ProShare Advisors LLC Grows Stock Position in Strategy Inc $MSTR

Key Points

• ProShare Advisors LLC boosted its stake in Strategy Inc. by 45.7% in the fourth quarter, buying an additional 131,014 shares and ending with 417,790 shares valued at about $63.5 million.
• Strategy’s stock was down 1.2% on the day, opening at $164.63, while the company remains highly volatile with a 52-week range of $104.17 to $457.22 and a beta of 3.59.
• Despite reporting revenue above expectations in its latest quarter, Strategy posted a much larger-than-expected loss, and investor sentiment continues to be driven by its aggressive Bitcoin holdings and recent insider selling.

ProShare Advisors LLC lifted its stake in shares of Strategy Inc (NASDAQ:MSTR - Free Report) by 45.7% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 417,790 shares of the software maker's stock after purchasing an additional 131,014 shares during the quarter. ProShare Advisors LLC owned about 0.15% of Strategy worth $63,483,000 at the end of the most recent quarter.

Several other large investors have also modified their holdings of the stock. Federated Hermes Inc. purchased a new position in Strategy during the second quarter worth about $396,000. Cary Street Partners Financial LLC purchased a new position in Strategy during the second quarter worth about $202,000. Sei Investments Co. raised its holdings in Strategy by 136.0% during the second quarter. Sei Investments Co. now owns 39,905 shares of the software maker's stock worth $16,125,000 after purchasing an additional 22,999 shares in the last quarter. The Manufacturers Life Insurance Company raised its holdings in Strategy by 59.4% during the second quarter. The Manufacturers Life Insurance Company now owns 19,215 shares of the software maker's stock worth $7,767,000 after purchasing an additional 7,158 shares in the last quarter. Finally, Peapack Gladstone Financial Corp raised its holdings in Strategy by 22.0% during the second quarter. Peapack Gladstone Financial Corp now owns 3,055 shares of the software maker's stock worth $1,235,000 after purchasing an additional 550 shares in the last quarter. Hedge funds and other institutional investors own 59.84% of the company's stock.

Strategy Trading Down 1.2%

Shares of Strategy stock opened at $164.63 on Wednesday. Strategy Inc has a 12-month low of $104.17 and a 12-month high of $457.22. 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 stock has a market cap of $57.69 billion, a PE ratio of -4.10 and a beta of 3.59. The company has a 50-day moving average of $151.27 and a two-hundred day moving average of $162.03.

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 for the quarter, missing analysts' consensus estimates of ($0.86) by ($37.39). Strategy had a negative net margin of 2,482.01% and a negative return on equity of 26.97%. The firm had revenue of $124.30 million during the quarter, compared to analysts' expectations of $120.75 million. During the same quarter in the prior year, the business earned ($16.49) EPS. The company's quarterly revenue was up 11.9% compared to the same quarter last year. On average, research analysts anticipate that Strategy Inc will post 116.7 EPS for the current fiscal year.

Key Stories Impacting Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: TD Cowen raised its price target on Strategy to $400 from $395 and reiterated a Buy rating, citing continued Bitcoin accumulation and upside in the company’s treasury strategy. Article Title
• Positive Sentiment: Strategy disclosed a massive Bitcoin purchase of 24,869 BTC for about $2.01 billion, lifting holdings to 843,738 BTC and reinforcing its position as the largest public corporate Bitcoin holder. Article Title
• Positive Sentiment: Several reports highlighted strong investor interest in the company’s aggressive Bitcoin accumulation and the possibility that the strategy could support future share-price appreciation if Bitcoin rebounds. Article Title
• Neutral Sentiment: Jarrod Patten, a Strategy director, sold 1,500 shares, which adds a small insider-overhang headline but is not large enough on its own to change the core thesis. Article Title
• Neutral Sentiment: Management said it may repurchase $1.5 billion of convertible notes and could potentially fund that with Bitcoin sales, signaling a more flexible capital structure but also a shift away from the prior “never sell” stance. Article Title
• Negative Sentiment: Bitcoin fell sharply and crypto liquidations surged, weighing on Strategy because MSTR behaves like a leveraged proxy for BTC and tends to move with the coin. Article Title
• Negative Sentiment: Some investors view the convertible debt buyback and possible Bitcoin sales as adding balance-sheet risk, which is pressuring the stock in the near term. Article Title

Insider Activity

In other news, Director Jarrod M. Patten sold 3,400 shares of the firm's stock in a transaction on Monday, April 13th. The stock was sold at an average price of $130.65, for a total value of $444,210.00. Following the completion of the transaction, the director owned 28,000 shares in the company, valued at $3,658,200. This trade represents a 10.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Andrew Kang sold 2,373 shares of the firm's stock in a transaction on Tuesday, March 24th. The shares were sold at an average price of $138.33, for a total value of $328,257.09. Following the completion of the transaction, the chief financial officer owned 26,772 shares of the company's stock, valued at approximately $3,703,370.76. This represents a 8.14% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 30,702 shares of company stock worth $4,707,839 over the last 90 days. 6.49% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

MSTR has been the subject of several analyst reports. Wall Street Zen cut shares of Strategy from a "hold" rating to a "sell" rating in a report on Sunday, February 8th. Texas Capital upgraded Strategy to a "strong-buy" rating in a research report on Thursday, March 19th. Zacks Research cut Strategy from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, April 7th. Cantor Fitzgerald reiterated an "overweight" rating on shares of Strategy in a research report on Monday, May 11th. Finally, Benchmark cut their price objective on Strategy from $705.00 to $570.00 and set a "buy" rating for the company in a research report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have assigned a Hold 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 price target 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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