MongoDB (MDB) Stock: Insiders Dump $26 Million While Analysts Stay Bullish

TLDR

• Shares dropped 5.9% to $386.81 on Wednesday despite crushing earnings expectations
• Q3 results showed $1.32 EPS versus $0.79 estimate and $628.3M revenue, up 18.7%
• Analysts lifted price targets with Citigroup at $525 and consensus at $420.26
• Insiders offloaded $26M worth of shares while institutions hold 89.3%
• Company guides Q4 EPS to $1.44-$1.48 with negative 3.06% net margin

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MongoDB experienced a rough trading session Wednesday as shares tumbled 5.9% to $386.81. The drop happened even though the company delivered impressive quarterly results just weeks ago.

MongoDB, Inc., MDB

The stock fell from its previous close of $411.19. Trading volume reached 1,033,467 shares, which was 32% lighter than the typical daily average of 1.5 million shares.

The company’s December earnings report showed strong performance. MongoDB reported $1.32 earnings per share, destroying analyst predictions of $0.79. Revenue hit $628.31 million, topping forecasts of $592.98 million.

Revenue jumped 18.7% compared to the same period last year. The prior year’s quarter saw earnings of $1.16 per share.

Wall Street Keeps Faith

Analysts continue showing confidence in MongoDB’s prospects. Citigroup lifted its price target from $440 to $525 on December 3rd, maintaining a buy rating. Piper Sandler increased their target to $490 from $400 with an overweight rating.

Needham kept a buy rating with a $500 target. Goldman Sachs stuck with its buy rating at $475. UBS raised their neutral rating target from $330 to $440.

Among 41 analysts covering the stock, two rate it Strong Buy, 29 say Buy, nine Hold, and one Sell. The average target price of $420.26 suggests roughly 9% upside from Wednesday’s close.

The database company earned a Zacks Rank of #1, their highest rating category. MongoDB’s forward P/E ratio stands at 85.92 compared to the industry average of 23.95.

Financial Picture Shows Contrasts

MongoDB carries a $31.49 billion market cap with a beta of 1.38. The stock’s 50-day moving average sits at $391.14 while its 200-day moving average is at $316.92.

The company still loses money with a negative 3.06% net margin and -1.12% return on equity. Its P/E ratio of -444.70 reflects ongoing unprofitability.

Management projects Q4 2026 EPS between $1.44 and $1.48. Full year guidance calls for $4.76 to $4.80 in earnings per share. Analysts expect -$1.78 EPS for the current fiscal year.

The next earnings report should show $1.46 per share, representing 14.06% growth. Revenue estimates point to $667.61 million, up 21.74% year-over-year.

Insider Selling Raises Eyebrows

Director Hope F. Cochran sold 1,566 shares December 17th at $421.85 each, totaling $660,617. The sale cut her stake by 5.75%.

Director Roelof Botha unloaded 24,850 shares December 5th at $405.85 per share for $10,085,372. This transaction reduced his position by 11.32%.

Total insider sales last quarter reached 67,023 shares worth approximately $26 million. Insiders now own just 3.10% of outstanding shares while institutional investors control 89.29%.

Integrated Wealth Concepts grew its position by 31.6% to 1,363 shares in Q1. NewEdge Advisors increased holdings 55% to 4,238 shares. Parallel Advisors added 20% to reach 1,494 shares.

Zacks consensus estimates project full year earnings of $4.79 per share on $2.44 billion revenue, representing 30.87% and 21.43% growth respectively.

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