On January 5, 2024, Michael Saylor, Executive Chairman and 10% Owner of MicroStrategy Inc (MSTR, Financial), sold 5,000 shares of the company's stock, according to a recent SEC Filing. This transaction follows a pattern observed over the past year, where the insider has sold a total of 10,000 shares and has not made any purchases.
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.
The insider transaction history for MicroStrategy Inc shows a lack of insider purchases over the past year, with 0 buys recorded. In contrast, there have been 17 insider sells in the same period, indicating a trend of insider sales.
On the valuation front, MicroStrategy Inc's shares were priced at $640.6 on the day of the insider's recent sale, resulting in a market cap of $10.008 billion. The price-earnings ratio stands at 463.57, substantially above both the industry median of 26.83 and the company's historical median price-earnings ratio.
The stock's price-to-GF-Value ratio is 2.2, with a current share price of $640.6 and a GF Value of $290.54, indicating that MicroStrategy Inc is significantly overvalued according to GuruFocus's valuation model.
The GF Value is calculated considering historical trading multiples such as price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, along with a GuruFocus adjustment factor based on the company's past returns and growth, and future business performance estimates provided by Morningstar analysts.
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.
