Key Points
- Strategy director Jarrod Patten sold 1,500 shares on May 14 at an average price of $190.85, for proceeds of $286,275. After the sale, he still owned 28,000 shares.
- Shares of MSTR were down 6.1% in the session, with the stock opening at $166.63. The company remains highly volatile, with a beta of 3.59 and a wide 12-month trading range.
- Analysts remain mostly constructive on Strategy despite recent results, with one Strong Buy, 11 Buy, and four Hold ratings. The consensus target price is $321.86, even as the company posted a much larger-than-expected quarterly loss.
Strategy Inc (NASDAQ:MSTR - Get Free Report) Director Jarrod Patten sold 1,500 shares of Strategy stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $190.85, for a total value of $286,275.00. Following the sale, the director directly owned 28,000 shares in the company, valued at $5,343,800. This trade represents a 5.08% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this link.
Strategy Stock Down 6.1%
Shares of MSTR opened at $166.63 on Tuesday. The business's 50 day moving average is $150.65 and its 200 day moving average is $162.81. The company has a market capitalization of $58.40 billion, a PE ratio of -4.15 and a beta of 3.59. Strategy Inc has a 12-month low of $104.17 and a 12-month high of $457.22. The company has a current ratio of 6.05, a quick ratio of 6.05 and a debt-to-equity ratio of 0.22.
Strategy (NASDAQ:MSTR - Get Free Report) last issued its earnings results on Tuesday, May 5th. The software maker reported ($38.25) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.86) by ($37.39). The business had revenue of $124.30 million for the quarter, compared to the consensus estimate of $120.75 million. Strategy had a negative net margin of 2,482.01% and a negative return on equity of 26.97%. The firm's revenue for the quarter was up 11.9% compared to the same quarter last year. During the same period last year, the business posted ($16.49) EPS. Research analysts expect that Strategy Inc will post 116.7 earnings per share for the current fiscal year.
Analyst Ratings Changes
Several analysts recently issued reports on MSTR shares. Canaccord Genuity Group set a $224.00 target price on Strategy and gave the company a "buy" rating in a research note on Thursday, May 7th. HC Wainwright reissued a "buy" rating on shares of Strategy in a research note on Friday, February 6th. B. Riley Financial lifted their target price on Strategy from $200.00 to $215.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Zacks Research downgraded Strategy from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 7th. Finally, Cantor Fitzgerald reissued an "overweight" rating on shares of Strategy in a research note on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $321.86.
Read Our Latest Analysis on Strategy
Key Stories Impacting Strategy
Here are the key news stories impacting Strategy this week:
- Positive Sentiment: Strategy continued expanding its Bitcoin position, buying 24,869 BTC for about $2.01 billion and bringing total holdings to 843,738 BTC, which keeps the company at the center of the corporate Bitcoin trade. Article Title
- Positive Sentiment: Shares may also be getting support from ongoing investor interest and analyst optimism tied to the company’s aggressive Bitcoin accumulation and balance-sheet strategy. Article Title
- Neutral Sentiment: Strategy is funding much of the Bitcoin buying through its STRC preferred stock, which appears to have strong trading demand, but also adds complexity to the capital structure. Article Title
- Neutral Sentiment: Michael Saylor has also floated the idea that Strategy could eventually sell some Bitcoin to meet dividend or debt obligations, a notable shift from the company’s earlier “never sell” stance. Article Title
- Negative Sentiment: Bitcoin itself weakened sharply and crypto liquidations rose, which weighs on Strategy because the stock trades as a leveraged proxy for BTC and is highly sensitive to swings in the coin’s price. Article Title
- Negative Sentiment: Some coverage framed the latest Bitcoin buying as adding balance-sheet risk, since the company is increasingly willing to use holdings to support dividend and debt payments. Article Title
Institutional Trading of Strategy
A number of large investors have recently added to or reduced their stakes in the company. Federated Hermes Inc. purchased a new position in shares of Strategy in the 2nd quarter worth approximately $396,000. Cary Street Partners Financial LLC purchased a new position in shares of Strategy in the 2nd quarter worth approximately $202,000. Sei Investments Co. boosted its holdings in shares of Strategy by 136.0% in the 2nd quarter. Sei Investments Co. now owns 39,905 shares of the software maker's stock worth $16,125,000 after purchasing an additional 22,999 shares during the period. The Manufacturers Life Insurance Company boosted its holdings in shares of Strategy by 59.4% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 19,215 shares of the software maker's stock worth $7,767,000 after purchasing an additional 7,158 shares during the period. Finally, Peapack Gladstone Financial Corp boosted its holdings in shares of Strategy by 22.0% in the 2nd quarter. Peapack Gladstone Financial Corp now owns 3,055 shares of the software maker's stock worth $1,235,000 after purchasing an additional 550 shares during the period. Institutional investors own 59.84% of the company's stock.
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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