MicroStrategy (NASDAQ:MSTR) Shares Up 5.2% – What’s Next?

On January 5th, 2025, the stock price of MicroStrategy Incorporated (NASDAQ:MSTR) increased by 5.2% during trading hours. The stock peaked at $317.13 and closed at $315.64. Approximately 5,355,650 shares were traded on that day, which was a significant decline of 52% from the average daily trading volume of 11,090,482 shares. The stock had previously closed at $300.01.

Analysts Set New Price Targets

Recent analysis from various equities research firms has led to new price targets for MicroStrategy. Sanford C. Bernstein has reiterated an "outperform" rating and set a price target of $600.00. In a report from BTIG Research, the price target for MicroStrategy was increased from $290.00 to $570.00 with a "buy" rating assigned. Maxim Group also raised their target from $193.00 to $270.00 and labeled the stock as a "buy." Barclays increased their price objective from $275.00 to $515.00 and labeled the stock as "overweight." Additionally, Benchmark has adjusted their price target from $450.00 to $650.00, while one analyst has assigned a sell rating and eight have given a buy rating to the stock. Currently, MicroStrategy has an average rating of "Moderate Buy" with an average price target of $479.25 according to MarketBeat data.

MicroStrategy Trading Up 13.2%

The stock's fifty-day moving average is currently at $343.44, while its 200-day moving average is at $220.29. MicroStrategy holds a market capitalization of $81.40 billion, a negative price-to-earnings (P/E) ratio of -161.20, and a beta of 3.25. The company's financial metrics include a debt-to-equity ratio of 1.12, a current ratio of 0.65, and a quick ratio of 0.65.

Quarterly Earnings Report

MicroStrategy recently released its earnings results on October 30th. The software company reported earnings per share (EPS) of ($1.56), which was below the analysts' consensus estimate of ($0.12). The company's return on equity was a negative 17.31%, and it also reported a negative net margin of 87.05%. The revenue for the quarter was $116.07 million, contrasted with analysts' expectations of $121.45 million. Compared to the same quarter last year, revenue decreased by 10.3%.

Insider Trading Activity

In recent insider trading news, CAO Jeanine Montgomery sold 56,250 shares of MicroStrategy on November 6, at an average price of $257.41, totaling approximately $14.48 million. Post-sale, she retains 5,670 shares, valued at around $1.46 million, showing a 90.84% reduction in her holdings. CEO Phong Le also sold 1,252 shares on November 14 at an average price of $322.45, resulting in a total transaction amount of $403,707.40. After this sale, he holds 13,918 shares valued at approximately $4.49 million, reflecting an 8.25% decrease in his ownership. Over the last ninety days, insiders have sold a total of 102,000 shares valued at $32.26 million, with insiders holding 13.18% of the company's stock.

Institutional Investors Weigh In On MicroStrategy

Recent activity from institutional investors shows a mix of increases and decreases in MicroStrategy stakes. For instance, National Bank of Canada FI increased its position by 746.2% in Q3, now owning 20,647 shares valued at $3.48 million after acquiring an additional 18,207 shares. B. Riley Wealth Advisors established a new position in MicroStrategy for $254,000. Notably, Wellington Management Group significantly boosted its position by 979.8% during the same quarter, now owning 6,727 shares worth $1.13 million. US Bancorp DE also saw an increase of 782.8%, while Virtu Financial LLC made a remarkable boost of 10,398.4%, owning 224,245 shares valued at $37.81 million. Overall, institutional investors hold approximately 59.84% of MicroStrategy's stock.

About MicroStrategy

MicroStrategy Incorporated specializes in providing enterprise analytics software and services, enhanced by artificial intelligence, throughout the United States and globally. The company offers innovative solutions such as MicroStrategy ONE, allowing non-technical users one-click access to valuable insights for informed decision-making. They also provide the MicroStrategy Cloud for Government, ensuring continuous threat monitoring tailored to stringent government and financial institution requirements.

MicroStrategy, Stocks, Earnings