The stock of MicroStrategy Incorporated (NASDAQ:MSTR) increased by $25.49 on Tuesday to at $369.86, up 7.40 percent. The last five days have seen an average of 456,640 shares of common stock traded. 30 times new highs were reached in the current year, with a gain of $230.77. The average number of shares traded over the last 20 days was 554,515, while the average volume over the last 50 days totaled 818,448.
MSTR stock dropped -15.54% since last month. On 08/18/23, the company’s shares reached a one-month low of $322.29. The stock touched a high of $475.09 on 07/14/23, after rallying from a low of $132.56 in 52 weeks. The price of MSTR stock has risen by 161.25% or $230.77 this year, reaching a new high 30 times. Still, the stock price is down -22.15% from the 52-week high.
Insider Transactions
MSTR stock investors should be aware that MicroStrategy Incorporated (MSTR) stock had its last reported insider trading activity 20 days ago on Aug 09. On Aug 09, Director Patten Jarrod M sold 450 shares at $379.55 each. This transaction resulted in the insider making $170,798. On Aug 08, Patten Jarrod M sold 450 shares at a price of US$391.05. After the transaction, the insider now owns 0 shares. Director Patten Jarrod M had earlier sold 1,000 shares on Aug 04 for $389.87 a share. The transaction was completed for $389,870.
Valuation Metrics
MicroStrategy Incorporated (MSTR) has a trailing price-to-earnings (P/E) ratio of 42.49. Beta for the stock is 2.48. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 10.43, the price-to-book (PB) ratio of 5.98.
Financial Health
For the three months ended June 29, MicroStrategy Incorporated’s quick ratio was 0.80, while its current ratio was 0.80, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 2.66, and the total debt to equity ratio is 2.66. As far as profitability goes, gross margin for the trailing twelve months is 78.60% percent. MicroStrategy Incorporated’s EBITDA margin for the year ended June 29 was 6.81%, whereas its operating margin stood at -38.00% for the same period. Based on annual data, it had gross profit of $396.27 million and revenue of $499.26 million.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. MSTR’s return on assets (ROA) during the last 12 months has been 7.30%. There was a -71.30% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 121.80%.
Earnings Surprise
According to MicroStrategy Incorporated’s quarterly financial report for the quarter that ended June 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $120.4 million, while revenues fell by -1.39% to $121.92 million. It was predicted that MicroStrategy Incorporated’s quarterly earnings would be $2.35, but it ended up being -$0.52, beating the consensus by 551.90%. EBITDA was -$21.29 million for the quarter. At the end of MicroStrategy Incorporated’s most recent quarter ended June 29, its liabilities totaled 2.54 billion, while its total debt was $2.24 billion. Equity owned by shareholders amounts to $14.09 million.
Technical Picture
Here’s a quick look at MicroStrategy Incorporated’s (MSTR) price momentum from a technical perspective. As of 28 August, the RSI 9-day stood at 56.08%, suggesting the stock is Neutral, with a 70.39% historical volatility rate.
The stochastic %K and %D were 39.80% and 28.57% respectively, while the average true range (ATR) was 20.00. Based on the 14-day stochastic reading of 71.09%, the RSI (14) reading is 51.36%. On the 9-day MACD Oscillator, the stock is at 9.15, and the 14-day reading is at -4.28.
Analyst Ratings
In its analyst report released on July 26, 2023, TD Cowen began covering MicroStrategy Incorporated (NASDAQ: MSTR). The stock was rated as an Outperform by the brokerage firm. Analysts have assigned MicroStrategy Incorporated (MSTR) an Overweight rating. MSTR is a stock that is recommended for selling by 1 brokerage firm, while 0 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 4 others recommend it as a buy.
What is MSTR’s price target for the next 12 months?
The current consensus forecast for the stock is between $210.00 and $520.00, with a median target price of $510.00. In analyzing these forecasts, the average price target given by analysts for MicroStrategy Incorporated (MSTR) is $448.60.
