Michael Saylor, Executive Chairman and 10% Owner of MicroStrategy Inc (MSTR, Financial), sold 5,000 shares of the company on January 4, 2024, according to a recent SEC Filing. MicroStrategy Inc is a provider of enterprise analytics and mobility software and services. The company's offerings include MicroStrategy Analytics, MicroStrategy Mobile, and Usher. MicroStrategy Analytics allows organizations to analyze vast amounts of data and distribute actionable business insight throughout an enterprise. MicroStrategy Mobile lets organizations rapidly build rich applications that deliver analytics combined with transactions, multimedia, and custom workflows to mobile devices. Usher is a digital credential and identity intelligence product.
Over the past year, the insider has sold a total of 5,000 shares and has not made any purchases. The recent transaction is part of a series of sales by the insider, contributing to the total of 16 insider sells over the past year, with no insider buys reported in the same period.
On the date of the sale, shares of MicroStrategy Inc were trading at $652.46, resulting in a market capitalization of $10.547 billion. The stock's price-earnings ratio stands at 489.21, which is significantly above the industry median of 27.17 and also exceeds the company's historical median price-earnings ratio.
The stock's valuation, when compared to the GuruFocus Value (GF Value) of $290.46, indicates a price-to-GF-Value ratio of 2.25. This suggests that MicroStrategy Inc is significantly overvalued according to the GF Value metric.
The GF Value is calculated considering historical trading multiples such as price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, along with a GuruFocus adjustment factor based on the company's past returns and growth, and future business performance estimates provided by Morningstar analysts.
Investors and analysts often monitor insider transactions as they can provide insights into a company's internal perspective on the stock's value. The consistent selling by the insider may draw attention from the market, particularly when the stock is deemed significantly overvalued based on the GF Value.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
