MicroStrategy (NASDAQ:MSTR) Stock Price Down 2.3% on Disappointing Earnings

MicroStrategy Incorporated (NASDAQ:MSTR)’s stock price was down 2.3% during mid-day trading on Thursday following a dissappointing earnings announcement. The company traded as low as $237.00 and last traded at $241.70. Approximately 9,023,287 shares changed hands during trading, a decline of 45% from the average daily volume of 16,515,920 shares. The stock had previously closed at $247.31.

The software maker reported ($1.56) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.12) by ($1.44). MicroStrategy had a negative net margin of 43.69% and a negative return on equity of 14.72%. The business had revenue of $116.07 million during the quarter, compared to analyst estimates of $121.45 million. During the same quarter last year, the business posted ($8.98) earnings per share. The business’s quarterly revenue was down 10.3% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on MSTR shares. Barclays boosted their target price on MicroStrategy from $173.00 to $225.00 and gave the stock an “overweight” rating in a research report on Monday, October 14th. Benchmark lifted their price objective on shares of MicroStrategy from $245.00 to $300.00 and gave the stock a “buy” rating in a research note on Thursday. TD Cowen upped their price objective on shares of MicroStrategy from $200.00 to $300.00 and gave the company a “buy” rating in a research report on Thursday. Sanford C. Bernstein lowered their target price on MicroStrategy from $2,890.00 to $290.00 and set an “outperform” rating for the company in a research note on Wednesday, October 9th. Finally, BTIG Research increased their target price on MicroStrategy from $180.00 to $240.00 and gave the stock a “buy” rating in a report on Monday, October 21st. 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 data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $264.88.

Insider Buying and Selling at MicroStrategy

In other news, CEO Phong Le sold 48,838 shares of the stock in a transaction dated Friday, August 16th. The shares were sold at an average price of $135.40, for a total transaction of $6,612,665.20. Following the completion of the transaction, the chief executive officer now directly owns 12,670 shares in the company, valued at $1,715,518. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. In other news, CEO Phong Le sold 48,838 shares of the company’s stock in a transaction that occurred on Friday, August 16th. The stock was sold at an average price of $135.40, for a total transaction of $6,612,665.20. Following the sale, the chief executive officer now owns 12,670 shares in the company, valued at $1,715,518. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Wei-Ming Shao sold 3,000 shares of the stock in a transaction that occurred on Thursday, August 22nd. The shares were sold at an average price of $141.20, for a total value of $423,600.00. Following the completion of the sale, the executive vice president now directly owns 6,460 shares of the company’s stock, valued at approximately $912,152. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 101,838 shares of company stock worth $13,950,265. Insiders own 13.18% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of MSTR. Thurston Springer Miller Herd & Titak Inc. bought a new position in shares of MicroStrategy in the second quarter valued at about $37,000. GAMMA Investing LLC lifted its stake in MicroStrategy by 36.4% in the 2nd quarter. GAMMA Investing LLC now owns 30 shares of the software maker’s stock valued at $41,000 after purchasing an additional 8 shares during the last quarter. Allspring Global Investments Holdings LLC acquired a new stake in MicroStrategy in the first quarter valued at approximately $58,000. FinTrust Capital Advisors LLC bought a new stake in shares of MicroStrategy during the first quarter worth $85,000. Finally, Signaturefd LLC increased its holdings in shares of MicroStrategy by 13.6% during the second quarter. Signaturefd LLC now owns 50 shares of the software maker’s stock worth $69,000 after buying an additional 6 shares in the last quarter. 72.03% of the stock is currently owned by institutional investors and hedge funds.

MicroStrategy Stock Down 1.1 %

The company has a current ratio of 0.47, a quick ratio of 0.47 and a debt-to-equity ratio of 1.31. The company has a market capitalization of $43.37 billion, a P/E ratio of -175.14 and a beta of 3.11. The stock has a 50 day moving average price of $168.11 and a 200 day moving average price of $152.28.

About MicroStrategy

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.