Buying MicroStrategy Incorporated (MSTR) Stock Is A Smart Move Today?

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MicroStrategy Incorporated (NASDAQ:MSTR) finished Friday with an addition of $4.94 to close at $141.57, an upside of 3.62 percent. An average of 621,900 shares of common stock have been traded in the last five days. There was a fall of -$24.66 in the past week, and it reached a new high 2 times over the past 12 months. The last 20 days have seen an average of 487,195 shares traded, while the 50-day average volume stands at 655,630.

MSTR stock has decreased by -28.53% in the last month. The company shares reached their 1-month lowest point of $132.56 on 12/30/22. With the stock rallying to its 52-week high on 01/04/22, shares of the company touched a low of $133.77 and a high of $576.26 in 52 weeks. It has reached a new high 2 times so far this year and lost -74.00% or -$402.92 in price. In spite of this, the price is down -75.43% from the 52-week high.


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Valuation Metrics

MicroStrategy Incorporated (MSTR) stock’s beta is 2.15. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.70, and the price-to-cash flow ratio at 61.52.

Financial Health

The quick ratio of MicroStrategy Incorporated for the three months ended September 29 was 0.80, and the current ratio was 0.80, indicating that the company is not able to meet its debt obligations. Its gross profit as reported stood at $418.85 million compared to revenue of $510.76 million.

Earnings Surprise

For the three-month period that ended September 29, MicroStrategy Incorporated had $2.38 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$27.08 million in the quarter, while revenues were shrunk -33.46%. The analyst consensus anticipated MicroStrategy Incorporated’s latest quarter earnings to come in at $0.27 per share, but it turned out to be -$2.39, a -985.20% surprise. For the quarter, EBITDA amounted to $10.4 million. Shareholders own equity worth $11.32 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at MicroStrategy Incorporated (MSTR) price momentum. RSI 9-day as of the close on 30 December was 24.56%, suggesting the stock is oversold, with historical volatility in this time frame at 54.23%.

As of today, MSTR’s price is $145.34 -14.83% or -$24.66 from its 5-day moving average. MSTR is currently trading -28.85% lower than its 20-day SMA and -55.67% lower than its 100-day SMA. However, the stock’s current price level is -37.38% below the SMA50 and -66.98% below the SMA200.

The stochastic %K and %D were 4.97% and 3.22%, respectively, and the average true range (ATR) was 11.44. With the 14-day stochastic at 11.09% and the average true range at 12.65, the RSI (14) stands at 30.38%. The stock has reached -16.88 on the 9-day MACD Oscillator while the 14-day reading was at -30.04.

Analyst Ratings

Jefferies downgraded MicroStrategy Incorporated (NASDAQ: MSTR) to a an Underperform rating in its most recent analyst report. Previously, the stock was rated as a Hold. The consensus rating for MicroStrategy Incorporated (MSTR) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell MSTR, while 0 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 3 others rate it as a “buy”.

What is MSTR’s price target for the next 12 months?

Analysts predict a range of price targets between $110.00 and $950.00, with a median target of $372.00. Taking a look at these predictions, the average price target given by analysts for MicroStrategy Incorporated (MSTR) stock is $477.33.

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