MicroStrategy Inc (MSTR, Financial), a provider of enterprise analytics and mobility software, has reported an insider sale according to a recent SEC filing. President & CEO Phong Le sold 10,000 shares of the company on February 28, 2024. The transaction was executed at an average price of $966.33 per share, resulting in a total value of $9,663,300.
Over the past year, Phong Le has sold a total of 60,000 shares of MicroStrategy Inc and has not made any purchases of the stock. This latest transaction continues a trend of insider sales at the company, with a total of 77 insider sells and no insider buys over the past year.
The market capitalization of MicroStrategy Inc stands at $18.316 billion as of the date of the insider sale. The stock's price-earnings ratio is 42.40, which is above both the industry median of 28.125 and the historical median for the company. This indicates a higher valuation compared to its peers and its own past earnings multiples.
Regarding the stock's valuation, MicroStrategy Inc's shares are trading significantly above the GuruFocus Value (GF Value) estimate. With a share price of $966.33 and a GF Value of $254.42, the price-to-GF-Value ratio is 3.8, suggesting that the stock is Significantly Overvalued.
The GF Value is determined by considering historical trading multiples such as price-earnings, price-sales, price-book, and price-to-free cash flow ratios, along with a GuruFocus adjustment factor based on the company's past returns and growth, and future business performance estimates from Morningstar analysts.
The insider selling activity at MicroStrategy Inc, particularly by the President & CEO Phong Le, may be of interest to investors monitoring insider behaviors as an indicator of company performance and valuation.
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.
