Microstrategy Inc. [NASDAQ: MSTR] stock went on an upward path that rose over 10.85% on Wednesday, amounting to a one-week price increase of more than 41.72%. The company report on March 13, 2024 at 4:20 PM that MicroStrategy Announces Proposed Private Offering of $500 Million of Convertible Senior Notes.
MicroStrategy® Incorporated (Nasdaq: MSTR) (“MicroStrategy”) today announced that it intends to offer, subject to market conditions and other factors, $500 million aggregate principal amount of convertible senior notes due 2031 (the “notes”) in a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). MicroStrategy also expects to grant to the initial purchasers of the notes 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 $75 million aggregate principal amount of the notes. The offering is subject to market and other conditions, and there can be no assurance as to whether, when or on what terms the offering may be completed.
The notes will be unsecured, senior obligations of MicroStrategy and will bear interest payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2024. The notes will mature on March 15, 2031, unless earlier repurchased, redeemed or converted in accordance with their terms. Subject to certain conditions, on or after March 22, 2028, MicroStrategy may redeem for cash all or any portion of the notes. If MicroStrategy redeems fewer than all the outstanding notes, at least $75 million aggregate principal amount of notes must be outstanding and not subject to redemption as of the relevant redemption notice date. Holders of the notes will have the right to require MicroStrategy to repurchase for cash all or any portion of their notes on September 15, 2028. The notes will be convertible into cash, shares of MicroStrategy’s class A common stock, or a combination of cash and shares of MicroStrategy’s class A common stock, at MicroStrategy’s election. Prior to September 15, 2030, the notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day immediately preceding the maturity date. The interest rate, initial conversion rate, and other terms of the notes will be determined at the time of pricing of the offering. MicroStrategy expects that the reference price used to calculate the initial conversion price for the notes will be the U.S. composite volume weighted average price of MicroStrategy’s class A common stock from 9:30 AM through 4:00 PM EDT on the date of pricing.
Over the last 12 months, MSTR stock rose by 691.43%. The one-year Microstrategy Inc. stock forecast points to a potential downside of -68.47. The average equity rating for MSTR stock is currently 1.67, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $29.97 billion, with 16.97 million shares outstanding and 14.99 million shares in the current float. Compared to the average trading volume of 1.82M shares, MSTR stock reached a trading volume of 3701569 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Microstrategy Inc. [MSTR]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for MSTR shares is $1048.33 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 1.67. 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.
The Benchmark Company have made an estimate for Microstrategy Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on February 27, 2024. While these analysts kept the previous recommendation, BTIG Research raised their target price from $560 to $690. The new note on the price target was released on December 11, 2023, representing the official price target for Microstrategy Inc. stock. Previously, the target price had yet another raise to $520, while TD Cowen analysts kept a Outperform rating on MSTR stock.
The Average True Range (ATR) for Microstrategy Inc. is set at 125.31, with the Price to Sales ratio for MSTR stock in the period of the last 12 months amounting to 60.39. The Price to Book ratio for the last quarter was 13.76, with the Price to Cash per share for the same quarter was set at 2.87. Price to Free Cash Flow for MSTR in the course of the last twelve months was 3067.71 with Quick ratio for the last quarter at 0.83.
MSTR Stock Performance Analysis:
Microstrategy Inc. [MSTR] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 41.72. With this latest performance, MSTR shares gained by 146.15% in over the last four-week period, additionally plugging by 407.86% over the last 6 months – not to mention a rise of 691.43% 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 80.70, with the RSI for the last a single of trading hit 83.06, and the three-weeks RSI is set at 78.84 for Microstrategy Inc. [MSTR]. The present Moving Average for the last 50 days of trading for this stock 744.21, while it was recorded at 1,513.87 for the last single week of trading, and 490.39 for the last 200 days.
Insight into Microstrategy Inc. Fundamentals:
Microstrategy Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.83 and a Current Ratio set at 0.83.
MSTR Stock EPS
With the latest financial reports released by the company, Microstrategy Inc. posted 30.59/share EPS, while the average EPS was predicted by analysts to be reported at -1.28/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 2,489.80%. 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 Inc. go to 10.00%.
Microstrategy Inc. [MSTR] Institutonal Ownership Details
The top three institutional holders of MSTR stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in MSTR stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in MSTR stock with ownership which is approximately 5.8325%.
