Strategy (NASDAQ:MSTR) Upgraded by Zacks Research to Strong-Buy Rating

Zacks Research upgraded shares of Strategy (NASDAQ:MSTR) from a hold rating to a strong-buy rating in a research note published on Tuesday morning,Zacks.com reports.

Several other equities research analysts have also recently commented on MSTR. Benchmark reiterated a “buy” rating on shares of Strategy in a research report on Monday, December 1st. 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, February 4th. Cantor Fitzgerald assumed coverage on shares of Strategy in a research report on Tuesday, January 27th. They set an “overweight” rating for the company. HC Wainwright reissued a “buy” rating on shares of Strategy in a research note on Friday, February 6th. Finally, Monness Crespi & Hardt upgraded Strategy from a “sell” rating to a “neutral” rating in a research report on Monday, November 10th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Strategy currently has an average rating of “Moderate Buy” and a consensus target price of $374.14.

Strategy Trading Down 5.1%

MSTR stock opened at $126.19 on Tuesday. The company has a quick ratio of 0.66, a current ratio of 5.62 and a debt-to-equity ratio of 0.18. Strategy has a twelve month low of $104.17 and a twelve month high of $457.22. The company has a market cap of $36.26 billion, a P/E ratio of -6.86 and a beta of 3.54. The business has a fifty day moving average of $159.41 and a 200-day moving average of $253.21.

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

Insiders Place Their Bets

In other news, EVP Wei-Ming Shao sold 2,600 shares of Strategy stock in a transaction on Wednesday, November 19th. The shares were sold at an average price of $202.02, for a total transaction of $525,252.00. Following the transaction, the executive vice president directly owned 32,726 shares of the company’s stock, valued at $6,611,306.52. This trade represents a 7.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Carl J. Rickertsen purchased 5,000 shares of the firm’s stock in a transaction dated Monday, January 12th. The stock was purchased at an average cost of $155.88 per share, with a total value of $779,400.00. Following the acquisition, the director directly owned 5,000 shares in the company, valued at $779,400. This trade represents a ? increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders have bought 7,112 shares of company stock worth $984,888 and have sold 5,243 shares worth $1,054,220. Company insiders own 8.46% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its position 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 worth $3,656,356,000 after purchasing an additional 4,178,611 shares during the period. Capital International Investors increased its stake in Strategy by 37.3% during the 4th quarter. Capital International Investors now owns 20,614,868 shares of the software maker’s stock worth $3,132,460,000 after purchasing an additional 5,600,573 shares in the last quarter. Capital Research Global Investors raised its holdings in Strategy by 66.7% during the 4th quarter. Capital Research Global Investors now owns 7,008,535 shares of the software maker’s stock worth $1,064,963,000 after buying an additional 2,803,277 shares during the period. State Street Corp raised its holdings in Strategy by 9.2% during the 3rd quarter. State Street Corp now owns 5,989,048 shares of the software maker’s stock worth $1,929,731,000 after buying an additional 504,479 shares during the period. Finally, Geode Capital Management LLC lifted its stake in Strategy by 4.7% in the fourth quarter. Geode Capital Management LLC now owns 3,911,499 shares of the software maker’s stock valued at $592,832,000 after buying an additional 175,343 shares in the last quarter. 59.84% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Management commitment to accumulation — Executive chair Michael Saylor publicly said Strategy will keep buying bitcoin “every quarter” and will not sell its holdings, signaling a clear long?term thesis that could pay off if BTC rallies. MSTR’s Michael Saylor says the company will buy ‘every quarter’ of Bitcoin ‘forever’
• Positive Sentiment: Fresh BTC purchases — Strategy disclosed an additional purchase of 1,142 BTC (~$90M), increasing its long?term bitcoin position; continued accumulation reinforces the company’s playbook of using BTC as its primary asset exposure. Strategy acquires 1,142 bitcoin as portfolio drops below cost basis
• Neutral Sentiment: Refinancing stance reduces immediate forced?sale risk but raises execution risk — Saylor said the company would “refinance the debt” rather than sell BTC if prices plunged, which mitigates imminent liquidation risk but depends on future credit markets and lenders’ willingness to roll debt. Michael Saylor downplays Strategy credit risk as bitcoin tumbles: ‘We’ll refinance the debt’
• Negative Sentiment: Direct BTC price correlation — Bitcoin falling below key levels (near $70k) is being reflected in MSTR’s stock performance because the firm’s equity moves roughly in step with the market value of its bitcoin holdings. That price sensitivity is driving investor selling. MSTR Stock Struggles as Bitcoin’s Value Dips Below $70,000
• Negative Sentiment: Financial & sentiment headwinds — Short interest has risen and analysts flag large unrealized losses, dilution/refinancing risk from convertible debt, and weak Q4 operating results (big EPS loss and negative margins), all of which increase downside risk and volatility for the equity. Why Strategy (MSTR) stock is down today Strategy Bitcoin Bet Deepens With New Equity Dilution And Volatility Risk

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.