MicroStrategy Incorporated (NASDAQ:MSTR) experienced robust trading activity on Tuesday, with over 2.2 million shares changing hands, marking a 30% increase from the previous session. The stock, which closed at $1,160.00, had previously settled at $1,334.01.
Analyst Insights:
Several brokerages have recently provided their perspective on MicroStrategy. BTIG Research raised their target price from $560.00 to $690.00, affirming a “buy” rating. StockNews.com upgraded the stock to “sell,” while Benchmark initiated coverage with a “buy” rating and a target price of $990.00. Canaccord Genuity Group also lifted their target price to $791.00, maintaining a “buy” rating. TheStreet revised their rating from “d+” to “c-“. Currently, the consensus among analysts suggests a “Moderate Buy” rating with a target price of $684.20.
Financial Snapshot:
MicroStrategy boasts a market capitalization of $18.90 billion, with a price-to-earnings (P/E) ratio of 40.24 and a beta of 2.82. Its fifty-day and two-hundred-day moving averages stand at $634.69 and $498.10, respectively. The company’s current and quick ratios are both at 0.83, while the debt-to-equity ratio sits at 1.01.
Quarterly Earnings:
In its latest quarterly earnings report released on February 6th, MicroStrategy recorded earnings per share of $5.62, with revenue totaling $124.48 million. Though slightly below the consensus estimate of $134.90 million, the company maintains a strong net margin of 86.47% and a return on equity of 42.81%.
Recent insider activity includes EVP Wei-Ming Shao’s sale of 3,000 shares on February 27th at an average price of $852.74, totaling $2,558,220. Additionally, CEO Phong Le sold 10,000 shares on the same day at an average price of $861.24, amounting to $8,612,400. In the past 90 days, insiders have collectively sold 113,725 shares valued at $68,565,776, representing 22.59% of the company’s shares.
Institutional Investment:
Institutional investors and hedge funds have shown significant interest in MicroStrategy. California Public Employees Retirement System, UBS Group AG, Kestra Advisory Services LLC, LPL Financial LLC, and Barclays PLC have all increased their positions in the company, with institutional ownership currently standing at 49.44%.
MicroStrategy Profile:
The company specializes in providing artificial intelligence-powered enterprise analytics software and services worldwide. Its flagship product, MicroStrategy ONE, enables non-technical users to access actionable insights for decision-making. The company also offers MicroStrategy Cloud for Government, catering to the unique technical and regulatory requirements of governmental and financial institutions.
MicroStrategy’s recent surge in trading volume, coupled with positive analyst ratings and strong financial performance, indicates growing investor confidence in the company’s future prospects. With a robust suite of analytics solutions and a solid track record, MicroStrategy remains well-positioned in the competitive landscape of enterprise software.
