MicroStrategy (NASDAQ:MSTR) Shares Gap Up – Should You Buy?

MicroStrategy Incorporated (NASDAQ:MSTR) gapped up prior to trading on Tuesday . The stock had previously closed at $302.96, but opened at $316.96. MicroStrategy shares last traded at $305.58, with a volume of 4,332,128 shares changing hands.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the company. Canaccord Genuity Group raised their target price on MicroStrategy from $300.00 to $510.00 and gave the stock a “buy” rating in a report on Monday, November 25th. BTIG Research lifted 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. TD Cowen upped their target price on shares of MicroStrategy from $392.00 to $525.00 and gave the company a “buy” rating in a research note on Monday, November 25th. Benchmark increased their target price on shares of MicroStrategy from $450.00 to $650.00 and gave the stock a “buy” rating in a report on Monday, November 25th. Finally, Barclays boosted their price target on shares of MicroStrategy from $275.00 to $515.00 and gave the company an “overweight” rating in a report on Monday, November 25th. One equities research analyst has rated the stock with a sell rating and eight have issued a buy rating to the stock. According to MarketBeat, MicroStrategy presently has a consensus rating of “Moderate Buy” and a consensus price target of $479.25.

MicroStrategy Trading Down 4.4 %

The firm has a market capitalization of $69.41 billion, a price-to-earnings ratio of -137.46 and a beta of 3.17. The business’s fifty day moving average is $340.05 and its 200 day moving average is $217.90. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 1.12.

MicroStrategy (NASDAQ:MSTR) last released its earnings results on Wednesday, October 30th. The software maker reported ($1.56) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.12) by ($1.44). The firm had revenue of $116.07 million for the quarter, compared to the consensus estimate of $121.45 million. MicroStrategy had a negative return on equity of 17.31% and a negative net margin of 87.05%. MicroStrategy’s revenue for the quarter was down 10.3% on a year-over-year basis. During the same quarter last year, the company posted ($8.98) EPS.

Insider Activity at MicroStrategy

In related news, CAO Jeanine Montgomery sold 56,250 shares of the firm’s stock in a transaction on Wednesday, November 6th. The shares were sold at an average price of $257.41, for a total value of $14,479,312.50. Following the completion of the transaction, the chief accounting officer now owns 5,670 shares of the company’s stock, valued at approximately $1,459,514.70. This trade represents a 90.84 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Stephen X. Graham sold 20,000 shares of MicroStrategy stock in a transaction 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 owns 6,970 shares in the company, valued at $3,145,979.20. The trade was a 74.16 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 102,000 shares of company stock valued at $32,259,177. 13.18% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of MSTR. UMB Bank n.a. raised its stake in shares of MicroStrategy by 900.0% during the 3rd quarter. UMB Bank n.a. now owns 150 shares of the software maker’s stock worth $25,000 after purchasing an additional 135 shares in the last quarter. AlphaMark Advisors LLC raised its position in MicroStrategy by 2,900.0% during the third quarter. AlphaMark Advisors LLC now owns 150 shares of the software maker’s stock worth $25,000 after acquiring an additional 145 shares in the last quarter. Capital Performance Advisors LLP bought a new stake in MicroStrategy during the third quarter worth $27,000. Sunbelt Securities Inc. lifted its stake in MicroStrategy by 900.0% in the third quarter. Sunbelt Securities Inc. now owns 160 shares of the software maker’s stock valued at $27,000 after acquiring an additional 144 shares during the last quarter. Finally, ST Germain D J Co. Inc. grew its position in shares of MicroStrategy by 900.0% in the 3rd quarter. ST Germain D J Co. Inc. now owns 170 shares of the software maker’s stock valued at $29,000 after acquiring an additional 153 shares during the period. 59.84% of the stock is owned by institutional investors and hedge funds.

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.