Strategy Inc $MSTR is Virtu Financial LLC's 7th Largest Position

Key Points

• Virtu Financial LLC boosted its stake in Strategy Inc. by 1,009.4% in the fourth quarter, making MSTR its 7th largest holding. The position was valued at about $17.4 million.
• Strategy’s latest earnings showed a much larger-than-expected loss, with EPS of ($38.25) versus the forecast of ($0.86), even though revenue rose 11.9% year over year to $124.3 million.
• Despite mixed analyst views, the stock currently carries a Moderate Buy consensus with a target price of $313.93, while recent insider sales and crypto-related funding concerns have weighed on sentiment.

Virtu Financial LLC increased its stake in shares of Strategy Inc (NASDAQ:MSTR - Free Report) by 1,009.4% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 114,731 shares of the software maker's stock after purchasing an additional 104,389 shares during the quarter. Strategy accounts for 0.7% of Virtu Financial LLC's holdings, making the stock its 7th largest holding. Virtu Financial LLC's holdings in Strategy were worth $17,433,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors also recently bought and sold shares of MSTR. Federated Hermes Inc. acquired a new position in shares of Strategy during the second quarter worth about $396,000. Cary Street Partners Financial LLC purchased a new stake in shares of Strategy during the second quarter worth approximately $202,000. Sei Investments Co. raised its holdings in Strategy by 136.0% in the second quarter. Sei Investments Co. now owns 39,905 shares of the software maker's stock valued at $16,125,000 after acquiring an additional 22,999 shares in the last quarter. The Manufacturers Life Insurance Company raised its holdings in shares of Strategy by 59.4% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 19,215 shares of the software maker's stock valued at $7,767,000 after purchasing an additional 7,158 shares in the last quarter. Finally, Peapack Gladstone Financial Corp raised its stake in Strategy by 22.0% in the second quarter. Peapack Gladstone Financial Corp now owns 3,055 shares of the software maker's stock valued at $1,235,000 after buying an additional 550 shares in the last quarter. Hedge funds and other institutional investors own 59.84% of the company's stock.

Strategy Stock Performance

Shares of MSTR opened at $112.53 on Friday. Strategy Inc has a 1 year low of $104.17 and a 1 year high of $457.22. The company's 50 day simple moving average is $153.01 and its 200 day simple moving average is $150.29. The company has a market capitalization of $39.44 billion, a price-to-earnings ratio of -2.80 and a beta of 3.49. The company has a debt-to-equity ratio of 0.22, a quick ratio of 6.05 and a current ratio of 6.05.

Strategy (NASDAQ:MSTR - Get Free Report) last released its 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 firm had revenue of $124.30 million during 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 revenue was up 11.9% on a year-over-year basis. During the same period in the previous year, the firm posted ($16.49) earnings per share. On average, sell-side analysts predict that Strategy Inc will post 116.7 EPS for the current year.

Wall Street Analysts Forecast Growth

MSTR has been the subject of several research analyst reports. BTIG Research restated a "buy" rating and issued a $350.00 price objective (up from $250.00) on shares of Strategy in a research note on Wednesday, May 6th. Texas Capital upgraded shares of Strategy to a "strong-buy" rating in a research report on Thursday, March 19th. Cantor Fitzgerald reiterated an "overweight" rating on shares of Strategy in a research report on Monday. Zacks Research downgraded shares of Strategy from a "hold" rating to a "strong sell" rating in a report on Monday, May 18th. Finally, B. Riley Financial lifted their price objective on Strategy from $200.00 to $215.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $313.93.

Insiders Place Their Bets

In related news, Director Jarrod M. Patten sold 15,050 shares of the company's stock in a transaction on Friday, May 29th. The stock was sold at an average price of $154.94, for a total value of $2,331,847.00. Following the completion of the transaction, the director directly owned 28,000 shares in the company, valued at approximately $4,338,320. This represents a 34.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Phong Le sold 93,738 shares of the firm'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 $11,129,512.74. Following the completion of the sale, the chief executive officer directly owned 119,925 shares in the company, valued at approximately $14,238,695.25. The trade was 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. Insiders have sold a total of 198,264 shares of company stock valued at $25,880,124 in the last quarter. 6.49% of the stock is currently owned by company insiders.

Key Strategy News

Here are the key news stories impacting Strategy this week:

• Negative Sentiment: Director Jarrod M. Patten sold 1,500 shares, reinforcing caution around insider confidence and adding pressure to the stock. SEC filing
• Negative Sentiment: Strategy’s preferred stock STRC fell to a record low, raising fears that the company’s Bitcoin purchase funding model is becoming harder to sustain without more dilution or added dividend strain. Article Title
• Negative Sentiment: Several market reports said traders are increasingly worried Strategy may need to slow Bitcoin buying or eventually sell BTC if dividend obligations and funding pressure worsen. Article Title
• Negative Sentiment: Commentary also pointed to softer crypto conditions and the company’s heavy dependence on share issuance, which continues to weigh on sentiment toward MSTR. Article Title
• Neutral Sentiment: Executive Chairman Michael Saylor defended Strategy’s approach, saying the company is a “shock absorber” for Bitcoin rather than a systemic risk, but that argument has not offset investor concerns. Article Title
• Neutral Sentiment: The company also disclosed a small insider buy by EVP Thomas C. Chow, which is a minor positive signal but unlikely to change the broader market narrative on its own. Article Title

Strategy Company 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.

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