Allstate Corp Raises Stake in Strategy Inc $MSTR

Key Points

• Allstate Corp more than doubled its position in Strategy Inc. during the fourth quarter, boosting its stake by 104.5% to 19,613 shares valued at about $2.98 million.
• Institutional interest in MSTR remains strong overall, with hedge funds and other investors owning 59.84% of the stock. Several firms added to or initiated positions in the company during the quarter.
• Strategy’s latest earnings showed a sharp EPS miss of $38.25 versus expectations of -$0.86, even though revenue came in slightly above estimates and rose 11.9% year over year. The stock was also down 3.6% in the session cited.

Allstate Corp increased its stake in Strategy Inc (NASDAQ:MSTR - Free Report) by 104.5% during the fourth quarter, according to its most recent filing with the SEC. The fund owned 19,613 shares of the software maker's stock after buying an additional 10,023 shares during the quarter. Allstate Corp's holdings in Strategy were worth $2,980,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in MSTR. Legal & General Group Plc lifted its holdings in Strategy by 9.3% during the fourth quarter. Legal & General Group Plc now owns 1,371,947 shares of the software maker's stock valued at $208,467,000 after purchasing an additional 116,177 shares during the last quarter. Swedbank AB lifted its holdings in Strategy by 0.4% during the fourth quarter. Swedbank AB now owns 79,460 shares of the software maker's stock valued at $12,074,000 after purchasing an additional 316 shares during the last quarter. Prospera Financial Services Inc lifted its holdings in Strategy by 47.6% during the fourth quarter. Prospera Financial Services Inc now owns 13,538 shares of the software maker's stock valued at $2,057,000 after purchasing an additional 4,368 shares during the last quarter. Boundless Plain Holdings Ltd purchased a new stake in Strategy during the fourth quarter valued at about $4,558,000. Finally, Carroll Advisory Group LLC purchased a new stake in Strategy during the fourth quarter valued at about $477,000. 59.84% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, CEO Phong Le sold 3,299 shares of the company's stock in a transaction that occurred on Tuesday, March 24th. The shares were sold at an average price of $138.33, for a total value of $456,350.67. Following the transaction, the chief executive officer directly owned 22,923 shares in the company, valued at approximately $3,170,938.59. This represents a 12.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Jarrod M. Patten sold 3,400 shares of the company's stock in a transaction that occurred on Monday, April 13th. The stock was sold at an average price of $130.65, for a total transaction of $444,210.00. Following the completion of the transaction, the director owned 28,000 shares in the company, valued at approximately $3,658,200. This trade represents a 10.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 41,549 shares of company stock worth $6,510,803. Insiders own 6.49% of the company's stock.

Strategy Stock Down 3.6%

MSTR stock opened at $154.20 on Thursday. 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 company's 50 day moving average is $153.76 and its 200 day moving average is $158.06. The stock has a market cap of $54.04 billion, a price-to-earnings ratio of -3.84 and a beta of 3.59. Strategy Inc has a 1-year low of $104.17 and a 1-year high of $457.22.

Strategy (NASDAQ:MSTR - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The software maker reported ($38.25) earnings per share for the quarter, missing the consensus estimate of ($0.86) by ($37.39). The company had revenue of $124.30 million during the quarter, compared to the consensus estimate of $120.75 million. Strategy had a negative return on equity of 26.97% and a negative net margin of 2,482.01%.The firm's revenue for the quarter was up 11.9% on a year-over-year basis. During the same quarter last year, the company posted ($16.49) earnings per share. Sell-side analysts predict that Strategy Inc will post 116.7 EPS for the current fiscal year.

Strategy News Roundup

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy retired $1.5 billion of convertible debt, using about $1.38 billion of cash to reduce leverage and strengthen its balance sheet. Supporters view the move as improving the company’s credit profile and reducing near-term financing risk. Article Title
• Positive Sentiment: Chair Michael Saylor said Strategy could continue accumulating Bitcoin over the long term, reinforcing the company’s core “Bitcoin treasury” identity and keeping the stock tied to bullish crypto sentiment. Article Title
• Neutral Sentiment: Bitcoin itself weakened and traded around $75,000, which matters because MSTR’s valuation is heavily leveraged to BTC price moves. That creates a direct headwind even if the company’s balance sheet improves. Article Title
• Neutral Sentiment: Analysts and market commentary continue to frame Strategy as a high-risk Bitcoin proxy rather than a software company, keeping investor focus on treasury moves, not operating fundamentals. Article Title
• Negative Sentiment: A report said Strategy’s touted Bitcoin-per-share improvement from the debt retirement was only theoretical, while critics argued the company is overstating the benefit. That kind of pushback can weigh on sentiment and raise questions about disclosure quality. Article Title
• Negative Sentiment: Peter Schiff and other skeptics criticized the debt repurchase, suggesting Strategy may be pressured to sell assets or cash to manage obligations. That adds to concerns about liquidity and the sustainability of the company’s Bitcoin-heavy strategy. Article Title

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on MSTR. BTIG Research reiterated a "buy" rating and set a $350.00 price target (up from $250.00) on shares of Strategy in a research report on Wednesday, May 6th. HC Wainwright reiterated a "buy" rating on shares of Strategy in a research report on Friday, February 6th. Zacks Research cut Strategy from a "hold" rating to a "strong sell" rating in a research report on Monday, May 18th. Cantor Fitzgerald reiterated an "overweight" rating on shares of Strategy in a research report on Monday, May 11th. Finally, Benchmark decreased their price target on Strategy from $705.00 to $570.00 and set a "buy" rating on the stock in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $322.21.

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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