The stock had previously closed at $348.31.

The software maker reported ($3.20) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.13) by ($3.07). MicroStrategy had a negative return on equity of 17.31% and a negative net margin of 87.05%.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on MSTR. Maxim Group increased their price target on shares of MicroStrategy from $480.00 to $500.00 and gave the stock a “buy” rating in a report on Thursday. Barclays boosted 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. Canaccord Genuity Group decreased their price objective on MicroStrategy from $510.00 to $409.00 and set a “buy” rating for the company in a report on Thursday. Sanford C. Bernstein reiterated an “outperform” rating and set a $600.00 price target on shares of MicroStrategy in a research report on Thursday, December 12th. Finally, BTIG Research raised 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. One investment analyst has rated the stock with a sell rating, ten have given a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $546.30.

Insiders Place Their Bets

In other MicroStrategy news, EVP Wei-Ming Shao sold 18,000 shares of MicroStrategy stock in a transaction dated Wednesday, November 13th. The shares were sold at an average price of $368.01, for a total transaction of $6,624,180.00. Following the transaction, the executive vice president now directly owns 6,460 shares of the company’s stock, valued at $2,377,344.60. The trade was a 73.59 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Stephen X. Graham sold 20,000 shares of the stock in a transaction that occurred on Thursday, November 21st. The shares were sold at an average price of $451.36, for a total transaction of $9,027,200.00. Following the completion of the sale, the director now directly owns 6,970 shares of the company’s stock, valued at approximately $3,145,979.20. This trade represents a 74.16 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 40,050 shares of company stock valued at $16,314,110 in the last ninety days. 9.16% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Geode Capital Management LLC increased its stake in 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 last quarter. Charles Schwab Investment Management Inc. grew its holdings in shares of MicroStrategy by 14.7% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 761,776 shares of the software maker’s stock worth $220,626,000 after purchasing an additional 97,515 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of 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 last quarter. Amundi raised its holdings in MicroStrategy by 262.8% in the 4th quarter. Amundi now owns 570,217 shares of the software maker’s stock valued at $165,146,000 after buying an additional 413,028 shares during the period. Finally, Swiss National Bank lifted its position in MicroStrategy by 904.7% in the third quarter. Swiss National Bank now owns 468,200 shares of the software maker’s stock valued at $78,939,000 after buying an additional 421,600 shares during the last quarter. 59.84% of the stock is currently owned by institutional investors and hedge funds.

MicroStrategy Trading Up 0.6 %

The company has a market cap of $78.50 billion, a PE ratio of -155.46 and a beta of 3.25. The company’s 50 day simple moving average is $356.27 and its two-hundred day simple moving average is $254.50. The company has a debt-to-equity ratio of 1.12, a current ratio of 0.65 and a quick ratio of 0.65.

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.