D.A. Davidson & CO. Invests $3.86 Million in Strategy Inc $MSTR

Key Points

• D.A. Davidson & Co. opened a new position in Strategy Inc. during the first quarter, buying 30,929 shares valued at about $3.86 million.
• Institutional ownership in Strategy remains high, with hedge funds and other investors holding about 59.84% of the stock, and several smaller firms also recently adding stakes.
• Sentiment around MSTR is mixed: the company has boosted cash reserves and maintains a bullish Bitcoin thesis, but investors are increasingly skeptical of its valuation premium, and the stock has also been pressured by broader crypto weakness.

D.A. Davidson & CO. purchased a new stake in Strategy Inc (NASDAQ:MSTR - Free Report) in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 30,929 shares of the software maker's stock, valued at approximately $3,860,000.

Several other hedge funds and other institutional investors have also recently made changes to their positions in MSTR. Fideuram Asset Management Ireland dac purchased a new position in Strategy during the fourth quarter worth approximately $25,000. Westfuller Advisors LLC acquired a new position in Strategy during the first quarter worth $25,000. Dogwood Wealth Management LLC grew its holdings in 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 in the last quarter. Wilkerson Advisory Group LLC purchased a new stake in Strategy in the 4th quarter valued at $30,000. Finally, Binnacle Investments Inc increased its stake in shares of Strategy by 492.9% in the 2nd 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. Institutional investors and hedge funds own 59.84% of the company's stock.

Key Stories Impacting Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy increased its cash reserve to roughly $3 billion after selling shares, which should improve balance-sheet flexibility and ease worries about near-term liquidity or forced Bitcoin sales. Article Title
• Neutral Sentiment: Michael Saylor continued to defend Strategy’s Bitcoin treasury model, reinforcing the company’s long-term crypto thesis but offering little immediate operational change. Article Title
• Negative Sentiment: Investors are becoming more skeptical of the valuation, with reports arguing Strategy’s market cap is closer to the value of its Bitcoin holdings than before, reducing the premium that once supported the stock. Article Title
• Negative Sentiment: Broad crypto weakness has also hurt sentiment toward MSTR, since the shares tend to move with Bitcoin and other digital assets. Article Title

Strategy Price Performance

MSTR stock opened at $94.85 on Monday. Strategy Inc has a 52-week low of $81.81 and a 52-week high of $454.33. The company has a quick ratio of 6.05, a current ratio of 6.05 and a debt-to-equity ratio of 0.22. The stock has a market cap of $33.24 billion, a price-to-earnings ratio of -2.36 and a beta of 3.54. The business has a fifty day moving average of $125.94 and a two-hundred day moving average of $139.23.

Strategy (NASDAQ:MSTR - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The software maker reported ($38.25) EPS for the quarter, missing the consensus estimate of ($0.86) by ($37.39). The business had revenue of $124.30 million during the quarter, compared to analyst estimates of $120.75 million. Strategy had a negative net margin of 2,482.01% and a negative return on equity of 26.97%. The business's revenue for the quarter was up 11.9% on a year-over-year basis. During the same period last year, the company earned ($16.49) EPS. As a group, research analysts anticipate that Strategy Inc will post 57.47 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Andrew Kang sold 1,949 shares of the business's stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $123.84, for a total value of $241,364.16. Following the sale, the chief financial officer directly owned 71,044 shares in the company, valued at approximately $8,798,088.96. The trade was a 2.67% decrease in their position. The sale was disclosed in a filing 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 bought 11,000 shares of the firm's stock in a transaction on Monday, June 22nd. The stock was bought at an average cost of $90.80 per share, for a total transaction of $998,800.00. Following the transaction, the chief executive officer directly owned 11,000 shares of the company's stock, valued at $998,800. The trade was a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders bought 11,166 shares of company stock valued at $1,014,265 and sold 184,022 shares valued at $23,890,822. 6.49% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several research analysts have recently commented on MSTR shares. B. Riley Financial lifted their price target on Strategy from $200.00 to $215.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Monness Crespi & Hardt reissued a "neutral" rating on shares of Strategy in a report on Tuesday, June 2nd. TD Cowen cut their price objective on shares of Strategy from $400.00 to $260.00 and set a "buy" rating for the company in a research report on Tuesday, June 30th. Credit Suisse Group set a $250.00 target price on shares of Strategy in a research note on Tuesday, June 30th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Strategy in a research note on Wednesday, June 24th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $266.31.

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.