MicroStrategy (NASDAQ:MSTR) Trading 9.9% Higher - Here's What Happened

MicroStrategy Incorporated (NASDAQ:MSTR - Get Free Report) saw a significant increase in its share price, rising by 9.9% during trading on a Thursday. The stock reached a peak of $397.66 and was last seen at $388.84. In total, around 34,768,508 shares changed hands, marking an 88% increase compared to the average daily volume of 18,456,727 shares. The previous closing price was $353.69.

Analyst Upgrades and Downgrades

MicroStrategy's stock (MSTR) has been under the spotlight with various analysts reviewing its potential. Maxim Group raised its price target from $193.00 to $270.00, issuing a "buy" rating in a note dated October 31. Similarly, TD Cowen increased the price objective for MicroStrategy shares from $392.00 to $525.00 with an affirmative "buy" rating. BTIG Research also uplifted its target on MicroStrategy from $290.00 to $570.00 with a buy recommendation on November 21. Cantor Fitzgerald began coverage with an "overweight" rating and a $194.00 price target. Benchmark further raised its price target from $450.00 to $650.00 while giving it a buy rating. In total, one analyst gave the stock a sell rating, while eight others recommended it as a buy. MarketBeat.com data indicates a consensus rating of "Moderate Buy" for the company, with an average target price set at $479.25.

MicroStrategy Price Performance

The company has some notable financial metrics, including a quick ratio of 0.65 and a current ratio of 0.65, alongside a debt-to-equity ratio of 1.12. Currently, MicroStrategy’s stock has a market capitalization of $78.79 billion, with a price-to-earnings ratio of -184.55 and a beta of 3.05. In its latest earnings announcement on October 30, MicroStrategy reported an earnings per share (EPS) of ($1.56), missing analysts' expectations of ($0.12) by a wide margin. The revenue for the quarter stood at $116.07 million, falling short of analyst estimates of $121.45 million. This represented a 10.3% drop in revenue compared to the same quarter a year prior, when the company reported an EPS of ($8.98).

Insider Transactions at MicroStrategy

Recent insider transactions reveal some activity among key executives. On November 6, CFO Andrew Kang sold 5,700 shares at an average price of $257.15, totaling $1,465,755. Post-sale, he holds 12,080 shares valued approximately at $3,106,372, indicating a 32.06% reduction in his ownership. Additionally, CAO Jeanine Montgomery sold 56,250 shares on the same date at an average price of $257.41, resulting in a total of $14,479,312.50, which was a 90.84% drop in her ownership. During the last quarter, insiders offloaded 102,000 shares valued at $32,259,177, with insiders owning 13.18% of MicroStrategy’s stock.

Institutional Investors Weigh In On MicroStrategy

Institutional investors have also adjusted their stakes in MicroStrategy recently. Thurston Springer Miller Herd & Titak Inc. established a new position valued at about $37,000. GAMMA Investing LLC increased its holdings by 36.4%, now owning 30 shares worth $41,000 after a recent purchase. Signaturefd LLC expanded its stake by 13.6% during the second quarter, owning 50 shares valued at $69,000. Strategic Investment Solutions Inc. IL acquired a new stake in MicroStrategy valued at approximately $106,000. Larson Financial Group LLC significantly increased its stake by 72.3%, now holding 81 shares valued at $112,000. Currently, institutional investors and hedge funds own 72.03% of MicroStrategy's stock.

About MicroStrategy

MicroStrategy Incorporated specializes in providing enterprise analytics software and artificial intelligence-powered services across various global markets, including the United States, Europe, and the Middle East. Their flagship product, MicroStrategy ONE, allows non-technical users to easily access actionable insights to aid in decision-making. Additionally, the company offers the MicroStrategy Cloud for Government service, designed to meet the technical and regulatory requirements demanded by governmental and financial institutions.

Trading, Stock, Analyst