MongoDB (NASDAQ:MDB) Shares Gap Down Following Analyst Downgrade

MongoDB, Inc. (NASDAQ:MDB) gapped down prior to trading on Wednesday after BMO Capital Markets lowered their price target on the stock from $500.00 to $450.00. The stock had previously closed at $434.21, but opened at $379.25. BMO Capital Markets currently has an outperform rating on the stock. MongoDB shares last traded at $380.76, with a volume of 1,664,639 shares traded.

A number of other brokerages also recently commented on MDB. Needham & Company LLC restated a “buy” rating and issued a $430.00 target price on shares of MongoDB in a research note on Wednesday. Tigress Financial lifted their price target on MongoDB from $430.00 to $515.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. Evercore began coverage on MongoDB in a research note on Friday, August 21st. They issued an “outperform” rating and a $525.00 price target for the company. Oppenheimer raised their price objective on shares of MongoDB from $410.00 to $475.00 and gave the company an “outperform” rating in a research report on Wednesday, August 12th. Finally, Canaccord Genuity Group lifted their target price on shares of MongoDB from $375.00 to $400.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $465.61.

Insider Buying and Selling

In other news, Director Dwight A. Merriman sold 6,000 shares of MongoDB stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $451.75, for a total value of $2,710,500.00. Following the transaction, the director owned 452,896 shares of the company’s stock, valued at $204,595,768. This trade represents a 1.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michael J. Berry sold 5,000 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $356.63, for a total transaction of $1,783,150.00. Following the sale, the chief financial officer directly owned 1,500 shares of the company’s stock, valued at approximately $534,945. This represents a 76.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 80,696 shares of company stock valued at $31,425,055 in the last quarter. Company insiders own 2.60% of the company’s stock.

MongoDB News Roundup

Here are the key news stories impacting MongoDB this week:

• Positive Sentiment: MongoDB reported revenue of $771.8 million, up 30.5% year over year and above the roughly $735 million consensus estimate. Adjusted EPS of $1.90 also exceeded expectations of approximately $1.62. MongoDB fiscal second-quarter results
• Positive Sentiment: Management raised fiscal 2027 guidance, projecting revenue of about $2.99 billion to $3.03 billion and adjusted EPS of $6.39 to $6.58. Third-quarter revenue guidance of $756 million to $761 million also topped analyst expectations. MongoDB raises fiscal 2027 outlook
• Positive Sentiment: Atlas remained a major growth driver, with revenue increasing approximately 29%, while enterprise and other revenue rose about 36%. Management cited strong enterprise workloads and early AI-related use cases as support for its upgraded outlook. MongoDB earnings call highlights
• Neutral Sentiment: Several analysts maintained Buy or Outperform ratings and issued price targets ranging from $430 to $560, suggesting that Wall Street remains broadly constructive on MongoDB’s long-term growth prospects. However, the targets vary widely after the earnings release. Analyst forecasts after MongoDB results
• Negative Sentiment: Atlas growth remained near 29%, broadly unchanged from recent quarters, disappointing investors who expected a clearer acceleration from AI demand. Chief Executive Officer Dev Ittycheria reportedly said he was surprised and disappointed by the market reaction, while noting a more meaningful Atlas growth inflection could still be several quarters away. MongoDB Atlas growth misses expectations
• Negative Sentiment: Investors also cited elevated AI and infrastructure costs, profit-taking after a strong run, and MongoDB’s demanding valuation. The company continues to report a slightly negative net margin, increasing the market’s sensitivity to any sign that growth is not accelerating quickly enough. MongoDB AI infrastructure costs

Institutional Investors Weigh In On MongoDB

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Integrated Wealth Concepts LLC lifted its position in shares of MongoDB by 31.6% during the 1st quarter. Integrated Wealth Concepts LLC now owns 1,363 shares of the company’s stock worth $239,000 after purchasing an additional 327 shares during the last quarter. NewEdge Advisors LLC increased its position in MongoDB by 55.0% in the 1st quarter. NewEdge Advisors LLC now owns 4,238 shares of the company’s stock worth $743,000 after buying an additional 1,504 shares during the period. Sivia Capital Partners LLC bought a new position in MongoDB in the 2nd quarter worth approximately $329,000. Cresset Asset Management LLC lifted its holdings in shares of MongoDB by 13.4% during the second quarter. Cresset Asset Management LLC now owns 3,138 shares of the company’s stock worth $659,000 after buying an additional 370 shares during the last quarter. Finally, Cerity Partners LLC lifted its holdings in shares of MongoDB by 28.3% during the second quarter. Cerity Partners LLC now owns 12,215 shares of the company’s stock worth $2,565,000 after buying an additional 2,697 shares during the last quarter. 89.29% of the stock is owned by institutional investors and hedge funds.

MongoDB Stock Down 13.3%

The firm has a 50-day moving average price of $369.91 and a two-hundred day moving average price of $322.27. The company has a market capitalization of $30.29 billion, a P/E ratio of -1,020.53, a PEG ratio of 3,220.66 and a beta of 1.58.

MongoDB (NASDAQ:MDB) last released its earnings results on Tuesday, September 1st. The company reported $1.90 EPS for the quarter, beating the consensus estimate of $1.62 by $0.28. MongoDB had a negative net margin of 1.12% and a negative return on equity of 1.39%. The firm had revenue of $771.77 million during the quarter, compared to analysts’ expectations of $735.01 million. During the same period in the prior year, the company earned $1.00 EPS. The business’s quarterly revenue was up 30.5% compared to the same quarter last year. MongoDB has set its Q3 2027 guidance at 1.570-1.610 EPS and its FY 2027 guidance at 6.390-6.580 EPS. On average, analysts predict that MongoDB, Inc. will post 0.01 EPS for the current fiscal year.

About MongoDB

MongoDB, Inc is a software company best known for developing MongoDB, a general-purpose, document-oriented database designed for modern application development. The company’s platform is built to support high-performance, scalable data storage and retrieval for use cases such as cloud-native applications, mobile backends, real-time analytics, and content management. MongoDB offers a mix of open-source software, commercial server distributions, and subscription-based services that include technical support, training and professional services.

The company traces its origins to 2007 when it was founded as 10gen by Dwight Merriman and Eliot Horowitz; it later adopted the MongoDB name and completed a public listing in 2017.