Strategy (NASDAQ:MSTR) Raised to Sell at Wall Street Zen

Strategy (NASDAQ:MSTR) was upgraded by research analysts at Wall Street Zen from a “strong sell” rating to a “sell” rating in a research report issued on Sunday.

Other analysts have also recently issued research reports about the stock. HC Wainwright set a $325.00 price target on shares of Strategy in a research report on Monday, August 3rd. Benchmark reissued a “buy” rating and issued a $435.00 price objective (down from $570.00) on shares of Strategy in a research report on Monday, July 27th. Monness Crespi & Hardt reissued a “neutral” rating on shares of Strategy in a research note on Tuesday, June 2nd. B. Riley Financial cut their target price on Strategy from $215.00 to $155.00 and set a “buy” rating on the stock in a research report on Monday, August 3rd. Finally, Mizuho set a $165.00 target price on Strategy in a research note on Monday, August 10th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $239.81.

Strategy Trading Up 5.0%

NASDAQ:MSTR opened at $97.68 on Friday. The firm’s fifty day moving average is $100.13 and its 200-day moving average is $129.36. The company has a debt-to-equity ratio of 0.22, a quick ratio of 5.39 and a current ratio of 5.39. Strategy has a 52 week low of $81.81 and a 52 week high of $367.57. The firm has a market cap of $37.53 billion, a P/E ratio of -1.00 and a beta of 3.54.

Strategy (NASDAQ:MSTR) last posted its quarterly earnings data on Friday, July 31st. The software maker reported ($24.45) earnings per share for the quarter, missing the consensus estimate of ($2.19) by ($22.26). The firm had revenue of $122.37 million for the quarter, compared to analyst estimates of $122.90 million. Strategy had a negative return on equity of 74.18% and a negative net margin of 6,102.95%.The company’s quarterly revenue was up 6.9% compared to the same quarter last year. During the same quarter last year, the company earned $32.52 earnings per share. Equities analysts expect that Strategy will post -23.76 earnings per share for the current year.

Insider Buying and Selling

In other Strategy news, CEO Phong Le sold 93,738 shares of the firm’s stock in a transaction on Friday, June 5th. The shares were sold at an average price of $118.73, for a total value of $11,129,512.74. Following the completion of the sale, the chief executive officer directly owned 119,925 shares in the company, valued at approximately $14,238,695.25. This trade represents a 43.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jarrod M. Patten sold 15,050 shares of Strategy stock in a transaction on Friday, May 29th. The shares were sold at an average price of $154.94, for a total transaction of $2,331,847.00. Following the completion of the sale, the director directly owned 28,000 shares of the company’s stock, valued at approximately $4,338,320. This trade represents a 34.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have purchased 11,166 shares of company stock valued at $1,014,265 and have sold 167,575 shares valued at $20,715,660. 6.49% of the stock is owned by insiders.

Institutional Trading of Strategy

Several large investors have recently made changes to their positions in the company. Public Employees Retirement System of Ohio bought a new position in Strategy in the second quarter worth approximately $10,602,000. Sound Financial Strategies Group LLC bought a new stake in shares of Strategy during the second quarter valued at approximately $1,687,000. Abound Wealth Management increased its holdings in shares of Strategy by 41.5% during the second quarter. Abound Wealth Management now owns 1,057 shares of the software maker’s stock valued at $92,000 after acquiring an additional 310 shares in the last quarter. Handelsbanken Fonder AB raised its position in shares of Strategy by 28.8% during the second quarter. Handelsbanken Fonder AB now owns 106,522 shares of the software maker’s stock worth $9,260,000 after purchasing an additional 23,829 shares during the period. Finally, Wealthcare Advisory Partners LLC raised its position in shares of Strategy by 4.4% during the second quarter. Wealthcare Advisory Partners LLC now owns 7,857 shares of the software maker’s stock worth $683,000 after purchasing an additional 329 shares during the period. 59.84% of the stock is currently owned by institutional investors and hedge funds.

More Strategy News

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy sold approximately 3.46 million MSTR shares for $333.7 million in net proceeds between Aug. 10 and Aug. 16. The funds helped support its cash reserve, preferred-stock dividends and repurchases of approximately $132.2 million of STRC preferred shares. Strategy Sells MSTR Shares, Keeps Bitcoin Holdings Flat
• Positive Sentiment: The company’s U.S. dollar reserve rose to approximately $4.8 billion, improving its ability to fund preferred-stock obligations and operate through Bitcoin-market weakness. Its Bitcoin holdings remained at 840,447 BTC. Strategy Holds Bitcoin at 840,447 BTC as Cash Reserve Hits $4.8B
• Positive Sentiment: CEO Phong Le highlighted potential autumn catalysts for Bitcoin, including clearer regulation, greater bank participation and expanding digital-asset products. A Bitcoin recovery would likely benefit MSTR disproportionately because of its large holdings and high stock beta. Strategy CEO Sees 7 Fall Catalysts Bringing Bitcoin More Life
• Neutral Sentiment: Strategy did not buy or sell Bitcoin for a seventh consecutive week. The pause preserves cash and reduces near-term financing pressure, but it also limits the company’s primary growth catalyst while Bitcoin remains weak. Strategy’s Bitcoin Drought Hits 7 Weeks
• Negative Sentiment: The large common-stock issuance is dilutive to existing shareholders and signals that Strategy is currently using equity sales to support its preferred-stock structure rather than adding Bitcoin.
• Negative Sentiment: MSCI is considering removing Strategy from global equity indexes by treating it more like a Bitcoin investment vehicle than an operating technology company. Exclusion could prompt forced selling by index-tracking funds. Strategy Could Be Dropped From Global Indexes
• Negative Sentiment: Strategy has materially underperformed Bitcoin and remains well below its 52-week high. Weak cryptocurrency prices, prior Bitcoin sales and soft quarterly results continue to challenge the company’s premium valuation.

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.