Wall Street analysts’ outlook for MicroStrategy Incorporated (MSTR)

MicroStrategy Incorporated (NASDAQ: MSTR) stock jumped 8.39% on Friday to $240.03 against a previous-day closing price of $221.45. With 0.72 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.68 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $241.87 whereas the lowest price it dropped to was $219.21. The 52-week range on MSTR shows that it touched its highest point at $522.80 and its lowest point at $132.56 during that stretch. It currently has a 1-year price target of $477.33. Beta for the stock currently stands at 2.27.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MSTR was up-trending over the past week, with a rise of 14.21%, but this was up by 41.02% over a month. Three-month performance surged to 6.17% while six-month performance fell -17.15%. The stock lost -47.87% in the past year, while it has gained 69.55% so far this year. A look at the trailing 12-month EPS for MSTR yields -116.41 with Next year EPS estimates of -0.86. For the next quarter, that number is -0.13. This implies an EPS growth rate of -459.30% for this year and 99.20% for next year. EPS is expected to grow by 10.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -54.40%.

Float and Shares Shorts:

At present, 11.31 million MSTR shares are outstanding with a float of 7.38 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.21 million, which was 28.39% higher than short shares on Sep 14, 2022. In addition to Mr. Michael J. Saylor as the firm’s Exec. Chairman, Mr. Phong Q. Le serves as its Pres, CEO & Director.


Institutional Ownership:

Through their ownership of 75.26% of MSTR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 43.09% of MSTR, in contrast to 35.21% held by mutual funds. Shares owned by individuals account for 1.20%. As the largest shareholder in MSTR with 14.81% of the stake, Capital Research & Management Co holds 1,384,999 shares worth 1,384,999. A second-largest stockholder of MSTR, Group One Trading LP, holds 1,261,744 shares, controlling over 13.49% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in MSTR, holding 877,093 shares or 9.38% stake. With a 8.59% stake in MSTR, the American Funds Growth Fund of Ame is the largest stakeholder. A total of 803,352 shares are owned by the mutual fund manager. The American Funds Fundamental Invest, which owns about 5.45% of MSTR stock, is the second-largest Mutual Fund holder. It holds 510,069 shares valued at 72.21 million. Vanguard Total Stock Market Index holds 3.05% of the stake in MSTR, owning 285,067 shares worth 40.36 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MSTR since 3 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MSTR analysts setting a high price target of $372.00 and a low target of $110.00, the average target price over the next 12 months is $241.00. Based on these targets, MSTR could surge 54.98% to reach the target high and fall by -54.17% to reach the target low. Reaching the average price target will result in a growth of 0.4% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MSTR will report FY 2022 earnings on 01/30/2024. Analysts have provided yearly estimates in a range of -$107.71 being high and -$107.71 being low. For MSTR, this leads to a yearly average estimate of -$107.71. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. MicroStrategy Incorporated surprised analysts by -$2.24 when it reported -$2.39 EPS against a consensus estimate of -$0.15. The surprise factor in the prior quarter was -$93.75. Based on analyst estimates, the high estimate for the next quarter is $0.02 and the low estimate is $0.02. The average estimate for the next quarter is thus $0.02.

Summary of Insider Activity:

Insiders traded MSTR stock several times over the past three months with 7 Buys and 7 Sells. In these transactions, 1,120 shares were bought while 377 shares were sold. The number of buy transactions has increased to 11 while that of sell transactions has risen to 7 over the past year. The total number of shares bought during that period was 9,620 while 377 shares were sold.

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