Shares of MicroStrategy (NASDAQ:MSTR) rallied in today’s trading after the software company, which is also the largest corporate holder of Bitcoin (BTC-USD), announced plans to execute a 10-for-1 stock split of its class A and class B common stock “to make its stock more accessible to investors and employees.” The stock price of the company’s shares will be lowered accordingly, which will maintain the same market capitalization once the split is done.
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The stock split will be carried out through a stock dividend to shareholders of record as of August 1, 2024. As a result, each holder of a share of class A and class B common stock will receive nine additional shares. The new shares are set to be distributed after trading closes on August 7, 2024, and trading will begin on a split-adjusted basis on August 8, 2024.
Investor Sentiment for MSTR Stock
The sentiment among TipRanks investors is currently very positive. Out of the 745,209 portfolios tracked by TipRanks, 0.7% hold MSTR stock. In addition, the average portfolio weighting allocated towards MSTR among those who do have a position is 6.7%. This suggests that investors of the company are confident about its future.
Additionally, despite Bitcoin’s recent pullback, 8.1% of those holding the stock increased their positions in the last 30 days. As a result, the stock’s sentiment is well above the sector average, as demonstrated in the following image:
Is MSTR Stock a Good Buy?
Overall, Wall Street analysts have a Strong Buy consensus rating on MSTR stock based on six Buys assigned in the past three months, as indicated by the graphic below. After a 224% rally in its share price over the past year, the average MSTR price target of $2,186.83 per share implies 67.48% upside potential.
