Strategy (NASDAQ:MSTR) Shares Climb 6.8% – Time to Buy?

Strategy Inc (NASDAQ:MSTR)’s share price shot up 6.8% during trading on Wednesday. The company traded as high as $151.65 and last traded at $152.3560. Approximately 5,881,767 shares traded hands during mid-day trading, a decline of 73% from the average daily volume of 21,557,666 shares. The stock had previously closed at $142.72.

More Strategy News

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy increased its authorization to repurchase preferred stock from $2 billion to $3 billion after spending $193.1 million in one week buying STRC shares below par. The move could support the value of the remaining preferred securities and signals management is willing to deploy capital when it sees an attractive discount. Strategy Increased Its Preferred Stock Buyback to $3 Billion
• Positive Sentiment: The company reportedly added 267 Bitcoin, worth roughly $22 million, continuing its recent purchasing streak. The buying reinforces Strategy’s identity as a leveraged Bitcoin investment vehicle and gives MSTR additional upside if Bitcoin resumes its rally. Strategy Buys 267 Bitcoin and Lifts Buyback
• Positive Sentiment: Clear Street raised its price target ahead of Strategy’s October 29 earnings report, while another report cited a $211 price target and Buy rating. These revisions are improving sentiment, although the upcoming earnings release remains an important catalyst. Strategy Stock Pops
• Neutral Sentiment: Strategy spent substantially more on preferred-stock repurchases than on Bitcoin during the latest five-week period. Buybacks may improve capital efficiency, but they also indicate that management is balancing Bitcoin expansion against support for its capital structure. Strategy Spent More on Buybacks Than Bitcoin
• Negative Sentiment: Corporate Bitcoin buying slowed sharply in the third quarter, with Strategy adding a net 1,666 BTC versus 83,901 BTC in the second quarter. Analysts also warn that financing costs, dilution and weaker Bitcoin momentum could limit MSTR’s recovery. Bitcoin Rally Could Revive Treasury Buying

Analysts Set New Price Targets

Several brokerages have issued reports on MSTR. Weiss Ratings cut Strategy from a “hold (c)” rating to a “sell (d)” rating in a report on Tuesday, August 4th. Alliance Global Partners assumed coverage on shares of Strategy in a report on Tuesday, September 1st. They issued a “buy” rating and a $217.00 target price on the stock. Cantor Fitzgerald boosted their target price on Strategy from $186.00 to $208.00 and gave the company an “overweight” rating in a report on Friday, October 16th. Mizuho set a $165.00 target price on shares of Strategy in a report on Monday, August 10th. Finally, Sanford C. Bernstein reiterated an “outperform” rating and issued a $350.00 price target (down from $450.00) on shares of Strategy in a report on Wednesday, August 26th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Strategy currently has a consensus rating of “Moderate Buy” and a consensus target price of $246.13.

Strategy Trading Up 8.5%

The stock has a market cap of $59.50 billion, a P/E ratio of -1.59 and a beta of 3.56. The firm’s 50-day simple moving average is $137.49 and its 200 day simple moving average is $131.55. The company has a current ratio of 5.39, a quick ratio of 5.39 and a debt-to-equity ratio of 0.22.

Strategy (NASDAQ:MSTR) last released its earnings results on Friday, July 31st. The software maker reported ($24.45) EPS for the quarter, missing analysts’ consensus estimates of ($2.19) by ($22.26). Strategy had a negative return on equity of 74.18% and a negative net margin of 6,102.95%. The business had revenue of $122.37 million during the quarter, compared to the consensus estimate of $122.90 million. During the same quarter in the previous year, the firm earned $32.52 earnings per share. The firm’s revenue for the quarter was up 6.9% compared to the same quarter last year. As a group, equities research analysts anticipate that Strategy Inc will post -15.60 earnings per share for the current year.

Insider Activity

In related news, Director Jarrod Patten sold 2,775 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $125.33, for a total transaction of $347,790.75. Following the sale, the director directly owned 28,406 shares in the company, valued at $3,560,123.98. This represents a 8.90% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Over the last ninety days, insiders sold 14,100 shares of company stock valued at $1,815,669. Corporate insiders own 5.40% of the company’s stock.

Hedge Funds Weigh In On Strategy

Institutional investors have recently modified their holdings of the business. Sowell Financial Services LLC boosted its position in Strategy by 24.8% during the third quarter. Sowell Financial Services LLC now owns 5,564 shares of the software maker’s stock valued at $852,000 after purchasing an additional 1,106 shares during the last quarter. Quadrant Capital Group LLC bought a new stake in Strategy during the third quarter worth $357,000. Pinnacle Associates Ltd. lifted its stake in Strategy by 47.5% in the 3rd quarter. Pinnacle Associates Ltd. now owns 22,516 shares of the software maker’s stock valued at $3,447,000 after purchasing an additional 7,247 shares during the last quarter. Robeco Institutional Asset Management B.V. grew its stake in shares of Strategy by 1.8% in the third quarter. Robeco Institutional Asset Management B.V. now owns 136,225 shares of the software maker’s stock worth $20,855,000 after purchasing an additional 2,470 shares during the last quarter. Finally, Diversify Advisory Services LLC lifted its holdings in Strategy by 47.8% in the third quarter. Diversify Advisory Services LLC now owns 6,051 shares of the software maker’s stock valued at $915,000 after buying an additional 1,956 shares during the period. Institutional investors own 59.84% of the company’s stock.

About Strategy

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.