Insiders Could Be Selling MongoDB, Inc. (MDB) Shares For Good

The sell to buy ratio for MongoDB, Inc. (NASDAQ:MDB) over the past 12 months was at 1.04, pointing to bearish sentiments about the stock among corporate executives and directors. MDB recorded 23 sales transactions on the open market over the last 3 months with a sale of around 165,889 shares. On the other hand, purchases amounted to 146,718 shares in that period. Looking at a longer time frame, the 52 week selling total stands at 11,686,947 shares when buyers snapped up 11,257,311 shares. The total signifies nearly a 1.04-to-1 sell/buy ratio.

On October 08, 2019, MongoDB, Inc. (NASDAQ:MDB) shares lost -6.74% or -9.22 points to close at $127.5 with a heavy trading volume of 1.779 million shares. It opened the trading session at $135.39, the shares rose to $137.59 and dropped to $127.33, the range by which the price of stock traded the whole day. The company now has a market cap of $7.06 billion and currently has 55.39 million outstanding shares. MongoDB, Inc. (MDB) stock has plunged -2.95 percent of market value in 21 trading days.

MDB stock’s trailing 3-year beta is 0, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was -$2.01 share in the trailing 52 weeks. The stock’s value surged 52.26 percent year to date (YTD) compared to a rise of 75.26 percent in 52 week’s period. The firm’s shares are still trading -31 percent below its 1-year high of $184.78 and 104.66 percent up from 52-week low of $62.30. The average consensus ranking on the company is 2.1, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Past records have indicated that shares in MongoDB, Inc. declined on 4 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of MDB’s Q3 earnings on December 04. Analysts are predicting revenue to climb 65.6 percent to $99.75M in the financial third quarter, while EPS will soar by about -6.67 percent to -$0.28 per share. In the last quarter, it earnings of -$0.26 per share came better than the -$0.30042, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $85.48M, topping the $74.02M analysts had expected. Earnings are seen to rise by 46.3 percent this year, 28.3 percent in the coming year and the trend continues by 0 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at MongoDB, Inc. (NASDAQ:MDB) and observe the pattern. The earliest insider trade happened on 10/03/2019. Pech Cedric parted with a total of 0.13 thousand shares of the firm at average share price of $120.98. The total amount for the sale was set at $15.85 thousand. On completing this exchange, the Chief Revenue Officer account balance was 28.88 thousand shares. The stock grew 13.01 percent from that insider sale. On 10/02/2019, Gordon Michael Lawrence, COO and CFO, did a sale of 3.21 thousand shares at a price of $116.55 per share. This got rid of 373.78 thousand shares from the insider’s fortune and the stock experienced a 17.31 percent rally in price since the news became public. This exchange saw 103.77 thousand shares get out from the COO and CFO account.

On 10/02/2019, Principal Accounting Officer Bull Thomas recorded a sale transaction valued at $53.85 thousand. The sale at $116.55 a share has eliminated 0.46 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 17.31 percent increase since the transaction reporting date. The company insider is left with 12.26 thousand shares remaining in the account. Ittycheria Dev, who works as President & CEO at the company, performed a sale of 28.75 thousand shares in a transaction worth $3.42 million. The disposal recorded on 10/02/2019 was priced at $118.9 per share. The stock price soared 14.99 percent since the transaction. Ittycheria Dev currently holds a stake of 183.85 thousand in MDB stock which is worth $23.44 million after the insider selling.

The stock is lingering around the initial support level of $124.02. After this, the following support is at the zone of $120.55. Up until the time the MDB stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 46 on the daily chart, and this may be a cause for concern. In case the price goes below $120.55 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $134.28 level may cause a pull-back move approaching $141.07 mark.

It is additionally sporting a 20 on the Price-to-Sales ratio, compared to the industry’s P/S average of 7.1. MongoDB, Inc. has a 70.9% gross profit margin, with its operating margin around -30.3%. Alongside this, the company’s net profit margin currently stands at -31.2%.