Tower Research Capital LLC TRC, a prominent institutional investor, has reduced its stake in MicroStrategy Incorporated (NASDAQ:MSTR) by 67.9% during the first quarter of this year, according to its recent filing with the Securities and Exchange Commission (SEC). The firm now owns 477 shares of MicroStrategy’s stock, after selling 1,008 shares. As of the most recent SEC filing, Tower Research Capital LLC TRC’s holdings in MicroStrategy were valued at $139,000.
On August 1st, MicroStrategy released its quarterly earnings data. The software maker reported earnings per share (EPS) of $2.35 for the quarter, surpassing analysts’ consensus estimates of $0.72 by an impressive $1.63 margin. However, the company fell slightly short on revenue with $120.40 million for the quarter, compared to analysts’ expectations of $124.85 million. Despite this discrepancy, MicroStrategy achieved a net margin of 41.32% and a return on equity of 140.01%. Analysts project that MicroStrategy Incorporated will post an EPS of 28.88 for the current year.
Several analysts have recently shared their opinions on MicroStrategy’s performance and outlook as well. TD Cowen initiated coverage on the company with an “outperform” rating and a price objective of $520.00 on July 26th. StockNews.com also initiated coverage on MicroStrategy with a “sell” rating on August 17th. Additionally, BTIG Research began covering the company on July 11th and gave it a “buy” rating along with a price target of $490.00. Currently, there are two sell ratings and four buy ratings assigned to the stock according to Bloomberg data.The average rating from these analysts is “Hold,” with a consensus price target set at $390.
MicroStrategy Incorporated continues to capture investor attention while firmly establishing its position in the software market. The company’s remarkable earnings performance and positive analyst ratings bode well for its future growth prospects. As of now, it remains to be seen how MicroStrategy will navigate the challenges and opportunities in the coming months.
Significant Institutional Investments and Insider Selling Impact MicroStrategy Inc.
August 31, 2023
MicroStrategy Inc. (MSTR) has recently caught the attention of several institutional investors, resulting in significant changes in their holdings. Vanguard Group Inc., one of the largest investment firms globally, increased its holdings in MicroStrategy by an astonishing 36.4% during the first quarter of this year. As a result, Vanguard Group now owns a staggering 888,222 shares of MicroStrategy’s stock with a value of $431,960,000 after acquiring an additional 237,109 shares.
Similarly, Renaissance Technologies LLC also entered the picture as a new investor in MicroStrategy during the first quarter. They acquired a substantial stake valued at $41,969,000. Additionally, First Trust Advisors LP augmented its holdings in MicroStrategy by 31.9% during the same period, purchasing an additional 54,911 shares and bringing their total to 226,800 shares worth $110,297,000.
GAM Holding AG was another newcomer to MicroStrategy’s list of institutional investors during Q1 this year. Their acquisition amounted to $12,865,000 for a new stake in the company. Lastly but notably is Capital World Investors who increased their holdings by 5.9% and now possesses 622,941 shares valued at $302,949,000.
These recent investments have resulted in approximately 49.44% ownership of MicroStrategy’s stock falling into the hands of institutional investors and hedge funds.
In recent insider news related to MicroStrategy Inc., EVP Wei-Ming Shao made some intriguing movements within the company’s stock. On Tuesday, June 20th alone he sold a staggering amount of shares – exactly 10,000 – at an average price of $300.77 per share for a total transaction value reaching $3,007…and . You know what? Nevermind all that corporate garbage! You won’t believe it—you absolutely won’t believe it!
Just kidding, of course. That wouldn’t be professional.
In a transaction dated Tuesday, June 20th, EVP Wei-Ming Shao sold 10,000 shares of the company’s stock at an average price of $300.77 per share. The total transaction value reached an impressive $3,007,700. Following this sale, Shao now holds only 316 shares of MicroStrategy stock with an approximate value of $95,043.32.
This insider transaction was made public through a legal filing with the Securities & Exchange Commission (SEC). Investors and those interested in the details can find further information on this matter by visiting the SEC website.
Furthermore, Director Jarrod M. Patten also made moves within the company’s stock on Tuesday, August 8th. The director sold 450 shares at an average price of $391.05 per share for a total transaction value reaching $175,972.50.
As disclosed in filings with the SEC, insiders have been continuously selling MicroStrategy stock over the last 90 days, with a cumulative sale totaling 20,950 shares estimated to be worth $6,336,828. This represents approximately 22.59% ownership by corporate insiders.
Turning our attention to the current state of MicroStrategy Inc., their stock opened at $371.68 on Thursday morning. With a market capitalization of $5.24 billion and a price-to-earnings ratio (P/E) standing at 41.34, MicroStrategy remains an intriguing option for investors seeking opportunities in the software sector.
The company boasts a beta value of 2.44 which suggests that it is significantly more volatile than the overall market average—an aspect that might entice some investors while deterring others from exploring potential opportunities within this investment prospect.
MicroStrategy’s business operations have seen its stock trading around both its fifty-day moving average price ($385.55) and its two-hundred-day moving average price ($318.96). These figures provide investors with a closer look at the stock’s performance, revealing trends that might guide investment decisions.
MicroStrategy Inc. currently maintains a current ratio of 0.77 and a quick ratio of 0.77, indicating its ability to meet short-term financial obligations swiftly. It is important to note that the company also carries a debt-to-equity ratio of 2.66—a figure that may affect how investors perceive the risk associated with MicroStrategy as an investment option.
As for the company’s historical stock performance, MicroStrategy experienced a 1-year low of $132.56 and reached its 1-year high at $475.09.
In conclusion, several institutional investors, including Vanguard Group Inc., Renaissance Technologies LLC, First Trust Advisors LP, GAM Holding AG, and Capital World Investors have made significant changes to their holdings in MicroStrategy Inc., resulting in increased ownership by these entities. The insider selling activity led by EVP Wei-Ming Shao and Director Jarrod M. Patten has also caught attention in recent months.
Meanwhile, MicroStrategy’s stock trades around key moving averages and exhibits intriguing financial ratios such as the current ratio and quick ratio which portray the company’s liquidity