Bank of America Corp DE Grows Stock Holdings in Strategy Inc $MSTR

Key Points

• Bank of America increased its Strategy stake by 3.1% in the first quarter, adding 117,374 shares to hold 3.97 million shares worth approximately $494.9 million. Institutional investors collectively own 59.84% of MSTR.
• Analysts maintain a generally positive outlook, with Strategy receiving a consensus “Moderate Buy” rating and an average price target of $257.88, despite several recent target-price reductions.
• Strategy reported a sharp quarterly loss of $24.45 per share, far below the $2.19 consensus estimate, while revenue rose 6.9% year over year to $122.37 million. Insider selling also exceeded buying over the past three months, with insiders selling $23.1 million of shares.

Bank of America Corp DE lifted its stake in Strategy Inc (NASDAQ:MSTR - Free Report) by 3.1% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 3,965,680 shares of the software maker's stock after purchasing an additional 117,374 shares during the quarter. Bank of America Corp DE owned about 1.13% of Strategy worth $494,917,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors also recently made changes to their positions in MSTR. McIlrath & Eck LLC increased its position in Strategy by 3.8% during the 2nd quarter. McIlrath & Eck LLC now owns 1,246 shares of the software maker's stock valued at $504,000 after buying an additional 46 shares in the last quarter. Banco Bilbao Vizcaya Argentaria S.A. boosted its holdings in Strategy by 0.6% in the third quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 9,533 shares of the software maker's stock worth $3,061,000 after acquiring an additional 53 shares in the last quarter. Binnacle Investments Inc grew its stake in shares of Strategy by 492.9% in the second quarter. Binnacle Investments Inc now owns 83 shares of the software maker's stock worth $34,000 after acquiring an additional 69 shares during the last quarter. Patriot Investment Management Group Inc. grew its stake in shares of Strategy by 0.5% in the fourth quarter. Patriot Investment Management Group Inc. now owns 14,538 shares of the software maker's stock worth $2,209,000 after acquiring an additional 73 shares during the last quarter. Finally, KPP Advisory Services LLC increased its holdings in shares of Strategy by 0.5% during the fourth quarter. KPP Advisory Services LLC now owns 14,994 shares of the software maker's stock valued at $2,278,000 after acquiring an additional 79 shares in the last quarter. Hedge funds and other institutional investors own 59.84% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on MSTR shares. Zacks Research upgraded shares of Strategy from a "strong sell" rating to a "hold" rating in a research note on Monday, July 6th. B. Riley Financial lifted their target price on shares of Strategy from $200.00 to $215.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Mizuho dropped their target price on shares of Strategy from $265.00 to $213.00 and set an "outperform" rating on the stock in a research note on Tuesday, July 7th. UBS Group reiterated a "buy" rating on shares of Strategy in a report on Friday. Finally, Citigroup reissued a "buy" rating and set a $136.00 price target (down from $260.00) on shares of Strategy in a research report on Tuesday, June 30th. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Strategy has a consensus rating of "Moderate Buy" and an average target price of $257.88.

Strategy Price Performance

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 50-day moving average of $110.34 and a 200 day 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. The company has a market capitalization of $32.69 billion, a price-to-earnings ratio of -0.96 and a beta of 3.54.

Strategy (NASDAQ:MSTR - Get Free Report) last posted its earnings results on Thursday, July 30th. The software maker reported ($24.45) earnings per share (EPS) for the quarter, missing the consensus estimate 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 net margin of 6,102.95% and a negative return on equity of 68.55%. Strategy's revenue was up 6.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $32.52 EPS. On average, sell-side analysts forecast that Strategy Inc will post 57.47 EPS for the current year.

Insider Activity

In related news, CFO Andrew Kang sold 33,062 shares of the stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $118.73, for a total transaction of $3,925,451.26. Following the transaction, the chief financial officer owned 68,733 shares in the company, valued at $8,160,669.09. This represents a 32.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 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 the firm'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 transaction of $2,331,847.00. Following the completion of the sale, the director owned 28,000 shares in the company, valued at $4,338,320. This represents a 34.96% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders purchased 11,166 shares of company stock valued at $1,014,265 and sold 181,422 shares valued at $23,144,128. 6.49% of the stock is owned by corporate insiders.

More Strategy News

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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