SG Americas Securities LLC Decreases Stock Position in Strategy Inc $MSTR

Key Points

• SG Americas Securities LLC cut its stake in Strategy Inc. by 39.8% in the first quarter, selling 369,922 shares and ending with 558,805 shares worth about $69.7 million.
• Strategy continues to draw attention for its Bitcoin-heavy balance sheet, recently buying another 520 BTC and lifting its USD reserve to $1.4 billion, while its total Bitcoin holdings are now around 847,000 BTC.
• Despite some bullish analyst ratings, investors are increasingly worried about funding pressure after Strategy halted new STRC preferred stock sales and may need to sell Bitcoin to meet dividend obligations.

SG Americas Securities LLC trimmed its holdings in shares of Strategy Inc (NASDAQ:MSTR - Free Report) by 39.8% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 558,805 shares of the software maker's stock after selling 369,922 shares during the period. SG Americas Securities LLC owned approximately 0.17% of Strategy worth $69,739,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of MSTR. Capital International Investors lifted its holdings in shares of Strategy by 37.3% during the fourth quarter. Capital International Investors now owns 20,614,868 shares of the software maker's stock valued at $3,132,460,000 after purchasing an additional 5,600,573 shares in the last quarter. Vanguard Group Inc. increased its holdings in Strategy by 21.0% in the 4th quarter. Vanguard Group Inc. now owns 24,062,886 shares of the software maker's stock worth $3,656,356,000 after buying an additional 4,178,611 shares in the last quarter. Amundi raised its position in Strategy by 373.7% in the 4th quarter. Amundi now owns 4,790,702 shares of the software maker's stock worth $727,947,000 after buying an additional 3,779,340 shares during the last quarter. Norges Bank bought a new position in Strategy during the 4th quarter valued at about $536,140,000. Finally, Capital Research Global Investors boosted its holdings in shares of Strategy by 66.7% during the 4th quarter. Capital Research Global Investors now owns 7,008,535 shares of the software maker's stock valued at $1,064,963,000 after acquiring an additional 2,803,277 shares during the last quarter. Institutional investors own 59.84% of the company's stock.

Strategy News Summary

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy disclosed that it bought another 520 Bitcoin for about $34.9 million and raised its USD reserve by $300 million to $1.4 billion, which supporters view as a balance-sheet buffer and a sign the company is still committed to expanding its Bitcoin holdings. Article Title
• Positive Sentiment: Michael Saylor’s latest “orange dots” post fueled speculation of more Bitcoin buying, helping reinforce the bullish narrative that Strategy is still actively accumulating BTC. Article Title
• Neutral Sentiment: Analysts and market watchers continue to focus on Strategy’s massive Bitcoin treasury, now around 847,000 BTC, keeping the stock closely tied to crypto price moves rather than software fundamentals. Article Title
• Negative Sentiment: Investor concern is rising that Strategy’s STRC preferred stock is trading below par, forcing the company to halt new STRC sales and even sell Bitcoin to help cover dividend obligations. That has sparked fears about funding pressure, dilution, and the durability of its capital model. Article Title
• Negative Sentiment: Related commentary highlighted that STRC’s slide has “emboldened critics” and raised questions about whether Strategy’s Bitcoin-financing flywheel is starting to break down, which is pressuring the stock. Article Title

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on MSTR. Canaccord Genuity Group set a $163.00 price target on shares of Strategy and gave the stock a "buy" rating in a research note on Wednesday, June 3rd. BTIG Research restated a "buy" rating and set a $350.00 price objective (up from $250.00) on shares of Strategy in a research report on Wednesday, May 6th. Cantor Fitzgerald restated an "overweight" rating on shares of Strategy in a report on Monday, June 15th. 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 research report on Thursday, May 7th. Finally, Mizuho decreased their target price on shares of Strategy from $320.00 to $265.00 and set an "outperform" rating for the company in a research note on Monday, June 1st. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Strategy currently has an average rating of "Moderate Buy" and a consensus target price of $313.93.

Strategy Price Performance

Shares of NASDAQ:MSTR opened at $109.46 on Tuesday. 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 capitalization of $38.36 billion, a PE ratio of -2.73 and a beta of 3.50. The firm's 50 day moving average price is $152.30 and its 200-day moving average price is $149.37. Strategy Inc has a twelve month low of $104.17 and a twelve month high of $457.22.

Strategy (NASDAQ:MSTR - Get Free Report) last announced its earnings results on Tuesday, May 5th. The software maker reported ($38.25) earnings per share (EPS) for the quarter, missing the consensus estimate 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 business had revenue of $124.30 million for the quarter, compared to the consensus estimate of $120.75 million. During the same quarter last year, the firm posted ($16.49) earnings per share. The business's quarterly revenue was up 11.9% compared to the same quarter last year. Equities research analysts expect that Strategy Inc will post 116.7 EPS for the current year.

Insider Transactions at Strategy

In related news, CEO Phong Le sold 93,738 shares of the firm's stock in a transaction 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 transaction, the chief executive officer directly owned 119,925 shares of the company's stock, valued at approximately $14,238,695.25. This trade represents a 43.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 Strategy stock in a transaction on Friday, May 29th. The shares were 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 in the company, valued at $4,338,320. This trade represents a 34.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have acquired 11,166 shares of company stock worth $1,014,265 and have sold 192,122 shares worth $25,030,501. Corporate insiders own 6.49% of the company's stock.

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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