MicroStrategy Receives “Buy” Rating from Analysts, CEO Sells Shares

MicroStrategy Incorporated, a leading provider of artificial intelligence-powered enterprise analytics software and services, has received an average “Buy” rating from eight ratings firms, according to a report by MarketBeat. Out of the eight analysts covering the company, seven have recommended buying the stock, while one has given it a strong buy recommendation. The average 12-month price objective among these analysts is $202.13.

Several brokerages have issued reports on MicroStrategy. Sanford C. Bernstein upgraded the company to a “strong-buy” rating, while Benchmark raised its price objective from $187.50 to $215.00 and maintained a “buy” rating. TD Cowen also increased its target price from $195.00 to $200.00, while Canaccord Genuity Group lowered its price target from $185.00 to $173.00 but maintained a “buy” rating. Cantor Fitzgerald initiated coverage on MicroStrategy, giving it an “overweight” rating and a $194.00 price objective.

MicroStrategy recently reported its earnings results for the quarter ending August 1st. The software maker posted a loss of ($0.57) per share, missing the consensus estimate of ($0.09) by a significant margin. The company’s negative return on equity and net margin were also a cause for concern. MicroStrategy’s revenue for the quarter stood at $111.44 million, falling short of analysts’ expectations of $121.99 million. Year-over-year, the company’s revenue declined by 7.4%.

In terms of insider trading, CEO Phong Le sold 50,000 shares of MicroStrategy stock on August 22nd, with an average price of $138.28 per share. This transaction amounted to a total value of $6,914,000.00. Following the sale, Le now holds 12,670 shares in the company, valued at approximately $1,752,007.60. Additionally, EVP Wei-Ming Shao sold 3,000 shares at an average price of $141.20, totaling $423,600.00. In the last quarter, insiders sold a total of 101,838 shares, representing 13.18% of the company’s stock.

Institutional investors and hedge funds have also shown interest in MicroStrategy. Newbridge Financial Services Group Inc. increased its holdings by 10.9% during the second quarter, while Sanctuary Advisors LLC purchased a new position. Gordian Capital Singapore Pte Ltd and Strategic Investment Solutions Inc. IL also added to their stakes, while SRN Advisors LLC grew its holdings by 16.1%.

MicroStrategy Incorporated provides AI-powered enterprise analytics software and services globally. The company’s offerings include MicroStrategy ONE, which enables non-technical users to access actionable insights, and MicroStrategy Cloud for Government, a service designed to meet the stringent technical and regulatory requirements of governments and financial institutions.