MicroStrategy (NASDAQ:MSTR) Trading 9.9% Higher - Still a Buy?

MicroStrategy Incorporated (NASDAQ:MSTR) saw its share price increase by 9.9% during trading on Thursday. The stock reached a high of $397.66 before settling at $388.84. In total, around 34,768,508 shares exchanged hands, marking an 88% surge from the typical daily trading volume of 18,456,727 shares. Previously, the stock closed at $353.69.

Market Insights on MicroStrategy

Analyst Ratings

MicroStrategy has recently been a focal point in the investment community, attracting various analyst reports. For instance, Maxim Group raised their price target for MicroStrategy from $193.00 to $270.00, recommending the stock as a "buy" in their report on October 31st. Similarly, TD Cowen lifted their price target from $392.00 to $525.00 and maintained a "buy" stance. On November 21st, BTIG Research also boosted their target price from $290.00 to $570.00 with a "buy" rating. Cantor Fitzgerald began coverage with an "overweight" rating and a target of $194.00. Moreover, Benchmark increased their target from $450.00 to $650.00 while suggesting a "buy" rating. Presently, one analyst holds a sell rating for the stock, while eight recommend it as a buy. Data from MarketBeat indicates that the consensus rating for MicroStrategy remains a "Moderate Buy", with an average price target of $479.25.

Recent Price Performance

The company's current financial position reveals a quick ratio of 0.65, a current ratio of 0.65, and a debt-to-equity ratio of 1.12. MicroStrategy's stock exhibits a market capitalization of $78.79 billion, with its price-to-earnings ratio standing at -184.55. Over the past 50 days, the stock has averaged $243.51, while its 200-day moving average is $180.24.

MicroStrategy reported its latest earnings results on October 30th, revealing an earnings per share (EPS) of ($1.56), which fell short of analysts' expected EPS of ($0.12) by a significant margin of $1.44. The company recorded revenue of $116.07 million, below the expected $121.45 million. Notably, the revenue for this quarter marked a 10.3% decline compared to the same quarter a year prior, where the firm recorded an EPS of ($8.98).

Insider Activity

In recent insider trading, CFO Andrew Kang sold 5,700 shares of MicroStrategy on November 6th, with an average selling price of $257.15, resulting in a total transaction value of approximately $1.47 million. After this sale, he reduced his holdings in the company by 32.06%, currently owning 12,080 shares valued around $3.1 million. Additionally, CAO Jeanine Montgomery sold 56,250 shares on November 6th at an average price of $257.41, resulting in a total of $14.48 million. As a consequence, she now holds just 5,670 shares, a decrease of 90.84% in her ownership. Over the past quarter, insiders collectively sold 102,000 shares worth $32.26 million, with insiders currently holding 13.18% of the company's stock.

Institutional Investor Movements

Recent changes in institutional investment show a diverse range of activities. For example, Thurston Springer Miller Herd & Titak Inc. acquired a new stake in MicroStrategy valued at approximately $37,000 in the second quarter. GAMMA Investing LLC increased its holdings by 36.4%, now owning 30 shares worth $41,000. Signaturefd LLC expanded their position by 13.6%, ending the quarter with 50 shares valued at $69,000. Strategic Investment Solutions Inc. IL also entered the market with a new stake of about $106,000. Larson Financial Group LLC saw a significant increase of 72.3% in their stake, acquiring 81 shares valued at $112,000. Institutional investors and hedge funds together hold 72.03% of MicroStrategy’s stock.

About MicroStrategy

MicroStrategy Incorporated is known for offering enterprise analytics software and services powered by artificial intelligence, catering to both domestic and international markets including Europe, the Middle East, and Africa. Its flagship product, MicroStrategy ONE, empowers non-technical users to derive actionable insights for informed decision-making. Additionally, the company provides MicroStrategy Cloud for Government with continuous threat monitoring tailored to meet the stringent technical and regulatory demands of various governmental and financial institutions.

Conclusion

Considering the recent uptick in MicroStrategy’s stock price and the varying opinions from analysts, investors are left pondering whether the company is still a viable option for their portfolios.

MicroStrategy, Stocks, Investors