MicroStrategy Incorporated [MSTR] is 32.03% higher this YTD. Is it still time to buy?

MicroStrategy Incorporated [NASDAQ: MSTR] gained 11.67% on the last trading session, reaching $512.99 price per share at the time. The company report on June 9, 2021 that MicroStrategy Announces Pricing of Private Offering of Senior Secured Notes.

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MicroStrategy® Incorporated (Nasdaq: MSTR) (“MicroStrategy”) announced the pricing of its offering of $500 million aggregate principal amount of senior secured notes due 2028 (the “notes”), which will bear interest at an annual rate of 6.125%. The notes will be 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”) and to persons outside of the United States in compliance with Regulation S under the Securities Act. The offering is expected to close on June 14, 2021, subject to satisfaction of customary closing conditions.

The notes will be fully and unconditionally guaranteed on a senior secured basis, jointly and severally, by MicroStrategy Services Corporation, a wholly owned subsidiary of MicroStrategy, and certain subsidiaries of MicroStrategy that may be formed or acquired after the closing of the offering. The notes and the related guarantees will be secured, on a senior secured basis with MicroStrategy’s existing and future senior indebtedness, by security interests on substantially all of MicroStrategy’s and the guarantors’ assets, including any bitcoins or other digital assets acquired on or after the closing of the offering, but excluding MicroStrategy’s existing bitcoins as well as bitcoins and digital assets acquired with the proceeds from existing bitcoins. MicroStrategy’s existing approximately 92,079 bitcoins will be held by a newly formed subsidiary, MacroStrategy LLC.

MicroStrategy Incorporated represents 9.65 million in outstanding shares, while the company has a total market value of $5.04 billion with the latest information. MSTR stock price has been found in the range of $455.5901 to $515.67.

If compared to the average trading volume of 623.72K shares, MSTR reached a trading volume of 1475937 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying 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 $690.00 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 2.20. 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.

William Blair have made an estimate for MicroStrategy Incorporated shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on May 04, 2021. While these analysts kept the previous recommendation, Canaccord Genuity raised their target price to Buy. The new note on the price target was released on April 09, 2021, representing the official price target for MicroStrategy Incorporated stock. Previously, the target price had yet another raise to $700, while Jefferies analysts kept a Hold rating on MSTR stock.

The Average True Range (ATR) for MicroStrategy Incorporated is set at 34.79, with the Price to Sales ratio for MSTR stock in the period of the last 12 months amounting to 10.25. The Price to Book ratio for the last quarter was 13.56. Price to Free Cash Flow for MSTR in the course of the last twelve months was 60.10 with Quick ratio for the last quarter at 0.90.

Trading performance analysis for MSTR stock

MicroStrategy Incorporated [MSTR] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.91. With this latest performance, MSTR shares dropped by -9.92% in over the last four-week period, additionally plugging by 52.58% over the last 6 months – not to mention a rise of 308.17% 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 48.56, with the RSI for the last a single of trading hit 54.97, and the three-weeks RSI is set at 46.19 for MicroStrategy Incorporated [MSTR]. The present Moving Average for the last 50 days of trading for this stock 593.35, while it was recorded at 483.10 for the last single week of trading, and 451.94 for the last 200 days.

MicroStrategy Incorporated [MSTR]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and MicroStrategy Incorporated [MSTR] shares currently have an operating margin of +11.87 and a Gross Margin at +80.41. MicroStrategy Incorporated’s Net Margin is presently recorded at -1.57.

Return on Total Capital for MSTR is now 6.50, given the latest momentum, and Return on Invested Capital for the company is -0.87. Return on Equity for this stock declined to -1.42, with Return on Assets sitting at -0.63. When it comes to the capital structure of this company, MicroStrategy Incorporated [MSTR] has a Total Debt to Total Equity ratio set at 105.15. Additionally, MSTR Total Debt to Total Capital is recorded at 51.25, with Total Debt to Total Assets ending up at 39.68. Long-Term Debt to Equity for the company is recorded at 103.19, with the Long-Term Debt to Total Capital now at 50.30.

Reflecting on the efficiency of the workforce at the company, MicroStrategy Incorporated [MSTR] managed to generate an average of -$3,768 per employee. Receivables Turnover for the company is 2.65 with a Total Asset Turnover recorded at a value of 0.40.MicroStrategy Incorporated’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 0.90.

MicroStrategy Incorporated [MSTR]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, MicroStrategy Incorporated posted 0.35/share EPS, while the average EPS was predicted by analysts to be reported at 0.4/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -12.50%. 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%.

An analysis of insider ownership at MicroStrategy Incorporated [MSTR]

There are presently around $2,883 million, or 75.40% of MSTR stock, in the hands of institutional investors. The top three institutional holders of MSTR stocks are: BLACKROCK INC. with ownership of 1,244,167, which is approximately 5.253% of the company’s market cap and around 0.03% of the total institutional ownership; VANGUARD GROUP INC, holding 686,836 shares of the stock with an approximate value of $352.34 million in MSTR stocks shares; and MORGAN STANLEY, currently with $211.94 million in MSTR stock with ownership of nearly -51.153% of the company’s market capitalization.

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Positions in MicroStrategy Incorporated stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 166 institutional holders increased their position in MicroStrategy Incorporated [NASDAQ:MSTR] by around 934,530 shares. Additionally, 141 investors decreased positions by around 1,802,655 shares, while 14 investors held positions by with 2,882,431 shares. The mentioned changes placed institutional holdings at 5,619,616 shares, according to the latest SEC report filing. MSTR stock had 91 new institutional investments in for a total of 395,874 shares, while 44 institutional investors sold positions of 589,943 shares during the same period.

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