Michael Saylor, Executive Chairman and 10% Owner of MicroStrategy Inc (NASDAQ:MSTR), sold 5,000 shares of the company on February 28, 2024, according to a recent SEC filing. The transaction was executed at an average price of $961 per share, resulting in a total sale amount of $4,805,000.
MicroStrategy Inc is a provider of enterprise analytics and mobility software. The company develops software that enables organizations to analyze internal and external data to make business decisions and to develop mobile applications. Its core product is MicroStrategy 10, which provides interactive dashboards, scorecards, highly formatted reports, ad hoc query, thresholds and alerts, and automated report distribution.
Over the past year, Michael Saylor has sold a total of 175,000 shares of MicroStrategy Inc and has not made any purchases of the stock. The insider transaction history for the company shows a pattern of 72 insider sells and no insider buys over the same timeframe.
On the day of the sale, MicroStrategy Inc shares were trading at $961, giving the company a market capitalization of $17.35 billion. The price-earnings ratio of the company stands at 40.17, which is above the industry median of 27.88 and also higher than the company's historical median price-earnings ratio.
According to the GuruFocus Value chart, with a current price of $961 and a GF Value of $254.65, MicroStrategy Inc is significantly overvalued, with a price-to-GF-Value ratio of 3.77.
The GF Value is a proprietary intrinsic value estimate from GuruFocus, which is calculated based on historical trading multiples, a GuruFocus adjustment factor related to the company's past performance, and future business performance estimates provided by Morningstar analysts.
Investors and analysts often monitor insider sales as they can provide insights into how corporate executives view the stock's valuation and future prospects. The recent sale by Michael Saylor may attract attention from the market, considering his role as Executive Chairman and significant ownership stake in the company.
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.
