Strategy (NASDAQ:MSTR) Issues Earnings Results, Beats Expectations By $24.56 EPS

Key Points

• Strategy reported quarterly EPS of $44.75, beating the $20.19 consensus by $24.56. Revenue of $125.43 million came in slightly below analysts’ $127.76 million estimate, while the EPS result was largely driven by a $19.5 billion gain on Bitcoin holdings.
• Shares fell $3.54 to $141.62 after the results, with the stock trading well below its 12-month high of $276.32. Strategy continues to show extreme volatility, reflected in its beta of 3.56 and negative net margin.
• Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $251.21. Shareholders also approved daily dividends for preferred securities, beginning with STRC in November and other series in January 2027.

Strategy (NASDAQ:MSTR - Get Free Report) released its earnings results on Thursday. The software maker reported $44.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $20.19 by $24.56, FiscalAI reports. Strategy had a negative return on equity of 74.18% and a negative net margin of 6,102.95%. The company had revenue of $125.43 million for the quarter, compared to analyst estimates of $127.76 million.

Strategy Stock Performance

MSTR traded down $3.54 on Thursday, hitting $141.62. The company's stock had a trading volume of 12,735,228 shares, compared to its average volume of 21,457,156. Strategy has a 12 month low of $81.81 and a 12 month high of $276.32. The company's 50 day simple moving average is $142.56 and its 200-day simple moving average is $134.75. The company has a quick ratio of 5.39, a current ratio of 5.39 and a debt-to-equity ratio of 0.22. The firm has a market cap of $54.41 billion, a P/E ratio of -1.46 and a beta of 3.56.

Analyst Upgrades and Downgrades

MSTR has been the topic of a number of research reports. BTIG Research reaffirmed a "buy" rating and set a $250.00 target price on shares of Strategy in a research note on Friday, July 31st. Citigroup reiterated 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. Sanford C. Bernstein reiterated an "outperform" rating and set a $350.00 target price (down from $450.00) on shares of Strategy in a research report on Wednesday, August 26th. Alliance Global Partners assumed coverage on Strategy in a research report on Tuesday, September 1st. They issued a "buy" rating and a $217.00 price target on the stock. Finally, B. Riley Financial upped their price objective on shares of Strategy from $175.00 to $195.00 and gave the company a "buy" rating in a research note on Tuesday, September 22nd. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $251.21.

Strategy News Roundup

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy reported $44.75 in GAAP EPS, far above the $20.19 consensus estimate, largely reflecting a $19.5 billion profit from the appreciation of its Bitcoin holdings. Strategy Bitcoin per share earnings reaction
• Positive Sentiment: Shareholders approved daily dividend payments for Strategy’s preferred securities. STRC is expected to begin daily payments in November, with STRF, STRK and STRD scheduled to follow in January 2027. The change could improve liquidity and investor demand for the preferred shares. Strategy daily dividends

Insiders Place Their Bets

In other news, Director Jarrod Patten sold 2,775 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $125.33, for a total value of $347,790.75. Following the sale, the director directly owned 28,406 shares of the company's stock, valued at approximately $3,560,123.98. This represents a 8.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Over the last ninety days, insiders sold 10,200 shares of company stock worth $1,443,356. 5.40% of the stock is owned by insiders.

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.

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