MicroStrategy Inc (NASDAQ:MSTR), a provider of enterprise analytics and mobility software, has seen a recent insider transaction according to the latest SEC filings. Director Jarrod Patten sold 2,575 shares of the company on March 12, 2024. The transaction was reported in an SEC Filing, which provides detailed information about insider trades.
Jarrod Patten has been active in the market over the past year, selling a total of 18,900 shares and making no purchases of the company's stock. This latest sale continues the trend of insider selling at MicroStrategy Inc, with a total of 91 insider sells and no insider buys reported over the past year.
On the date of the insider's recent sale, shares of MicroStrategy Inc were trading at $1,526.88, giving the company a market capitalization of $29.96 billion. The price-earnings ratio of the company stands at 62.67, which is above both the industry median of 28.11 and the historical median for the company. This suggests a higher valuation compared to its peers and its own past trading history.
The stock's valuation also appears to be high when considering the GuruFocus Value (GF Value). With a share price of $1,526.88 and a GF Value of $251.68, MicroStrategy Inc has a price-to-GF-Value ratio of 6.07, indicating that the stock is Significantly Overvalued according to this metric.
The GF Value is calculated based on historical trading multiples such as price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, as well as a GuruFocus adjustment factor that accounts for the company's past returns and growth, and future business performance estimates from Morningstar analysts.
The insider's recent sale may attract the attention of investors who track insider behavior as an indicator of a company's future performance. However, it is important to consider a wide range of factors, including fundamental analysis and broader market trends, when making investment decisions.
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.
