MongoDB (MDB) Stock Drops 6% as Insiders Dump $26 Million in Shares

TLDR

• MongoDB stock fell 5.9% to $386.81 on Wednesday with trading volume 32% below average
• Company beat Q3 estimates with $1.32 EPS versus $0.79 expected and revenue of $628.3M, up 18.7% year-over-year
• Multiple analysts raised price targets including Citigroup to $525 and Needham to $500, with consensus at $420.26
• Insiders sold 67,023 shares worth $26M last quarter while institutional investors own 89.3% of the company
• MongoDB maintains negative net margin of 3.06% and guides Q4 2026 EPS to $1.44-$1.48

MongoDB shares took a hit on Wednesday, dropping 5.9% to close at $386.81. The decline came despite strong analyst support and better-than-expected earnings results from last month.

MongoDB, Inc., MDB

Trading volume reached 1,033,467 shares, down 32% from the typical session average of 1.5 million shares. The stock had closed the previous day at $411.19.

The company’s recent earnings report showed impressive results. MongoDB posted earnings per share of $1.32, crushing analyst estimates of $0.79 by $0.53. Revenue came in at $628.31 million for the quarter, beating expectations of $592.98 million.

Year-over-year revenue growth hit 18.7% compared to the same quarter last year. Last year during the same period, the company earned $1.16 per share.

Analyst Optimism Remains Strong

Wall Street continues to back MongoDB with upgraded price targets. Citigroup raised its target from $440 to $525 with a buy rating on December 3rd. Piper Sandler bumped their target to $490 from $400 with an overweight rating.

Needham maintained a buy rating with a $500 price target. Goldman Sachs kept its buy rating with a $475 target. UBS increased their neutral rating target from $330 to $440.

The consensus among 41 analysts shows two Strong Buy ratings, 29 Buy ratings, nine Hold ratings, and one Sell rating. The average price target sits at $420.26, about 9% above Wednesday’s closing price.

MongoDB currently holds a Zacks Rank of #1, indicating Strong Buy status. The company’s forward P/E ratio stands at 85.92, well above the industry average of 23.95.

Financial Metrics Tell Mixed Story

The database platform company carries a market cap of $31.49 billion with a beta of 1.38. The 50-day moving average sits at $391.14, while the 200-day average is $316.92.

MongoDB still operates at a loss with a negative net margin of 3.06% and negative return on equity of 1.12%. The P/E ratio shows -444.70 due to the company’s current unprofitability.

For Q4 2026, management guides EPS between $1.44 and $1.48. Full year 2026 guidance projects EPS of $4.76 to $4.80. Analysts project the company will post -$1.78 EPS for the current year.

Looking ahead, consensus estimates call for earnings of $1.46 per share in the next earnings release. That would represent 14.06% year-over-year growth. Revenue expectations stand at $667.61 million, up 21.74% from last year.

Insider activity showed heavy selling last quarter. Director Hope F. Cochran sold 1,566 shares on December 17th at $421.85 per share for $660,617. This represented a 5.75% decrease in her holdings.

Director Roelof Botha sold 24,850 shares on December 5th at an average price of $405.85, totaling $10,085,372. This sale reduced his stake by 11.32%. Overall, insiders dumped 67,023 shares worth roughly $26 million in the last quarter.

Corporate insiders now own just 3.10% of the company’s stock. Institutional investors control 89.29% of MongoDB shares.

Several institutions made moves in recent months. Integrated Wealth Concepts grew its stake by 31.6% in Q1, now holding 1,363 shares. NewEdge Advisors boosted holdings by 55% to 4,238 shares. Parallel Advisors increased its position by 20% to 1,494 shares.

Full year Zacks consensus estimates project earnings of $4.79 per share on revenue of $2.44 billion. That represents growth of 30.87% and 21.43% respectively from the previous year.

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