MicroStrategy Inc . (NASDAQ:MSTR) recently reported that Jeanine Montgomery, the company's Senior Vice President and Chief Accounting Officer, executed a series of stock transactions on November 18, 2024. Montgomery sold 46 shares of MicroStrategy's Class A common stock at an average price of $359.56 per share, totaling approximately $16,539.
In addition to the sale, Montgomery acquired 100 shares of Class A common stock through a transaction involving restricted stock units. These units represent a contingent right to receive one share of MicroStrategy's Class A common stock per unit. Following these transactions, Montgomery directly owns 6,472 shares of the company's stock.
The sale was conducted under a Rule 10b5-1 instruction letter, which was entered into earlier this year to cover tax obligations related to the vesting of previously granted equity awards.
In other recent news, MicroStrategy Incorporated has made significant strides in its Bitcoin acquisition strategy. The firm recently procured an additional 51,780 Bitcoins, funded by a stock offering that generated around $4.6 billion, bringing the company's total Bitcoin holdings to approximately 331,200. This is in line with MicroStrategy's unique approach to use Bitcoin as its treasury reserve asset, a strategy which has been highlighted by Benchmark as a key reason for upgrading their price target on the company's shares from $300 to $450.
Despite a shift in its software business towards cloud services that resulted in a drop in total software revenues, MicroStrategy remains committed to its aggressive Bitcoin acquisition strategy. Subscription services are growing and now account for 24% of the company's total revenue.
These developments follow market optimism for cryptocurrency, with potential gains predicted for crypto stocks like MicroStrategy. The firm's focus on Bitcoin has been recognized by analysts as a long-term value proposition, and the recent Bitcoin purchases have been noted as a significant factor in the company's market performance.
InvestingPro Insights
As MicroStrategy's Senior Vice President and Chief Accounting Officer Jeanine Montgomery adjusts her stock holdings, recent data from InvestingPro sheds light on the company's current market position and performance.
MicroStrategy's stock has shown remarkable strength recently, with a 78.26% price return over the past month and an impressive 691.39% return over the last year. This surge has brought the stock price to 96.14% of its 52-week high, indicating strong momentum.
However, investors should note that MicroStrategy is currently trading at a high revenue valuation multiple, with a Price to Book ratio of 20.66 as of the last twelve months ending Q3 2024. This suggests the stock may be priced at a premium compared to its book value.
An InvestingPro Tip highlights that the company's net income is expected to drop this year, which could be a concern for investors focused on profitability. Additionally, analysts do not anticipate the company will be profitable this year, as indicated by another InvestingPro Tip.
Despite these challenges, MicroStrategy operates with a moderate level of debt, which may provide some financial flexibility. The company's revenue for the last twelve months ending Q3 2024 stood at $467.24 million, although it experienced a revenue decline of 7.35% during this period.
For readers interested in a more comprehensive analysis, InvestingPro offers 17 additional tips for MicroStrategy, providing a deeper understanding of the company's financial health and market position.
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