MicroStrategy Incorporated [NASDAQ: MSTR] closed the trading session at $299.12 on 12/16/20. The day’s price range saw the stock hit a low of $298.00, while the highest price level was $315.00. The company report on December 11, 2020 that MicroStrategy Completes $650 Million Offering of 0.750% Convertible Senior Notes Due 2025.
MicroStrategy® Incorporated (Nasdaq: MSTR) (“MicroStrategy”) announced the closing of its previously announced offering of 0.750% convertible senior notes due 2025 (the “notes”). The aggregate principal amount of the notes sold in the offering was $650 million, which includes notes issuable pursuant to an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $100 million aggregate principal amount of the notes granted to the initial purchaser of the notes, which the initial purchaser exercised in full on December 9, 2020 and which additional purchase was also completed. The notes were sold in a private offering to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).
The notes are unsecured, senior obligations of MicroStrategy, and bear interest at a rate of 0.750% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on June 15, 2021. The notes will mature on December 15, 2025, unless earlier repurchased, redeemed or converted in accordance with their terms. Subject to certain conditions, on or after December 20, 2023, MicroStrategy may redeem for cash all or a portion of the notes at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, if the last reported sale price of MicroStrategy’s class A common stock has been at least 130% of the conversion price then in effect for a specified period of time ending on the trading day immediately before the date the notice of redemption is sent.
The stocks have a year to date performance of 109.72 percent and weekly performance of 4.51 percent. The stock has been moved at 150.39 percent over the last six months. The stock has performed 46.68 percent around the most recent 30 days and changed 82.83 percent over the most recent 3-months.
If compared to the average trading volume of 300.71K shares, MSTR reached to a volume of 1105912 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about MicroStrategy Incorporated [MSTR]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for MSTR shares is $250.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on MSTR stock is a recommendation set at 5.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Citigroup have made an estimate for MicroStrategy Incorporated shares, keeping their opinion on the stock as Sell, with their previous recommendation back on December 08, 2020. While these analysts kept the previous recommendation, BWS Financial raised their target price to Buy. The new note on the price target was released on February 11, 2019, representing the official price target for MicroStrategy Incorporated stock. Previously, the target price had yet another drop from $220 to $200, while Mizuho kept a Buy rating on MSTR stock. On July 28, 2017, analysts decreased their price target for MSTR shares from 220 to 180.
The Average True Range (ATR) for MicroStrategy Incorporated is set at 20.48, with the Price to Sales ratio for MSTR stock in the period of the last 12 months amounting to 5.83. The Price to Book ratio for the last quarter was 7.39, with the Price to Cash per share for the same quarter was set at 5.60. Price to Free Cash Flow for MSTR in the course of the last twelve months was 80.88 with Quick ratio for the last quarter at 0.90.
MSTR stock trade performance evaluation
MicroStrategy Incorporated [MSTR] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.51. With this latest performance, MSTR shares gained by 46.68% in over the last four-week period, additionally plugging by 150.39% over the last 6 months – not to mention a rise of 103.00% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for MSTR stock in for the last two-week period is set at 62.21, with the RSI for the last a single of trading hit 59.24, and the three-weeks RSI is set at 64.02 for MicroStrategy Incorporated [MSTR]. The present Moving Average for the last 50 days of trading for this stock 218.55, while it was recorded at 288.14 for the last single week of trading, and 149.96 for the last 200 days.
MicroStrategy Incorporated [MSTR]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and MicroStrategy Incorporated [MSTR] shares currently have an operating margin of -0.21 and a Gross Margin at +78.85. MicroStrategy Incorporated’s Net Margin is presently recorded at +7.06.
Return on Total Capital for MSTR is now -0.17, given the latest momentum, and Return on Invested Capital for the company is 6.02. Return on Equity for this stock inclined to 6.62, with Return on Assets sitting at 3.88. When it comes to the capital structure of this company, MicroStrategy Incorporated [MSTR] has a Total Debt to Total Equity ratio set at 22.22. Additionally, MSTR Total Debt to Total Capital is recorded at 18.18, with Total Debt to Total Assets ending up at 12.33. Long-Term Debt to Equity for the company is recorded at 20.34, with the Long-Term Debt to Total Capital now at 16.64.
Reflecting on the efficiency of the workforce at the company, MicroStrategy Incorporated [MSTR] managed to generate an average of $14,338 per employee. Receivables Turnover for the company is 2.89 with a Total Asset Turnover recorded at a value of 0.55.MicroStrategy Incorporated’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 0.90.
Earnings per share (EPS) analysis for MicroStrategy Incorporated [MSTR] stock
With the latest financial reports released by the company, MicroStrategy Incorporated posted 1.18/share EPS, while the average EPS was predicted by analysts to be reported at 0.81/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 45.70%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for MSTR. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for MicroStrategy Incorporated go to 10.00%.
MicroStrategy Incorporated [MSTR]: Insider Ownership positions
There are presently around $2,030 million, or 96.70% of MSTR stock, in the hands of institutional investors. The top three institutional holders of MSTR stocks are: BLACKROCK INC. with ownership of 1,201,654, which is approximately -4.374% of the company’s market cap and around 0.10% of the total institutional ownership; VANGUARD GROUP INC, holding 782,089 shares of the stock with an approximate value of $233.94 million in MSTR stocks shares; and FIRST TRUST ADVISORS LP, currently with $227.94 million in MSTR stock with ownership of nearly 4.824% of the company’s market capitalization.
Positions in MicroStrategy Incorporated stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 78 institutional holders increased their position in MicroStrategy Incorporated [NASDAQ:MSTR] by around 619,185 shares. Additionally, 107 investors decreased positions by around 1,108,025 shares, while 21 investors held positions by with 5,060,434 shares. The mentioned changes placed institutional holdings at 6,787,644 shares, according to the latest SEC report filing. MSTR stock had 19 new institutional investments in for a total of 55,282 shares, while 31 institutional investors sold positions of 254,807 shares during the same period.