MicroStrategy (NASDAQ:MSTR) Shares Rise 5.2% – What Comes Next?

On January 5th, 2025, MicroStrategy Incorporated (NASDAQ:MSTR) saw its stock price increase by 5.2% during trading, reaching a high of $317.13 and ending the day at $315.64. Around 5,355,650 shares changed hands that day, which is a 52% decrease compared to the average daily trading volume of 11,090,482 shares. The previous closing price was $300.01.

Analysts Adjust Price Targets

Multiple research analysts have recently provided updates regarding MicroStrategy's stock. Sanford C. Bernstein reaffirmed an “outperform” rating with a price target set at $600.00 in a report dated December 12th. BTIG Research raised their target from $290.00 to $570.00, rating the stock as a “buy” on November 21st. Maxim Group increased their target from $193.00 to $270.00, also giving a “buy” rating on October 31st. Barclays adjusted their price objective from $275.00 to $515.00, labeling it as “overweight,” while Benchmark raised their target from $450.00 to $650.00 with a “buy” recommendation on November 25th. Currently, one research analyst has issued a sell rating, whereas eight have rated it as a buy. Overall, the consensus from analysts reflects a “Moderate Buy” with an average price target of $479.25.

Stay updated on MicroStrategy's stock analysis.

Recent Trading Performance

Currently, MicroStrategy's fifty-day moving average price stands at $343.44, and its 200-day moving average price is at $220.29. The company has a market capitalization of $81.40 billion and a P/E ratio of -161.20, with a beta of 3.25. Its financial ratios indicate a debt-to-equity ratio of 1.12, current ratio of 0.65, and quick ratio of 0.65.

When MicroStrategy last reported its earnings on October 30th, it disclosed an EPS of ($1.56), which was significantly lower than the analysts’ consensus estimate of ($0.12), showing a miss of $1.44. The company's return on equity was negative at 17.31%, and it recorded a negative net margin of 87.05%. The revenue for the quarter was reported at $116.07 million, which fell short of the expected $121.45 million, marking a 10.3% decline compared to the previous year.

Insider Transactions

In recent insider trading activity, CAO Jeanine Montgomery sold 56,250 shares on November 6th at an average price of $257.41, totaling $14,479,312.50. After this transaction, Montgomery owns 5,670 shares valued at approximately $1,459,514.70, reflecting a decrease of 90.84% in her holdings. Additionally, CEO Phong Le sold 1,252 shares on November 14th for around $403,707.40 at an average price of $322.45, resulting in an 8.25% decrease in his ownership, leaving him with 13,918 shares worth about $4,487,859.10. Over the past ninety days, insiders have sold 102,000 shares valued at $32,259,177. Currently, insiders hold 13.18% of the company's stock.

Institutional Investor Actions

Several institutional investors have recently adjusted their positions in MicroStrategy. For instance, National Bank of Canada FI significantly increased its stake by 746.2% during the third quarter, acquiring an additional 18,207 shares for a total of 20,647 shares valued at $3,481,000. B. Riley Wealth Advisors entered into a new position worth $254,000. Wellington Management Group LLP boosted its stake by 979.8%, now owning 6,727 shares worth $1,134,000, while US Bancorp DE raised its holdings by 782.8%, totaling 4,255 shares valued at $717,000. Notably, Virtu Financial LLC increased its position by a staggering 10,398.4%, acquiring 224,245 shares worth $37,808,000. Overall, institutional investors currently hold 59.84% of MicroStrategy's stock.

About MicroStrategy

MicroStrategy Incorporated specializes in providing enterprise analytics software and services driven by artificial intelligence. It operates both in the United States and internationally, with key offerings such as MicroStrategy ONE for non-technical users to access insights for decision-making and its MicroStrategy Cloud for Government service, which provides stringent threat monitoring solutions.

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