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

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

The software maker reported ($3.20) 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%.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. 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. TD Cowen upped their target price on shares of MicroStrategy from $392.00 to $525.00 and gave the stock a “buy” rating in a report on Monday, November 25th. Mizuho started coverage on shares of MicroStrategy in a research report on Wednesday, January 29th. They set an “outperform” rating and a $515.00 price target for the company. Barclays increased their price objective on MicroStrategy from $275.00 to $515.00 and gave the stock an “overweight” rating in a research report on Monday, November 25th. Finally, Keefe, Bruyette & Woods initiated coverage on MicroStrategy in a research report on Friday. They set an “outperform” rating and a $560.00 target price for the company. One investment analyst has rated the stock with a sell rating, ten have issued a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $546.30.

Insider Activity

In related news, EVP Wei-Ming Shao sold 18,000 shares of the stock in a transaction dated Wednesday, November 13th. The stock was sold at an average price of $368.01, for a total transaction of $6,624,180.00. Following the completion of the sale, the executive vice president now directly owns 6,460 shares in the company, valued at $2,377,344.60. This represents a 73.59 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Jeanine Montgomery sold 752 shares of the firm’s stock in a transaction that occurred on Thursday, November 14th. The stock was sold at an average price of $322.45, for a total value of $242,482.40. Following the transaction, the chief accounting officer now owns 6,418 shares in the company, valued at approximately $2,069,484.10. The trade was a 10.49 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 40,050 shares of company stock worth $16,314,110. 9.16% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Thrivent Financial for Lutherans grew its holdings in MicroStrategy by 141.8% in the 2nd quarter. Thrivent Financial for Lutherans now owns 341 shares of the software maker’s stock worth $470,000 after acquiring an additional 200 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in MicroStrategy by 144.0% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 183 shares of the software maker’s stock valued at $252,000 after purchasing an additional 108 shares during the period. Sanctuary Advisors LLC bought a new position in MicroStrategy during the 2nd quarter valued at approximately $553,000. GAMMA Investing LLC raised its position in MicroStrategy by 1,096.7% during the 3rd quarter. GAMMA Investing LLC now owns 359 shares of the software maker’s stock valued at $61,000 after purchasing an additional 329 shares during the last quarter. Finally, Dynamic Advisor Solutions LLC lifted its holdings in MicroStrategy by 951.5% in the 3rd quarter. Dynamic Advisor Solutions LLC now owns 7,781 shares of the software maker’s stock worth $1,312,000 after buying an additional 7,041 shares during the period. Institutional investors own 59.84% of the company’s stock.

MicroStrategy Trading Up 0.6 %

The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.65 and a current ratio of 0.65. The stock has a market capitalization of $78.50 billion, a P/E ratio of -155.46 and a beta of 3.25. The stock has a 50-day moving average price of $356.27 and a two-hundred day moving average price of $254.50.

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.