Capital International Investors Increases Holdings in Strategy Inc $MSTR

Key Points

• Capital International Investors boosted its stake in Strategy by 37.3% in the fourth quarter, buying 5.6 million more shares and ending with 20.6 million shares valued at about $3.13 billion.
• Wall Street remains broadly constructive on the stock: analysts have a Moderate Buy consensus and an average price target of $313.93, though views are mixed and one firm recently cut its target.
• Despite the bullish analyst backdrop, Strategy is facing pressure from Bitcoin weakness, insider share sales, and a recent 6.9% drop in the stock; the company also reported a large quarterly loss, missing EPS estimates while revenue came in above forecasts.

Capital International Investors increased its stake in shares of Strategy Inc (NASDAQ:MSTR - Free Report) by 37.3% during the fourth quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 20,614,868 shares of the software maker's stock after buying an additional 5,600,573 shares during the quarter. Capital International Investors owned about 7.17% of Strategy worth $3,132,460,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently added to or reduced their stakes in the stock. McIlrath & Eck LLC lifted its position in Strategy by 3.8% during the second quarter. McIlrath & Eck LLC now owns 1,246 shares of the software maker's stock worth $504,000 after buying an additional 46 shares in the last quarter. Mill Creek Capital Advisors LLC lifted its position in Strategy by 2.8% during the third quarter. Mill Creek Capital Advisors LLC now owns 1,748 shares of the software maker's stock worth $563,000 after buying an additional 48 shares in the last quarter. Angeles Wealth Management LLC lifted its position in Strategy by 6.2% during the third quarter. Angeles Wealth Management LLC now owns 893 shares of the software maker's stock worth $288,000 after buying an additional 52 shares in the last quarter. Banco Bilbao Vizcaya Argentaria S.A. lifted its position in Strategy by 0.6% during 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 buying an additional 53 shares in the last quarter. Finally, Binnacle Investments Inc lifted its position in Strategy by 492.9% during the second quarter. Binnacle Investments Inc now owns 83 shares of the software maker's stock worth $34,000 after buying an additional 69 shares in the last quarter. Hedge funds and other institutional investors own 59.84% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the company. Canaccord Genuity Group set a $163.00 target price on Strategy and gave the stock a "buy" rating in a research note on Wednesday. Texas Capital raised Strategy to a "strong-buy" rating in a research note on Thursday, March 19th. B. Riley Financial raised their target price on Strategy from $200.00 to $215.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Mizuho cut their target price on Strategy from $320.00 to $265.00 and set an "outperform" rating for the company in a research note on Monday, June 1st. Finally, TD Cowen raised their target price on Strategy from $395.00 to $400.00 and gave the stock a "buy" rating in a research note on Tuesday, May 19th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have assigned 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 target price of $313.93.

Key Stories Impacting Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Some commentary noted that Strategy still has a large liquidity cushion, with reports citing about $2.25 billion in reserves and lower leverage, which could help support long-term balance-sheet stability. MSTR's Liquidity Position Improves: Is Long-Term Stability Growing?
• Positive Sentiment: Michael Saylor argued Bitcoin is undergoing a “disciplined expansion” and that institutional adoption through banks, credit, and capital markets could still support long-term demand for the asset. Saylor says Bitcoin needs ‘disciplined expansion’ as analysts weigh demand reset
• Neutral Sentiment: Strategy’s founder Michael Saylor also tried to frame the Bitcoin weakness as capital rotating into AI and other assets, suggesting the selloff may be more about market allocation than a fundamental break in Strategy’s business model. Strategy's Michael Saylor Blames 'Capital Rotation' Into AI as Bitcoin Dives 13%
• Neutral Sentiment: Several reports said the company’s small Bitcoin sale was mainly used to fund preferred stock dividends, but it still sparked concern that Strategy may need to keep adjusting its funding approach if crypto weakness persists. Crypto Biz: Nobody told Saylor ‘never sell’
• Negative Sentiment: Bitcoin’s drop below key support levels is pressuring all BTC-linked stocks, and Strategy was cited as one of the biggest losers as investors reassess the risks of its leveraged Bitcoin exposure. Crypto mutiny on Strategy: Shorts target 'MSTR' in bitcoin bloodbath
• Negative Sentiment: Analysts and market commentators warned that Strategy’s first Bitcoin sale in years may signal tighter liquidity, reduced buying capacity, and possible further downside if Bitcoin keeps falling. Why Strategy (Formerly MicroStrategy) Stock Collapsed This Week

Insider Activity

In other news, CFO Andrew Kang sold 33,062 shares of the business's stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $118.73, for a total value of $3,925,451.26. Following the completion of the sale, the chief financial officer directly owned 68,733 shares of the company's stock, valued at approximately $8,160,669.09. The trade was a 32.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Phong Le sold 93,738 shares of the company's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $118.73, for a total value of $11,129,512.74. Following the sale, the chief executive officer directly owned 119,925 shares of the company's stock, valued at approximately $14,238,695.25. This represents a 43.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 190,649 shares of company stock valued at $24,968,729. Insiders own 6.49% of the company's stock.

Strategy Trading Down 6.9%

MSTR opened at $120.44 on Friday. Strategy Inc has a 12 month low of $104.17 and a 12 month high of $457.22. The stock has a market capitalization of $42.21 billion, a price-to-earnings ratio of -3.00 and a beta of 3.49. The company has a debt-to-equity ratio of 0.22, a current ratio of 6.05 and a quick ratio of 6.05. The business has a fifty day moving average price of $153.65 and a 200 day moving average price of $154.35.

Strategy (NASDAQ:MSTR - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The software maker reported ($38.25) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.86) by ($37.39). The business had revenue of $124.30 million for the quarter, compared to analysts' expectations 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 quarterly revenue was up 11.9% on a year-over-year basis. During the same period last year, the firm earned ($16.49) earnings per share. Sell-side analysts expect that Strategy Inc will post 116.7 earnings per share for the current fiscal year.

Strategy 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.

Want to see what other hedge funds are holding MSTR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Strategy Inc (NASDAQ:MSTR - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.