MicroStrategy stock: buy or sell
Updated on:
Jun 22nd, 2021
1
MicroStrategy stock brief
- MicroStrategy closed on Monday at $583.67 after sinking a -9.71%.
- Citigroup posted a strong sell rating for MicroStrategy on Tuesday, with a target of $360.00
- From the chart point view, price is drawing a scaled uptrend since mid-May with higher tops and higher bottoms. Up to date, the uptrend marked a 41.81% gain since the beginning of this rally
- MicroStrategy Incorporated provides enterprise analytics software and services worldwide.
Should I buy MicroStrategy stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $MSTR stock a buy?
Currently, MicroStrategy stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean $MSTR will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell MicroStrategy stock?
Knowing when to sell a stock is even harder than knowing when to buy it. Much like when we have to buy shares, choosing when is appropiate to sell is not a haphazard decision, and we must follow our own trading strategy. Our trading system selects very simple strategies to guide us on when is a good time to sell a stock. Be aware that these strategies should not be used for selling short MicroStrategy stock
A guiding principle is that you should never hold an investment that generates losses greater than those expected upon purchase. The timing to sell your stock should always be dictated by the stop-loss (automatic or manual)
Is it time to sell MicroStrategy stock?
In the current situation of MicroStrategy there is not any eligible sell setup, so MicroStrategy stock holders with operations in green can keep their positions
MicroStrategy ratings
In the last month, 2 analyst ratings were published for MicroStrategy
| Brokerage firm | Rating |
|---|---|
| May 24th, 2021 | |
| Jefferies Financial Group | Neutral |
| Jun 22nd, 2021 | |
| Citigroup | |
MicroStrategy stock analysis
Since in mid-May, MicroStrategy has been drawing an uptrend that by now marked an amazing 41.81%. The price shows rising peaks and troughs, and along the way gave very few buying opportunities for those who wanted to invest. Latest pullback was on June 8, when price bounced at $427.93. Now, the price moves in a consolidation between its last top ($647.65) and its last bottom ($427.93)
SMAs overview
Supports and resistances
The current resistances are:
The current supports are:
Bollinger bands
Since the price surpassed the upper band last Friday, the price dropped by 9.88%
Relative strength index
When the fluctuates for so long below 70 and above 30, without indicating moments of overvaluation and undervaluation, the indicator turns out to be of little use, and we are currently in one of these cases.
MicroStrategy stock price history
MicroStrategy went public priced at an adjusted price1 of $80.00 on Jun 1998. Since then, MSTR stock surged by 629.59%, with an average of 27.37% per year. If you had invested $1,000USD in MicroStrategy stock on Jun 1998, it would have a value of $7,295.88 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for MicroStrategy stock
Nobody can predict how much a share will be priced in the future. Banks and financial organisations post their analysis predicting how a stock will performance in the future.
The following table shows the price predictions published by financial institutions in the last 30 days. If you are a small investor you should not trade based on these price targets.
The average price target for MicroStrategy stock calculated from the table below is $450.00. MicroStrategy closed at $583.67 on Monday, so the target price is forecasting a decrease by 22.90%.
| Brokerage firm | Price target |
|---|---|
| May 24th, 2021 | |
| Jefferies Financial Group | $700.00 → $540.00 |
| Jun 22nd, 2021 | |
| Citigroup | $450.00 → $360.00 |
Earnings and financials
MicroStrategy ($MSTR) hosted the quarterly earnings event and posted the report last April. MicroStrategy surpassed market estimates and presented of $1.54, that is a 185.19% better than expected compared to the forecasts of $0.54. On the other hand, reported revenues were $122.9 million versus estimates of $111.9 million.
In comparing, the EPS for the same quarter last year was $0.07, so posted EPS means a improvement of 2,100.00%. Looking at revenue, figures went up a 10.30% compared to $1.1B same quarter 12 months ago.MicroStrategy ($MSTR) releases Q2 financial report late next July. Estimated for this quarter is $1.03, compared to $1.54 that was reported for Q1.
MicroStrategy performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| MicroStrategy ($MSTR) | 23.70% | -18.60% | 97.90% |
Important:
The comments expressed in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this article does not have any knowledge of the individual scenarios of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are expressed for learning purposes onlyMicroStrategy summary
| Monday, June 21st, 2021 | |
|---|---|
| Open | $599.17 |
| Close | $583.67 |
| Day range | $577 - $614 |
| Previous close | $646.46 |
| Session gain | -9.71% |
| Average true range | $48.33 |
| 50d mov avg | $577.55 |
| 100d mov avg | $671.95 |
| 200d mov avg | $469.15 |
| Earnings date | July 27th, 2021 |