Key Points
- Director Jarrod Patten sold 1,900 shares on April 9 at an average price of $130.58 for a $248,102 transaction, trimming his stake by 6.35% to 28,000 shares (SEC filing disclosed).
- Strategy purchased ~13,927 BTC (~$1.0B), pushing corporate holdings toward ~780,897 BTC, but the buy was funded entirely by issuing STRC perpetual preferred shares that carry an ~11.5% dividend, raising concerns about higher fixed funding costs.
- Despite the BTC buys, the company reported a quarterly loss of ($42.93) EPS with a negative net margin of 806.34% and negative ROE, highlighting persistent operating losses even as revenue edged up year-over-year.
Strategy Inc (NASDAQ:MSTR - Get Free Report) Director Jarrod Patten sold 1,900 shares of the stock in a transaction on Thursday, April 9th. The shares were sold at an average price of $130.58, for a total transaction of $248,102.00. Following the transaction, the director owned 28,000 shares of the company's stock, valued at $3,656,240. This trade represents a 6.35% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link.
Strategy Trading Up 2.9%
Shares of MSTR opened at $132.36 on Tuesday. Strategy Inc has a twelve month low of $104.17 and a twelve month high of $457.22. The company has a market cap of $44.18 billion, a P/E ratio of -7.19 and a beta of 3.55. The company has a current ratio of 5.62, a quick ratio of 5.62 and a debt-to-equity ratio of 0.18. The company's fifty day simple moving average is $131.99 and its 200-day simple moving average is $185.49.
Strategy (NASDAQ:MSTR - Get Free Report) last announced its earnings results on Thursday, February 5th. The software maker reported ($42.93) earnings per share for the quarter, missing the consensus estimate of $46.02 by ($88.95). Strategy had a negative net margin of 806.34% and a negative return on equity of 8.74%. The firm had revenue of $122.99 million during the quarter, compared to analysts' expectations of $117.42 million. During the same period in the prior year, the company posted ($3.03) EPS. The company's revenue was up 1.9% compared to the same quarter last year.
Institutional Inflows and Outflows
Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Binnacle Investments Inc grew its holdings in Strategy by 492.9% during the 2nd quarter. Binnacle Investments Inc now owns 83 shares of the software maker's stock worth $34,000 after acquiring an additional 69 shares in the last quarter. Pilgrim Partners Asia Pte Ltd bought a new position in Strategy during the 3rd quarter worth about $32,000. Quent Capital LLC bought a new position in Strategy during the 3rd quarter worth about $33,000. Salomon & Ludwin LLC bought a new position in Strategy during the 3rd quarter worth about $39,000. Finally, SOA Wealth Advisors LLC. grew its holdings in Strategy by 44.4% during the 3rd quarter. SOA Wealth Advisors LLC. now owns 117 shares of the software maker's stock worth $38,000 after acquiring an additional 36 shares in the last quarter. 59.84% of the stock is currently owned by institutional investors.
Wall Street Analysts Forecast Growth
Several brokerages have recently weighed in on MSTR. Cantor Fitzgerald began coverage on shares of Strategy in a research note on Tuesday, January 27th. They issued an "overweight" rating on the stock. Citigroup reduced their target price on shares of Strategy from $485.00 to $325.00 and set a "buy" rating on the stock in a research note on Monday, December 22nd. Truist Financial set a $268.00 target price on shares of Strategy in a research note on Friday, January 9th. HC Wainwright reissued a "buy" rating on shares of Strategy in a research note on Friday, February 6th. Finally, BTIG Research reissued a "buy" rating on shares of Strategy in a research note on Wednesday, April 8th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $361.79.
Get Our Latest Research Report on Strategy
Strategy News Roundup
Here are the key news stories impacting Strategy this week:
- Positive Sentiment: Strategy bought 13,927 Bitcoin (~$1.0B) last week, pushing corporate holdings toward ~780,897 BTC — a clear sign management remains committed to growing its BTC treasury, which supports the stock’s narrative as a Bitcoin proxy. Strategy buys 13,927 Bitcoin for $1B, holdings near 800,000 BTC
- Positive Sentiment: Analyses highlighting that Strategy’s Bitcoin reserves far exceed its debt frame the company as relatively solvent on a BTC-reserve basis — a bullish structural argument for longer-term holders. Strategy's Bitcoin Reserves vs. Debt: Is Solvency Strengthening?
- Neutral Sentiment: Market commentary noting the stock is trading at a discount versus historical levels and its BTC exposure — useful framing for value-oriented investors but complicated by Bitcoin volatility. Strategy Stock is Trading at a Discount: Should You Buy, Sell or Hold?
- Negative Sentiment: The $1B purchase was funded entirely via sales of STRC “Stretch” perpetual preferred shares (first time fully funded this way); those securities carry an ~11.5% dividend, raising fixed cash obligations and investor concern about funding costs. Strategy Funds $1B Bitcoin Purchase via Preferred Shares as Equity Premium Narrows
- Negative Sentiment: Some headlines note the stock slipped on the news in earlier trading sessions — a reminder that large BTC buys don't guarantee immediate positive equity returns, especially when funding/valuation concerns persist. Strategy (MSTR) Stock Declines Despite $1 Billion Bitcoin Purchase Pushing Holdings Near 800K BTC
- Negative Sentiment: A director (Jarrod M. Patten) sold 1,900 shares in early April — a small insider sale but one investors track for signaling; plus TD Cowen trimmed its price target, adding analyst pressure. Director Jarrod M. Patten insider sale TD Cowen Cuts Strategy Price Target
About Strategy
(
Get Free Report)
Strategy, formerly known as MicroStrategy, Incorporated (NASDAQ: MSTR) is a global provider of enterprise analytics and mobility software. The company’s flagship platform offers business intelligence, data discovery, and advanced visualizations that enable organizations to analyze large volumes of data and deliver actionable insights. In addition to traditional on-premises deployments, Strategy provides a range of cloud-based services and managed offerings that allow customers to leverage the power of its analytics tools without managing complex infrastructure.
Founded in 1989 by Michael J.
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