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Peeling Back The Layers: Exploring MicroStrategy Through Analyst Insights
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Peeling Back The Layers: Exploring MicroStrategy Through Analyst Insights
Oct 17, 2024 2:53 PM

MicroStrategy ( MSTR ) underwent analysis by 9 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 4 5 0 0 0
Last 30D 0 1 0 0 0
1M Ago 2 2 0 0 0
2M Ago 0 2 0 0 0
3M Ago 2 0 0 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $609.0, along with a high estimate of $2150.00 and a low estimate of $146.00. A decline of 41.59% from the prior average price target is evident in the current average.

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of MicroStrategy ( MSTR ) among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Ramsey El-Assal Barclays Raises Overweight $225.00 $173.00
Gautam Chhugani Bernstein Adjusts Outperform $290.00 $2890.00
Ramsey El-Assal Barclays Raises Overweight $173.00 $146.00
Lance Vitanza TD Cowen Raises Buy $200.00 $195.00
Joseph Vafi Canaccord Genuity Lowers Buy $173.00 $185.00
Ramsey El-Assal Barclays Announces Overweight $146.00 -
Brett Knoblauch Cantor Fitzgerald Announces Overweight $194.00 -
Matthew Galinko Maxim Group Raises Buy $1930.00 $1835.00
Mark Palmer Benchmark Raises Buy $2150.00 $1875.00

Key Insights:

Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to MicroStrategy ( MSTR ). This offers insight into analysts' perspectives on the current state of the company.

Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of MicroStrategy ( MSTR ) compared to the broader market.

Price Targets: Analysts provide insights into price targets, offering estimates for the future value of MicroStrategy's ( MSTR ) stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into MicroStrategy's ( MSTR ) market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on MicroStrategy ( MSTR ) analyst ratings.

Unveiling the Story Behind MicroStrategy

MicroStrategy Inc ( MSTR ) is a provider of enterprise analytics and mobility software. It offers MicroStrategy Analytics platform that delivers reports and dashboards and enables users to conduct ad hoc analysis and share insights through mobile devices or the Web; MicroStrategy Server, which provides analytical processing and job management. The company's reportable operating segment is engaged in the design, development, marketing, and sales of its software platform through licensing arrangements and cloud-based subscriptions and related services.

MicroStrategy: Delving into Financials

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: MicroStrategy's ( MSTR ) revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -7.44%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: MicroStrategy's ( MSTR ) net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -92.03%, the company may face hurdles in effective cost management.

Return on Equity (ROE): MicroStrategy's ( MSTR ) ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -3.92%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): MicroStrategy's ( MSTR ) ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -1.53%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.38, caution is advised due to increased financial risk.

The Significance of Analyst Ratings Explained

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.

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