Strategy Inc (NASDAQ:MSTR) Stock Has Consensus Target Price of $258.94

Key Points

• Analysts are moderately bullish on Strategy: Eighteen analysts give the stock a consensus “Moderate Buy” rating, with an average 12-month price target of $258.94.
• Institutional ownership remains substantial: Hedge funds and other institutional investors own 59.84% of the company, while insiders own 5.40%; insiders sold approximately $1.39 million of shares over the past 90 days.
• Strategy’s performance remains closely tied to Bitcoin: The company holds 848,250 BTC, but its latest quarterly loss significantly exceeded expectations, and its smaller recent Bitcoin purchase and reliance on share issuance highlight financing and dilution risks.

Strategy Inc (NASDAQ:MSTR - Get Free Report) has been given an average recommendation of "Moderate Buy" by the eighteen analysts that are currently covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, two have issued a hold rating, thirteen have given a buy rating and two have assigned a strong buy rating to the company. The average 1-year price target among analysts that have covered the stock in the last year is $258.94.

Several equities analysts have issued reports on the company. Citigroup reissued a "buy" rating and issued a $240.00 price target (up from $136.00) on shares of Strategy in a research note on Friday, October 2nd. Credit Suisse Group set a $250.00 price target on Strategy in a report on Tuesday, June 30th. Zacks Research raised shares of Strategy from a "strong sell" rating to a "hold" rating in a research report on Monday, September 21st. B. Riley Financial raised their price objective on shares of Strategy from $175.00 to $195.00 and gave the stock a "buy" rating in a research report on Tuesday, September 22nd. Finally, UBS Group reiterated a "buy" rating on shares of Strategy in a research note on Friday, July 31st.

Insider Buying and Selling

In related news, Director Jarrod Patten sold 475 shares of Strategy stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $171.00, for a total value of $81,225.00. Following the completion of the sale, the director owned 28,406 shares of the company's stock, valued at approximately $4,857,426. This trade represents a 1.64% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders sold a total of 11,350 shares of company stock valued at $1,393,439 over the last ninety days. Company insiders own 5.40% of the company's stock.

Hedge Funds Weigh In On Strategy

A number of hedge funds have recently bought and sold shares of the company. State Street Corp increased its holdings in Strategy by 7.2% during the second quarter. State Street Corp now owns 7,527,561 shares of the software maker's stock worth $654,371,000 after buying an additional 506,635 shares during the last quarter. Bank of America Corp DE raised its position in Strategy by 3.1% in the first quarter. Bank of America Corp DE now owns 3,965,680 shares of the software maker's stock worth $494,917,000 after acquiring an additional 117,374 shares during the period. Renaissance Technologies LLC boosted its stake in Strategy by 122.6% in the first quarter. Renaissance Technologies LLC now owns 2,130,881 shares of the software maker's stock valued at $265,934,000 after acquiring an additional 1,173,549 shares during the last quarter. Swiss National Bank boosted its stake in Strategy by 7.1% in the first quarter. Swiss National Bank now owns 766,100 shares of the software maker's stock valued at $95,609,000 after acquiring an additional 50,720 shares during the last quarter. Finally, First Trust Advisors LP boosted its stake in Strategy by 24.3% in the first quarter. First Trust Advisors LP now owns 755,890 shares of the software maker's stock valued at $94,335,000 after acquiring an additional 147,562 shares during the last quarter. 59.84% of the stock is owned by hedge funds and other institutional investors.

Strategy Stock Down 1.1%

Shares of NASDAQ MSTR opened at $152.68 on Tuesday. The company has a 50 day simple moving average of $131.97 and a 200 day simple moving average of $130.88. The firm has a market cap of $58.66 billion, a PE ratio of -1.57 and a beta of 3.56. Strategy has a 1 year low of $81.81 and a 1 year high of $315.95. The company has a debt-to-equity ratio of 0.22, a current ratio of 5.39 and a quick ratio of 5.39.

Strategy (NASDAQ:MSTR - Get Free Report) last issued its quarterly earnings data on Friday, July 31st. The software maker reported ($24.45) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($2.19) by ($22.26). The company had revenue of $122.37 million for the quarter, compared to the consensus estimate of $122.90 million. Strategy had a negative return on equity of 74.18% and a negative net margin of 6,102.95%. Strategy's revenue was up 6.9% compared to the same quarter last year. During the same quarter last year, the business earned $32.52 earnings per share. On average, research analysts forecast that Strategy will post -23.74 EPS for the current year.

Key Strategy News

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy acquired 250 Bitcoin for approximately $21.5 million at an average cost of $86,194 per coin, increasing its holdings to 848,250 BTC. The company’s total Bitcoin investment is approximately $64 billion, with an average cost of $75,444 per coin. Strategy buys Bitcoin and repurchases preferred stock
• Positive Sentiment: The company repurchased approximately $192.4 million of STRC preferred stock, retiring 1.93 million shares. Management still has roughly $354.8 million available under the preferred-stock buyback authorization and $1 billion authorized for common-stock repurchases, which could support capital-structure management. Strategy repurchases STRC preferred stock
• Neutral Sentiment: Executive Chairman Michael Saylor signaled that additional Bitcoin purchases remain part of Strategy’s strategy. The latest purchase follows an earlier acquisition of 334 BTC, but the two purchases cover different reporting periods. Saylor hints at more Bitcoin buying
• Negative Sentiment: The 250-Bitcoin purchase was Strategy’s smallest reported acquisition of the year. Investors interpreted the reduced buying pace as a possible sign of tighter capital availability, particularly because the company spent nearly nine times as much on the STRC repurchase as on Bitcoin. Strategy stock slips on smaller Bitcoin purchase
• Negative Sentiment: Strategy sold 125,183 common shares through its at-the-market program to raise approximately $21 million for Bitcoin purchases. Although this supports accumulation, issuing shares can dilute existing holders and reinforces concerns about the cost of financing the company’s Bitcoin strategy. Strategy shareholders face dilution
• Negative Sentiment: MSTR remains highly sensitive to Bitcoin’s price, which retreated during the session. The company’s 12% STRC dividend rate also highlights the high cost of preferred financing and adds pressure if Bitcoin appreciation slows.

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.

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