Strategy Inc (NASDAQ:MSTR) Receives $321.86 Average PT from Analysts

Strategy Inc (NASDAQ:MSTR) has been assigned an average recommendation of “Moderate Buy” from the sixteen research firms that are presently covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation, eleven have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year target price among analysts that have covered the stock in the last year is $322.2143.

A number of analysts recently weighed in on MSTR shares. Weiss Ratings restated a “hold (c)” rating on shares of Strategy in a research note on Friday, March 27th. Benchmark decreased their price target on Strategy from $705.00 to $570.00 and set a “buy” rating on the stock in a research note on Wednesday, May 6th. Cantor Fitzgerald restated an “overweight” rating on shares of Strategy in a research note on Monday, May 11th. BTIG Research restated a “buy” rating and issued a $350.00 price target (up from $250.00) on shares of Strategy in a research note on Wednesday, May 6th. Finally, Zacks Research downgraded Strategy from a “hold” rating to a “strong sell” rating in a research note on Monday.

Strategy Trading Up 0.7%

NASDAQ:MSTR opened at $165.81 on Friday. The firm has a market cap of $58.11 billion, a P/E ratio of -4.13 and a beta of 3.59. The company has a current ratio of 6.05, a quick ratio of 6.05 and a debt-to-equity ratio of 0.22. The stock’s 50 day simple moving average is $151.81 and its 200-day simple moving average is $161.40. Strategy has a 12-month low of $104.17 and a 12-month high of $457.22.

Strategy (NASDAQ:MSTR) last released its earnings results on Tuesday, May 5th. The software maker reported ($38.25) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 during the quarter, compared to analyst estimates of $120.75 million. During the same period in the previous year, the firm posted ($16.49) EPS. The company’s revenue for the quarter was up 11.9% on a year-over-year basis. Equities analysts anticipate that Strategy will post 116.7 EPS for the current year.

Insiders Place Their Bets

In other Strategy news, CFO Andrew Kang sold 5,597 shares of the business’s stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $165.78, for a total transaction of $927,870.66. Following the sale, the chief financial officer directly owned 33,675 shares in the company, valued at approximately $5,582,641.50. The trade was a 14.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jarrod M. Patten sold 1,500 shares of the business’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $190.85, for a total value of $286,275.00. Following the sale, the director owned 28,000 shares in the company, valued at approximately $5,343,800. The trade was a 5.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 36,299 shares of company stock worth $5,635,710. 6.49% of the stock is owned by company insiders.

Institutional Trading of Strategy

Institutional investors have recently bought and sold shares of the company. Capital International Investors increased its stake in Strategy by 37.3% in the fourth quarter. Capital International Investors now owns 20,614,868 shares of the software maker’s stock valued at $3,132,460,000 after purchasing an additional 5,600,573 shares during the last quarter. Vanguard Group Inc. increased its stake in Strategy by 21.0% in 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 purchasing an additional 4,178,611 shares during the last quarter. Amundi increased its stake in Strategy by 373.7% in the fourth quarter. Amundi now owns 4,790,702 shares of the software maker’s stock valued at $727,947,000 after purchasing an additional 3,779,340 shares during the last quarter. Norges Bank acquired a new position in Strategy in the fourth quarter valued at $536,140,000. Finally, Capital Research Global Investors increased its stake in Strategy by 66.7% in the fourth quarter. Capital Research Global Investors now owns 7,008,535 shares of the software maker’s stock valued at $1,064,963,000 after purchasing an additional 2,803,277 shares during the last quarter. 59.84% of the stock is currently owned by hedge funds and other institutional investors.

Strategy News Summary

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: TD Cowen raised its price target on Strategy to $400 and kept a Buy rating, signaling strong analyst confidence in the company’s Bitcoin accumulation strategy and implying substantial upside from current levels. Article Title
• Positive Sentiment: Strategy recently bought about $2 billion in Bitcoin, lifting its holdings to 843,738 BTC, reinforcing the company’s image as the largest public Bitcoin treasury and a leveraged way to play a BTC rebound. Article Title
• Neutral Sentiment: Wall Street interest appears supportive overall, with multiple analysts still bullish on MSTR, and institutional ownership remains high. Article Title
• Neutral Sentiment: Strategy’s Q1 earnings were mixed: revenue topped estimates, but EPS missed badly, reminding investors that the stock is being valued more for its Bitcoin treasury strategy than for operating software fundamentals.
• Negative Sentiment: Bitcoin weakened to a two-week low, and crypto liquidations rose; because MSTR often trades like a leveraged Bitcoin proxy, that weakness pressures the stock. Article Title
• Negative Sentiment: Investor concern also increased after reports that Strategy may pause Bitcoin purchases and could eventually sell some BTC to help fund debt or dividend obligations, which would mark a notable shift from its “buy-only” stance. Article Title
• Negative Sentiment: Zacks Research downgraded Strategy from Hold to Strong Sell, adding to the more cautious view that the stock’s valuation and Bitcoin exposure leave it vulnerable if crypto prices keep sliding.

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.