MongoDB (NASDAQ:MDB) Shares Up 6% – Still a Buy?

MongoDB, Inc. (NASDAQ:MDB) shares traded up 6% on Wednesday. The stock traded as high as $370.43 and last traded at $357.5260. 1,907,032 shares changed hands during trading, a decline of 4% from the average daily volume of 1,992,845 shares. The stock had previously closed at $337.19.

MongoDB News Roundup

Here are the key news stories impacting MongoDB this week:

• Positive Sentiment: Investor Day highlighted new AI growth drivers. MongoDB introduced MongoDB 9.0, Atlas Infinite and Atlas Agent Engine. The company said MongoDB 9.0 can deliver up to twice the throughput, 35% faster reads and 30% faster updates, while Atlas Infinite is designed to handle unpredictable AI-driven demand. Management also outlined targets for more than 20% revenue growth, mid-20% Atlas growth, annual margin expansion of 100–200 basis points and GAAP profitability by fiscal 2027. MongoDB launches MongoDB 9.0 and Atlas Infinite
• Positive Sentiment: Analysts remain broadly constructive. Citizens JMP reaffirmed “market outperform” with a $519 price target, RBC maintained “outperform” at $465, Needham reiterated “buy” at $430 and BMO kept an “outperform” rating with a $420 target. A Seeking Alpha contributor also upgraded MDB to “buy” following Investor Day. MongoDB CEO’s parting gift to bulls
• Positive Sentiment: Options activity suggests increased bullish positioning. Traders bought 29,206 call options, approximately 40% above the stock’s average daily call volume, indicating heightened speculative interest.
• Neutral Sentiment: MongoDB partnered with Cognition, the developer of Devin, to help enterprises modernize legacy infrastructure for MongoDB Atlas. The partnership could support adoption, although its financial impact is not yet clear. Cognition and MongoDB partnership
• Negative Sentiment: CEO Chirantan “CJ” Desai’s abrupt move to Meta remains the key risk. MongoDB appointed former CEO Dev Ittycheria as interim chief executive, but investors remain concerned about leadership continuity and the possibility that Meta’s new enterprise AI initiative could compete with MongoDB. Stifel, Stephens and BMO lowered their price targets, despite maintaining positive or neutral ratings.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on MDB. Evercore restated an “outperform” rating on shares of MongoDB in a research note on Thursday, September 24th. UBS Group reiterated a “neutral” rating on shares of MongoDB in a research note on Wednesday. BMO Capital Markets decreased their price objective on shares of MongoDB from $450.00 to $420.00 and set an “outperform” rating for the company in a research report on Wednesday. Truist Financial increased their target price on shares of MongoDB from $400.00 to $475.00 and gave the stock a “buy” rating in a research note on Thursday, August 20th. Finally, Sanford C. Bernstein raised their target price on MongoDB from $449.00 to $484.00 and gave the company an “outperform” rating in a research report on Wednesday, September 2nd. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $465.25.

MongoDB Trading Up 5.8%

The firm’s 50-day moving average is $387.97 and its two-hundred day moving average is $331.74. The stock has a market cap of $28.75 billion, a price-to-earnings ratio of 504.36, a P/E/G ratio of 35.95 and a beta of 1.58.

MongoDB (NASDAQ:MDB) last posted its quarterly earnings data on Tuesday, September 1st. The company reported $1.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.62 by $0.28. MongoDB had a return on equity of 1.06% and a net margin of 2.12%.The company had revenue of $771.77 million for the quarter, compared to analysts’ expectations of $735.01 million. During the same period in the previous year, the firm posted $1.00 EPS. MongoDB’s 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 0.47 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Dwight Merriman sold 6,000 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $451.75, for a total transaction of $2,710,500.00. Following the completion of the sale, the director directly owned 452,896 shares in the company, valued at approximately $204,595,768. The trade was a 1.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Hope Cochran sold 1,000 shares of the firm’s stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $375.92, for a total value of $375,920.00. Following the completion of the transaction, the director owned 28,326 shares in the company, valued at $10,648,309.92. The trade was a 3.41% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 17,000 shares of company stock worth $7,792,320 over the last ninety days. Corporate insiders own 2.60% of the company’s stock.

Hedge Funds Weigh In On MongoDB

Several hedge funds and other institutional investors have recently modified their holdings of MDB. Arrowstreet Capital Limited Partnership boosted its position in MongoDB by 21.8% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,336,397 shares of the company’s stock worth $560,872,000 after acquiring an additional 239,338 shares during the last quarter. Capital World Investors lifted its stake in MongoDB by 129.1% in the 4th quarter. Capital World Investors now owns 980,182 shares of the company’s stock worth $411,373,000 after purchasing an additional 552,434 shares in the last quarter. Fred Alger Management LLC boosted its holdings in shares of MongoDB by 7.3% during the 4th quarter. Fred Alger Management LLC now owns 561,614 shares of the company’s stock worth $235,704,000 after purchasing an additional 38,225 shares during the last quarter. Bank of America Corp DE boosted its holdings in shares of MongoDB by 0.3% during the 1st quarter. Bank of America Corp DE now owns 555,305 shares of the company’s stock worth $135,922,000 after purchasing an additional 1,852 shares during the last quarter. Finally, Harel Insurance Investments & Financial Services Ltd. grew its position in shares of MongoDB by 55.0% in the first quarter. Harel Insurance Investments & Financial Services Ltd. now owns 549,970 shares of the company’s stock valued at $134,616,000 after purchasing an additional 195,250 shares in the last quarter. 89.29% of the stock is owned by hedge funds and other institutional investors.

MongoDB Company Profile

MongoDB, Inc develops and provides a general-purpose, document-oriented database platform. Its technology is designed to help organizations store, manage and analyze structured and unstructured data for applications such as artificial intelligence, analytics, mobile services, e-commerce and enterprise software.

The company’s principal offering is MongoDB Atlas, a fully managed cloud database service available across major cloud infrastructure providers. MongoDB also offers Enterprise Advanced, which provides commercial database software, security, operational controls and support for organizations running databases in their own environments or across hybrid and multicloud infrastructures.