Microstrategy’s (MSTR) President and CEO, Phong Le, sold nearly $13.5 million worth of MSTR stock last week. Perhaps, this decision comes as the company’s stock price has experienced significant growth, with shares rising by 137.5% year-to-date.
The surge in stock price is mainly attributed to the increasing value of Microstrategy’s substantial Bitcoin (BTC-USD) holdings. As the value of the company’s Bitcoin holdings appreciates, MSTR’s overall valuation has grown, driving a corresponding increase in its stock price.
MSTR is a business intelligence and analytics company known for its software solutions and considerable investments in Bitcoin. As of July 31, the company held 226,500 bitcoins.
CEO’s Recent Transactions
According to the most recent SEC filing, Le divested 50,000 shares of MSTR on August 22, at prices ranging from $137.13 to $140.44 per share. Simultaneously, he exercised an option to purchase 50,000 shares at a significantly lower price of $15.16 per share.
It is worth mentioning that on August 16, the CEO disposed of 48,838 shares for a total transaction value of $6.6 million. Meanwhile, he acquired the same number of shares through an option. Interestingly, after the latest sell transaction, Le still owns MSTR shares worth roughly $1.90 million.
Bearish Insider Trading Signal
Le is not the only one taking advantage of MSTR’s bull run. Overall, corporate insiders have sold $22.3 million worth of stock over the past three months. TipRanks’ Insider Trading Activity Tool shows that insider confidence in the stock is currently Very Negative.
Investors may benefit from keeping an eye on transactions made by key insiders, as these transactions typically reflect their confidence in the company’s prospects. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is MSTR a Good Stock to Buy?
The stock has a Strong Buy consensus rating, backed by Buy ratings from all eight analysts covering it. Despite the year-to-date rally, the analysts’ average price target on MSTR stock of $216.63 implies 44.41% upside potential from current levels.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
