MicroStrategy (NASDAQ:MSTR) Shares Gap Down - Should You Sell?

MicroStrategy Incorporated (NASDAQ:MSTR - Get Free Report) gapped down prior to trading 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.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Compass Point raised MicroStrategy to a "strong-buy" rating in a research report on Wednesday, January 29th. Barclays cut their target price on MicroStrategy from $515.00 to $421.00 and set an "overweight" rating on the stock in a research note on Monday, February 10th. Keefe, Bruyette & Woods initiated coverage on MicroStrategy in a research note on Friday, February 7th. They issued an "outperform" rating and a $560.00 price target for the company. Canaccord Genuity Group lowered their price target on MicroStrategy from $510.00 to $409.00 and set a "buy" rating on the stock in a report on Thursday, February 6th. Finally, Sanford C. Bernstein reiterated 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 assigned a strong buy rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus target price of $536.90.

MicroStrategy Price Performance

The firm has a 50-day simple moving average of $317.59 and a 200-day simple moving average of $285.50. The firm has a market capitalization of $78.24 billion, a PE ratio of -53.97 and a beta of 3.36. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.71 and a quick ratio of 0.65.

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MicroStrategy (NASDAQ:MSTR - Get Free Report) last posted its quarterly earnings data on Wednesday, February 5th. 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 19.01% and a negative net margin of 251.73%.

Institutional Investors Weigh In On MicroStrategy

A number of hedge funds have recently modified their holdings of MSTR. GSA Capital Partners LLP purchased a new position in MicroStrategy during the third quarter valued at $261,000. Victory Capital Management Inc. raised its stake in shares of MicroStrategy by 894.7% in the third quarter. Victory Capital Management Inc. now owns 57,830 shares of the software maker's stock worth $9,750,000 after buying an additional 52,016 shares during the period. Oppenheimer & Co. Inc. bought a new position in shares of MicroStrategy in the third quarter worth about $238,000. CIBC Asset Management Inc lifted its position in shares of MicroStrategy by 935.8% during the 3rd quarter. CIBC Asset Management Inc now owns 4,340 shares of the software maker's stock valued at $732,000 after buying an additional 3,921 shares in the last quarter. Finally, Empowered Funds LLC bought a new position in shares of MicroStrategy during the 3rd quarter valued at approximately $440,000. Institutional investors own 59.84% of the company's stock.

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.