MicroStrategy (NASDAQ:MSTR) Stock Price Down 1.2% on Disappointing Earnings

MicroStrategy Incorporated (NASDAQ:MSTR)’s share price fell 1.2% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $328.50 and last traded at $332.61. 4,727,881 shares changed hands during mid-day trading, a decline of 74% from the average session volume of 17,870,152 shares. The stock had previously closed at $336.70.

The software maker reported ($3.20) EPS for the quarter, missing analysts’ consensus estimates of ($0.13) by ($3.07). MicroStrategy had a negative return on equity of 17.31% and a negative net margin of 87.05%.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Maxim Group boosted their price objective on shares of MicroStrategy from $193.00 to $270.00 and gave the stock a “buy” rating in a research note on Thursday, October 31st. Canaccord Genuity Group decreased their price target on MicroStrategy from $510.00 to $409.00 and set a “buy” rating for the company in a report on Thursday. BTIG Research lifted their price objective on shares of MicroStrategy from $290.00 to $570.00 and gave the company a “buy” rating in a research note on Thursday, November 21st. Sanford C. Bernstein restated an “outperform” rating and issued a $600.00 target price on shares of MicroStrategy in a research note on Thursday, December 12th. Finally, Compass Point raised shares of MicroStrategy to a “strong-buy” rating in a research note on Wednesday, January 29th. One research analyst has rated the stock with a sell rating, nine have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $519.22.

Insider Activity

In related news, Director Stephen X. Graham sold 20,000 shares of the business’s stock in a transaction that occurred on Thursday, November 21st. The stock was sold at an average price of $451.36, for a total transaction of $9,027,200.00. Following the completion of the transaction, 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 position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Jeanine Montgomery sold 752 shares of the company’s stock in a transaction on Thursday, November 14th. The stock was sold at an average price of $322.45, for a total value of $242,482.40. Following the transaction, the chief accounting officer now owns 6,418 shares of the company’s stock, valued at approximately $2,069,484.10. The trade was a 10.49 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 40,050 shares of company stock worth $16,314,110. 9.16% of the stock is currently owned by insiders.

Hedge Funds Weigh In On MicroStrategy

Institutional investors have recently modified their holdings of the company. GPS Wealth Strategies Group LLC grew its position in MicroStrategy by 3.2% in the 4th quarter. GPS Wealth Strategies Group LLC now owns 1,120 shares of the software maker’s stock worth $324,000 after purchasing an additional 35 shares during the last quarter. Versant Capital Management Inc grew its holdings in MicroStrategy by 38.2% in the 4th quarter. Versant Capital Management Inc now owns 141 shares of the software maker’s stock worth $41,000 after buying an additional 39 shares in the last quarter. WR Wealth Planners LLC increased its position in MicroStrategy by 22.6% in the 4th quarter. WR Wealth Planners LLC now owns 260 shares of the software maker’s stock valued at $75,000 after acquiring an additional 48 shares during the period. Sterling Investment Advisors Ltd. raised its stake in MicroStrategy by 0.9% during the 4th quarter. Sterling Investment Advisors Ltd. now owns 5,380 shares of the software maker’s stock valued at $1,558,000 after acquiring an additional 50 shares in the last quarter. Finally, Masso Torrence Wealth Management Inc. grew its stake in shares of MicroStrategy by 1.8% in the fourth quarter. Masso Torrence Wealth Management Inc. now owns 3,055 shares of the software maker’s stock worth $885,000 after purchasing an additional 55 shares in the last quarter. Institutional investors own 59.84% of the company’s stock.

MicroStrategy Stock Performance

The company has a 50 day moving average price of $357.54 and a 200-day moving average price of $254.00. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 1.12. The company has a market cap of $79.57 billion, a P/E ratio of -157.86 and a beta of 3.25.

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.