MicroStrategy (NASDAQ:MSTR) Shares Surge 9.9% - Is it Still a Good Buy?

On Thursday, the share price of MicroStrategy Incorporated (NASDAQ:MSTR) rose by an impressive 9.9%. The stock hit a peak price of $397.66 before closing at $388.84. During the trading session, about 34,768,508 shares changed hands, marking an 88% increase compared to the average daily volume of 18,456,727 shares. The stock had previously closed at $353.69.

Analyst Insights on MicroStrategy

Recent Analyst Upgrades and Downgrades

MicroStrategy has recently been evaluated by several analysts. Maxim Group increased its target price for MSTR from $193.00 to $270.00, maintaining a "buy" rating on October 31st. Similarly, TD Cowen raised its price target from $392.00 to $525.00 while keeping a "buy" rating. BTIG Research also raised its target from $290.00 to $570.00 and maintained a "buy" rating on November 21st. In addition, Cantor Fitzgerald began coverage of MicroStrategy with an "overweight" rating and a target price of $194.00 back in August. Lastly, Benchmark adjusted its price target from $450.00 to $650.00, reaffirming a "buy" stance. Overall, one analyst has assigned a sell rating, while eight analysts recommend buying, resulting in a consensus rating of "Moderate Buy" and an average target price of $479.25 according to MarketBeat.com.

Performance Metrics of MicroStrategy

MicroStrategy's financial performance shows a quick ratio of 0.65 and a current ratio of 0.65. The debt-to-equity ratio stands at 1.12. Currently, the 50-day moving average is $243.51, while the 200-day moving average is $180.24. The company has a market capitalization of $78.79 billion and a price-to-earnings ratio of -184.55, alongside a beta of 3.05. In its latest earnings announcement on October 30th, MicroStrategy reported an earnings per share (EPS) of -$1.56, falling short of analyst expectations of -$0.12 by $1.44. The firm recorded revenue of $116.07 million for the quarter, missing the anticipated $121.45 million. This revenue marks a 10.3% decline compared to the same period last year, where the EPS was -$8.98.

Insider Trading Activity

In terms of insider activity, CFO Andrew Kang sold 5,700 shares on November 6th at an average price of $257.15, totaling approximately $1,465,755. Following this sale, he retains 12,080 shares, valued at around $3,106,372. This sale represents a 32.06% reduction in his ownership stake. In a similar instance, CAO Jeanine Montgomery sold 56,250 shares on the same day at an average price of $257.41, worth $14,479,312.50, reducing her holdings by 90.84%. Recently, insiders sold a total of 102,000 shares worth $32,259,177, and currently, insiders own 13.18% of MicroStrategy's stock.

Institutional Investors' Movements in MicroStrategy

Several institutional investors have shifted their positions in MicroStrategy. Thurston Springer Miller Herd & Titak acquired a new stake in the second quarter valued at around $37,000. GAMMA Investing LLC increased its holdings by 36.4%, now owning 30 shares worth $41,000. Signaturefd LLC also bought additional shares, boosting its stake by 13.6%. Strategic Investment Solutions, Inc. IL invested about $106,000 in a new position, while Larson Financial Group LLC increased its position by 72.3%, now holding 81 shares valued at $112,000. Institutional investors and hedge funds collectively own 72.03% of MicroStrategy's stock.

About MicroStrategy Incorporated

MicroStrategy Incorporated specializes in providing artificial intelligence-driven enterprise analytics software and services across various regions, including the United States, Europe, and the Middle East. Their flagship product, MicroStrategy ONE, allows non-technical users to access actionable insights for better decision-making. They also offer a Cloud service for Government that includes continuous threat monitoring tailored to meet government and financial institution standards.

MicroStrategy, Stocks, Analysts