Royal Bank of Canada Reiterates ‘Outperform’ Rating for MongoDB Stock with Positive Price …
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On September 4, 2023, investment analysts at Royal Bank of Canada reiterated their “outperform” rating for MongoDB (NASDAQ:MDB) stock in a note sent to investors. According to Benzinga, they also set a price objective of $445.00 for the stock, suggesting a potential upside of 13.27% from the company’s previous close.
During Friday’s trading session, MDB traded up $11.58 to reach $392.88. A total of 5,887,726 shares were exchanged, compared to an average volume of 1,709,101 shares. Over the past year, MongoDB has seen a range in its stock price from a low of $135.15 to a high of $439.00. Currently, the stock has been hovering around its fifty-day moving average of $389.93 and its two-hundred day moving average of $302.86.
With regards to financials and market metrics, the company has a quick ratio and current ratio both standing at 4.19. This indicates that MongoDB has sufficient short-term assets to cover its immediate liabilities comfortably as well as meet any contingencies that may arise in the near term.
Moreover, MongoDB carries a debt-to-equity ratio of 1.44, reflecting some level of leverage employed by the organization in funding its operations. It boasts a market capitalization value amounting to $27.73 billion and operates with a price-to-earnings ratio of -84.13 against negative earnings per share figures.
Taking into account institutional investors’ activities in relation to MDB stock holdings, there have been recent changes in their positions within the company’s shares. Raymond James & Associates increased their position by 32%, while PNC Financial Services Group Inc., MetLife Investment Management LLC, Panagora Asset Management Inc., and Vontobel Holding Ltd., among others, made adjustments during the first quarter. In aggregate, hedge funds and other institutional investors currently own 88.89% of MongoDB’s stock.
Regarding the company’s financial performance, MongoDB last reported its earnings results on June 1st. For the quarter, it posted earnings per share (EPS) of $0.56, surpassing the consensus estimate of $0.18 by $0.38. The business also generated a revenue of $368.28 million during the quarter, exceeding analysts’ expectations of $347.77 million. However, MongoDB had negative return on equity (ROE) and net margin figures at -43.25% and -23.58%, respectively.
Despite these negative figures, the company’s revenue showed a positive growth rate of 29% year-over-year for that period compared to a decline in earnings in the previous year’s corresponding period when they reported earnings per share of ($1.15). Research analysts anticipate that MongoDB will post earnings per share of -2.8 for the current fiscal year.
In conclusion, MongoDB has recently received an “outperform” rating from Royal Bank of Canada with a price objective indicating potential upside from its previous closing price. While the company faces certain challenges related to negative profitability metrics, it has demonstrated strong revenue growth and continues to attract institutional investor interest within its stock holdings.
Updated on: 04/09/2023
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Research Reports, Analyst Recommendations, and Insider Sales: Assessing MongoDB’s Potential
MongoDB, Inc. (MDB), a leading modern, general-purpose database platform, has recently been the subject of several research reports and analyst recommendations. Such reports play a crucial role in providing insights into the company’s performance and growth potential for potential investors.
Piper Sandler, a renowned global investment bank and asset management firm, raised its target price on MongoDB from $400.00 to $425.00. In their research note released on Friday, Piper Sandler also provided the company with an “overweight” rating, indicating that they believe it will outperform the market.
Similarly, Needham & Company LLC, an investment banking firm specializing in technology research, increased their price objective for MongoDB shares from $430.00 to $445.00. They also issued a “buy” rating for the stock as they assessed its growth prospects.
Truist Financial, another prominent financial services company, boosted its price target on MongoDB shares from $420.00 to $430 while maintaining their “buy” rating. This positive outlook from Truist Financial aligns with other optimistic recommendations surrounding MongoDB’s future performance.
Macquarie, a leading global investment banking and financial services group headquartered in Australia, raised their target price on MongoDB shares from $434.00 to $456.00 in their report released earlier this month.
Tigress Financial impressed with MongoDB’s performance even more significantly by raising their price target from $365.00 to an impressive $490.00 just two months ago on June 28th.
These positive analyst ratings and upward revisions of price targets indicate growing confidence in the future trajectory of MongoDB’s business operations and market position.
It is worth mentioning that despite these favorable opinions exhibited by most analysts, one equity research analyst issued a “sell” rating for the stock. However, given the consensus among multiple analysts who have assigned “hold” or “buy” ratings to the company—twenty being the number of analysts with “buy” ratings—the overall sentiment remains positive.
According to data from Bloomberg, MongoDB currently holds a consensus rating of “Moderate Buy,” reflecting the varying assessments of experts in the field. The average price target for MongoDB stands at $405.35, further emphasizing analysts’ confidence in its growth potential.
Shifting the focus slightly, recent transactions involving prominent company insiders have also captured attention. Director Dwight A. Merriman reportedly sold 1,000 shares of MongoDB stock on Tuesday, July 18th, at an average price of $420.00. The total value of this transaction amounted to $420,000.00. As a result of this sale, Merriman now holds 1,213,159 shares directly in the company’s stock with an estimated value of $509,526,780.
In addition to Merriman’s sale, CRO Cedric Pech sold 360 shares of MongoDB stock on Monday, July 3rd, at an average price of $406.79. The total value generated from this transaction equaled $146,444.40. Following this sale, Pech now possesses 37,156 shares in the company worth approximately $15,114,689.24.
These insider transactions demonstrate significant sales activity within the company over the past ninety days amounting to 76,551 shares and totaling approximately $31,143,942 in value. However,it is important to note that these sales account for only about 4.80% ownership by insiders in regards to the company’s stock.
While researching opportunities in the financial market and evaluating investment options requires careful consideration and analysis based on individual risk tolerance and other related factors—these research reports and insider transactions can provide valuable insights into MongoDB’s current outlook and future prospects.
Overall,the combination of positive analyst ratings,sizable price target revisions,and notable insider sales activity showcases both cautious optimism and ongoing interest surrounding MongoDB,Inc.