Key Points
- Strategy director Jarrod Patten sold 1,500 shares on June 15 at an average price of $133.97, totaling about $200,955. After the sale, he still owned 28,406 shares, a 5.02% reduction in his position.
- MSTR shares were down 5.1% and opened at $116.56, well below both its 50-day and 200-day moving averages. The stock remains highly volatile, with a beta of 3.49 and a wide 52-week range of $104.17 to $457.22.
- Strategy’s latest earnings showed a much larger-than-expected loss, with EPS of ($38.25) versus a consensus estimate of ($0.86), though revenue came in slightly above forecasts at $124.3 million. Analysts still broadly rate the stock a Moderate Buy, with a consensus price target of $313.93.
Strategy Inc (NASDAQ:MSTR - Get Free Report) Director Jarrod Patten sold 1,500 shares of the firm's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $133.97, for a total transaction of $200,955.00. Following the completion of the transaction, the director directly owned 28,406 shares in the company, valued at $3,805,551.82. This represents a 5.02% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink.
Strategy Stock Down 5.1%
MSTR stock opened at $116.56 on Thursday. The company has a debt-to-equity ratio of 0.22, a current ratio of 6.05 and a quick ratio of 6.05. Strategy Inc has a 52-week low of $104.17 and a 52-week high of $457.22. The company's 50 day simple moving average is $153.23 and its 200-day simple moving average is $150.76. The firm has a market capitalization of $40.85 billion, a P/E ratio of -2.90 and a beta of 3.49.
Strategy (NASDAQ:MSTR - Get Free Report) last released its earnings results on Tuesday, May 5th. The software maker reported ($38.25) EPS for the quarter, missing the consensus estimate of ($0.86) by ($37.39). Strategy had a negative net margin of 2,482.01% and a negative return on equity of 26.97%. The company had revenue of $124.30 million for the quarter, compared to analyst estimates of $120.75 million. During the same quarter in the previous year, the company earned ($16.49) earnings per share. Strategy's revenue for the quarter was up 11.9% compared to the same quarter last year. As a group, equities research analysts anticipate that Strategy Inc will post 116.7 EPS for the current year.
Institutional Investors Weigh In On Strategy
Large investors have recently added to or reduced their stakes in the business. Schroder Investment Management Group raised its stake in Strategy by 21.0% during the 3rd quarter. Schroder Investment Management Group now owns 118,478 shares of the software maker's stock worth $38,175,000 after acquiring an additional 20,536 shares in the last quarter. Van ECK Associates Corp raised its position in shares of Strategy by 46.1% in the third quarter. Van ECK Associates Corp now owns 204,506 shares of the software maker's stock valued at $65,894,000 after buying an additional 64,482 shares during the last quarter. Daviman Financial LLC purchased a new position in Strategy during the fourth quarter worth approximately $1,013,000. Harvest Portfolios Group Inc. increased its holdings in Strategy by 119.0% in the 3rd quarter. Harvest Portfolios Group Inc. now owns 1,550,520 shares of the software maker's stock valued at $499,593,000 after purchasing an additional 842,480 shares in the last quarter. Finally, Legal & General Group Plc boosted its stake in shares of Strategy by 7.5% in the third quarter. Legal & General Group Plc now owns 1,255,770 shares of the software maker's stock valued at $404,622,000 after purchasing an additional 87,333 shares during the period. 59.84% of the stock is owned by hedge funds and other institutional investors.
Analyst Ratings Changes
Several research analysts have recently weighed in on the company. B. Riley Financial lifted their price objective on Strategy from $200.00 to $215.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Canaccord Genuity Group set a $163.00 price objective on Strategy and gave the company a "buy" rating in a research report on Wednesday, June 3rd. Zacks Research cut Strategy from a "hold" rating to a "strong sell" rating in a research note on Monday, May 18th. TD Cowen raised their price objective on Strategy from $395.00 to $400.00 and gave the stock a "buy" rating in a research note on Tuesday, May 19th. Finally, BTIG Research restated a "buy" rating and issued a $350.00 target price (up from $250.00) on shares of Strategy in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Strategy presently has a consensus rating of "Moderate Buy" and a consensus price target of $313.93.
View Our Latest Report on MSTR
More Strategy News
Here are the key news stories impacting Strategy this week:
- Negative Sentiment: Strategy’s perpetual preferred shares, STRC, fell to a historic low, renewing fears that the company’s Bitcoin buying program is becoming harder to fund without adding more dilution or pressure on dividend obligations. Article Title
- Negative Sentiment: Crypto market commentary said Strategy’s STRC weakness is reflecting growing investor concern about monthly dividend commitments and share dilution, which could weigh on MSTR’s ability to keep funding Bitcoin purchases at the current pace. Article Title
- Negative Sentiment: Another report said traders are worried Strategy may eventually need to sell Bitcoin or slow buying if its cash runway for dividend payments tightens, adding to pressure on the stock. Article Title
- Negative Sentiment: Recent commentary from analysts and crypto media also highlighted that Strategy’s latest Bitcoin purchases may be viewed as less sustainable, with concerns that share sales are no longer accretive in the same way as before. Article Title
- Neutral Sentiment: Separately, Executive Chairman Michael Saylor continued to defend Strategy’s Bitcoin strategy publicly, arguing the company is a “shock absorber” for Bitcoin rather than a systemic risk, but this has not offset the market’s financing worries. Article Title
- Neutral Sentiment: Strategy also disclosed that EVP Thomas C. Chow bought 111 shares, a small insider purchase that may offer some confidence but is unlikely to move sentiment on its own. Article Title
Strategy Company Profile
(
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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