On January 26, 2024, Michael Saylor, the Executive Chairman and 10% Owner of MicroStrategy Inc (NASDAQ:MSTR), sold 5,000 shares of the company. The transaction was reported in a recent SEC Filing, indicating a continuation of the insider's selling trend over the past year.
MicroStrategy Inc is a provider of enterprise analytics and mobility software. The company develops software to analyze internal and external data in order to make business decisions and to develop mobile apps. Its core product, MicroStrategy 10, allows organizations to analyze vast amounts of data and distribute actionable business insight throughout an enterprise. The company's analytics platform is delivered via software, cloud-based services, or a hybrid of both.
According to the data, over the past year, Michael Saylor has sold a total of 90,000 shares of MicroStrategy Inc and has not made any purchases of the stock. This latest sale is part of a broader pattern of insider selling at the company, with a total of 34 insider sells and no insider buys reported over the same timeframe.
On the day of the sale, shares of MicroStrategy Inc were trading at $484.16, giving the company a market capitalization of $8.587 billion. The stock's price-earnings ratio stood at 398.30, significantly above both the industry median of 27.02 and the company's historical median price-earnings ratio.
The stock's valuation, when compared to the GuruFocus Value (GF Value) of $291.08, suggests that MicroStrategy Inc is significantly overvalued, with a price-to-GF-Value ratio of 1.66. The GF Value is a proprietary intrinsic value estimate from GuruFocus, which takes into account historical trading multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.
The insider trend image above reflects the recent selling activity by insiders at MicroStrategy Inc, providing a visual representation of the transactions over the past year.
The GF Value image provides a graphical view of the stock's current valuation in relation to its intrinsic value, as estimated by GuruFocus.
For more detailed information and analysis on insider trades and the company's valuation, investors and analysts are encouraged to visit the SEC's website to view the full filing, as well as the GuruFocus website for comprehensive stock data and analytics.
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.
