Amundi Reduces Stake in Strategy Inc $MSTR

Key Points

• Amundi cut its Strategy stake by 88.9% in the first quarter, selling 4.26 million shares and retaining 531,986 shares worth approximately $66.4 million. Institutional investors collectively own 59.84% of MSTR.
• Strategy reported a quarterly loss of $24.45 per share, far below the $2.19 consensus estimate, while revenue reached $122.37 million, up 6.9% year over year. The stock opened at $93.28, well below its 52-week high of $414.36.
• Analysts maintain a generally positive view, with a “Moderate Buy” consensus and an average price target of $257.88, although targets were recently reduced. Company insiders have been net sellers over the past 90 days, selling $23.1 million of shares versus $1.0 million purchased.

Amundi lessened its holdings in shares of Strategy Inc (NASDAQ:MSTR - Free Report) by 88.9% during the 1st quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 531,986 shares of the software maker's stock after selling 4,258,716 shares during the period. Amundi owned 0.15% of Strategy worth $66,392,000 at the end of the most recent reporting period.

Other institutional investors have also recently added to or reduced their stakes in the company. Binnacle Investments Inc lifted its position in shares of Strategy by 492.9% during the 2nd quarter. Binnacle Investments Inc now owns 83 shares of the software maker's stock worth $34,000 after buying an additional 69 shares during the last quarter. Wealth Watch Advisors INC acquired a new position in shares of Strategy in the 3rd quarter valued at $44,000. Fideuram Asset Management Ireland dac purchased a new position in shares of Strategy in the 4th quarter valued at $25,000. Dogwood Wealth Management LLC grew its position in shares of Strategy by 280.0% in the 4th quarter. Dogwood Wealth Management LLC now owns 190 shares of the software maker's stock valued at $29,000 after buying an additional 140 shares during the last quarter. Finally, Darwin Wealth Management LLC acquired a new stake in Strategy during the 2nd quarter worth $77,000. Hedge funds and other institutional investors own 59.84% of the company's stock.

Strategy Price Performance

Shares of NASDAQ:MSTR opened at $93.28 on Friday. Strategy Inc has a one year low of $81.81 and a one year high of $414.36. The stock has a market capitalization of $32.69 billion, a price-to-earnings ratio of -0.96 and a beta of 3.54. The company has a 50-day simple moving average of $110.34 and a 200-day simple moving average of $135.03. The company has a debt-to-equity ratio of 0.22, a quick ratio of 6.05 and a current ratio of 6.05.

Strategy (NASDAQ:MSTR - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. 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 analysts' expectations of $122.90 million. Strategy had a negative return on equity of 68.55% and a negative net margin of 6,102.95%.The business's quarterly revenue was up 6.9% compared to the same quarter last year. During the same period in the prior year, the business earned $32.52 EPS. On average, analysts predict that Strategy Inc will post 57.47 EPS for the current year.

Analyst Ratings Changes

Several research firms have issued reports on MSTR. Benchmark restated a "buy" rating and issued a $435.00 price objective (down from $570.00) on shares of Strategy in a research note on Monday, July 27th. UBS Group reiterated a "buy" rating on shares of Strategy in a research report on Friday. Monness Crespi & Hardt reissued a "neutral" rating on shares of Strategy in a report on Tuesday, June 2nd. TD Cowen decreased their target price on Strategy from $400.00 to $260.00 and set a "buy" rating for the company in a research report on Tuesday, June 30th. Finally, Zacks Research upgraded Strategy from a "strong sell" rating to a "hold" rating in a research note on Monday, July 6th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $257.88.

Insider Buying and Selling at Strategy

In other news, Director Jarrod M. Patten sold 15,050 shares of the business's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $154.94, for a total value of $2,331,847.00. Following the transaction, the director owned 28,000 shares of the company's stock, valued at approximately $4,338,320. The trade was a 34.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Phong Le sold 93,738 shares of the company's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $118.73, for a total value of $11,129,512.74. Following the sale, the chief executive officer owned 119,925 shares of the company's stock, valued at $14,238,695.25. This trade represents a 43.87% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have purchased 11,166 shares of company stock worth $1,014,265 and have sold 181,422 shares worth $23,144,128. Company insiders own 6.49% of the company's stock.

Strategy News Summary

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy’s Bitcoin holdings increased to approximately 843,775 BTC, up about 25% year to date. The company also reported a $3.75 billion U.S. dollar reserve, intended to cover more than two years of preferred dividends and interest, reducing the risk of forced Bitcoin sales. Strategy posts Q2 loss and reserve details
• Positive Sentiment: The reported $8.22 billion loss was driven primarily by an $8.32 billion unrealized Bitcoin fair-value loss, making it largely noncash. Revenue rose 6.9% year over year to about $122.4 million, while subscription-services revenue reportedly grew sharply. BTIG reaffirmed a Buy rating and assigned a $250 price target, reflecting optimism about Bitcoin-per-share growth and Strategy’s treasury model. Strategy financials
• Neutral Sentiment: Management has authorized a $1 billion repurchase program for STRC preferred shares and bought back approximately $25 million at a discount. The move could support STRC’s price and preserve access to capital, but it diverts funds from additional Bitcoin purchases.
• Negative Sentiment: Michael Saylor indicated that Strategy could sell Bitcoin to support STRC if necessary. That possibility, combined with roughly $14.4 billion of preferred equity and investor criticism that the financing structure prioritizes preferred holders over MSTR common shareholders, heightened concerns about dilution, liquidity and downside exposure. Saylor discusses potential Bitcoin sales
• Negative Sentiment: Bitcoin’s retreat below approximately $64,000 pressured MSTR and other crypto-related stocks, reinforcing concerns that further cryptocurrency declines could produce additional accounting losses and weaken the value of Strategy’s Bitcoin-backed financing strategy. Crypto-linked stocks sell off

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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