MicroStrategy (NASDAQ:MSTR) Trading Down 4.4% - Here's Why

MicroStrategy Incorporated (NASDAQ:MSTR - Get Free Report)'s share price dropped 4.4% during trading on Tuesday . The company traded as low as $387.93 and last traded at $390.60. Approximately 8,399,980 shares were traded during trading, a decline of 55% from the average daily volume of 18,791,889 shares. The stock had previously closed at $408.50.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on MSTR. Cantor Fitzgerald assumed coverage on shares of MicroStrategy in a report on Wednesday, August 21st. They issued an "overweight" rating and a $194.00 target price on the stock. Sanford C. Bernstein reiterated an "outperform" rating and set a $600.00 target price on shares of MicroStrategy in a research report on Thursday, December 12th. TD Cowen increased their target price on MicroStrategy from $392.00 to $525.00 and gave the stock a "buy" rating in a research note on Monday, November 25th. Barclays lifted their price target on MicroStrategy from $275.00 to $515.00 and gave the company an "overweight" rating in a research note on Monday, November 25th. Finally, Canaccord Genuity Group increased their price objective on MicroStrategy from $300.00 to $510.00 and gave the stock a "buy" rating in a research report on Monday, November 25th. One research 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 presently has a consensus rating of "Moderate Buy" and an average target price of $479.25.

MicroStrategy Stock Down 5.4 %

The firm has a market capitalization of $78.31 billion, a PE ratio of -183.14 and a beta of 3.17. The firm's 50-day moving average is $311.94 and its 200 day moving average is $205.02. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.65 and a current ratio of 0.65.

MicroStrategy (NASDAQ:MSTR - Get Free Report) last released 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). MicroStrategy had a negative net margin of 87.05% and a negative return on equity of 17.31%. The business had revenue of $116.07 million during the quarter, compared to analyst estimates of $121.45 million. During the same quarter in the prior year, the company earned ($8.98) earnings per share. The firm's revenue for the quarter was down 10.3% compared to the same quarter last year.

Insider Activity at MicroStrategy

In related news, Director Stephen X. Graham sold 20,000 shares of the company's stock in a transaction on Thursday, November 21st. The stock was sold at an average price of $451.36, for a total value of $9,027,200.00. Following the completion of the transaction, the director now directly owns 6,970 shares in the company, valued at approximately $3,145,979.20. This represents a 74.16 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CAO Jeanine Montgomery sold 56,250 shares of the stock in a transaction dated Wednesday, November 6th. The stock was 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 in the company, 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 have sold a total of 102,000 shares of company stock valued at $32,259,177 over the last quarter. Insiders own 13.18% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of MSTR. B. Riley Wealth Advisors Inc. purchased a new stake in shares of MicroStrategy during the 3rd quarter worth about $254,000. Beaird Harris Wealth Management LLC boosted its position in shares of MicroStrategy by 1,105.2% in the third quarter. Beaird Harris Wealth Management LLC now owns 4,640 shares of the software maker's stock worth $782,000 after buying an additional 4,255 shares during the period. Franklin Resources Inc. grew its stake in shares of MicroStrategy by 3.3% in the third quarter. Franklin Resources Inc. now owns 4,248 shares of the software maker's stock valued at $716,000 after buying an additional 135 shares in the last quarter. Peapack Gladstone Financial Corp raised its holdings in shares of MicroStrategy by 900.0% during the 3rd quarter. Peapack Gladstone Financial Corp now owns 2,350 shares of the software maker's stock valued at $396,000 after buying an additional 2,115 shares during the period. Finally, Sanctuary Advisors LLC lifted its position in MicroStrategy by 3,250.8% during the 3rd quarter. Sanctuary Advisors LLC now owns 14,442 shares of the software maker's stock worth $2,435,000 after acquiring an additional 14,011 shares in the last quarter. Institutional investors and hedge funds 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.