Strategy (NASDAQ:MSTR) Downgraded to Sell Rating by Wall Street Zen

Wall Street Zen downgraded shares of Strategy (NASDAQ:MSTR) from a hold rating to a sell rating in a report issued on Sunday morning.

Other equities analysts have also issued reports about the company. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Strategy in a research note on Monday, December 29th. Sanford C. Bernstein set a $450.00 price target on shares of Strategy and gave the stock an “outperform” rating in a report on Monday, December 8th. Canaccord Genuity Group set a $185.00 price objective on shares of Strategy and gave the company a “buy” rating in a research note on Wednesday. Cantor Fitzgerald initiated coverage on shares of Strategy in a research report on Tuesday, January 27th. They set an “overweight” rating for the company. Finally, BTIG Research set a $250.00 target price on shares of Strategy and gave the company a “buy” rating in a report on Friday. Eleven research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $374.14.

Strategy Price Performance

Shares of NASDAQ:MSTR opened at $134.93 on Friday. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.66 and a current ratio of 5.62. Strategy has a 52 week low of $104.17 and a 52 week high of $457.22. The firm has a market cap of $38.77 billion, a PE ratio of -7.33 and a beta of 3.54. The firm’s fifty day moving average is $162.28 and its 200-day moving average is $257.98.

Strategy (NASDAQ:MSTR) last announced its earnings results on Thursday, February 5th. The software maker reported ($42.93) earnings per share (EPS) for the quarter, missing the consensus estimate of $46.02 by ($88.95). Strategy had a negative return on equity of 8.74% and a negative net margin of 806.34%.The company had revenue of $122.99 million for the quarter, compared to the consensus estimate of $117.42 million. During the same period in the prior year, the business earned ($3.03) earnings per share. The firm’s revenue for the quarter was up 1.9% on a year-over-year basis.

Insider Activity at Strategy

In related news, Director Carl J. Rickertsen bought 5,000 shares of the business’s stock in a transaction that occurred on Monday, January 12th. The shares were acquired at an average cost of $155.88 per share, with a total value of $779,400.00. Following the completion of the purchase, the director directly owned 5,000 shares in the company, valued at $779,400. The trade was a ? increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Wei-Ming Shao sold 5,334 shares of Strategy stock in a transaction on Wednesday, November 12th. The shares were sold at an average price of $226.36, for a total transaction of $1,207,404.24. Following the completion of the sale, the executive vice president directly owned 32,726 shares of the company’s stock, valued at approximately $7,407,857.36. This trade represents a 14.01% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have purchased 7,112 shares of company stock worth $984,888 and have sold 13,177 shares worth $2,843,166. 8.46% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in MSTR. Vanguard Group Inc. increased its holdings in shares of Strategy by 21.0% during the fourth quarter. Vanguard Group Inc. now owns 24,062,886 shares of the software maker’s stock valued at $3,656,356,000 after acquiring an additional 4,178,611 shares in the last quarter. Capital International Investors grew its position in Strategy by 2.6% in the 3rd quarter. Capital International Investors now owns 15,014,295 shares of the software maker’s stock valued at $4,837,778,000 after purchasing an additional 383,207 shares during the period. State Street Corp grew its position in Strategy by 9.2% in the 3rd quarter. State Street Corp now owns 5,989,048 shares of the software maker’s stock valued at $1,929,731,000 after purchasing an additional 504,479 shares during the period. Capital Research Global Investors increased its stake in Strategy by 33.6% during the 3rd quarter. Capital Research Global Investors now owns 4,205,258 shares of the software maker’s stock valued at $1,354,982,000 after purchasing an additional 1,057,804 shares in the last quarter. Finally, Norges Bank acquired a new position in Strategy during the second quarter worth $1,203,062,000. 59.84% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Bitcoin recovery and renewed analyst support lifted buying interest — TD Cowen kept a Buy rating and its $440 target, and headlines tied MSTR’s move to a BTC bounce. ‘No Reasonable Scenario’ Forces Strategy To Sell Bitcoin As $440 Target Stands: TD Cowen
• Positive Sentiment: Underlying software/subscriptions revenue beat consensus — Q4 revenue rose ~1.9% and subscription/license growth was noted, a constructive datapoint for the non?Bitcoin business. Strategy Q4 Earnings Miss Estimates, Revenues Increase Y/Y (Zacks)
• Positive Sentiment: Balance?sheet size and liquidity signals — company now reports ~713,502 BTC and has raised large amounts of capital, which some investors view as financial firepower to ride out volatility. Strategy Inc Reports 713,502 BTC Holdings Amid $12.4 Billion Quarterly Loss (Blockonomi)
• Neutral Sentiment: Analyst views remain split — some firms cut price targets (Canaccord trimmed its target earlier) but several bullish analysts still defend the long?term thesis, leaving consensus divergent. Strategy Stock: Analyst Slashes Target 60% Yet Keeps Buy Rating
• Neutral Sentiment: Company is tweaking shareholder frameworks (dividend rules, capital plans) announced alongside results — these are structural but their market effect depends on execution. Strategy Updates Dividend Framework and Highlights Bitcoin Expansion
• Negative Sentiment: Huge Q4 unrealized Bitcoin losses produced a blockbuster accounting hit (reported ~ $12–17B in Q4), driving a wide EPS miss and renewed fear of downside when BTC falls. That remains the primary negative for the equity. Saylor?led Strategy’s quarterly losses widen as bitcoin faces another reckoning (Reuters)
• Negative Sentiment: Leverage/liquidity risk from debt?funded BTC purchases and vocal short sellers/critics raise the chance of forced sells or margin stress if Bitcoin moves sharply lower again. Market commentary highlights this as an ongoing tail risk. Strategy Earnings Reveal the Real Risk Behind MSTR Stock (MarketBeat)

Strategy Company Profile

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.