Insider Selling: Strategy (NASDAQ:MSTR) Director Sells 15,050 Shares of Stock

Key Points

• Strategy director Jarrod Patten sold 15,050 shares on May 29 at an average price of $154.94, for proceeds of about $2.33 million. After the sale, he still held 28,000 shares, marking a 34.96% reduction in his stake.
• MSTR shares fell 5.9% to $149.78 in Monday trading, below both its 50-day and 200-day moving averages. The stock remains highly volatile, with a beta of 3.59 and a market cap of about $52.49 billion.
• Investor sentiment has been pressured by Strategy’s recent Bitcoin sale and financing activity, including concerns about preferred dividend funding and dilution from at-the-market equity issuance. Despite that, the company still holds 843,706 BTC, keeping MSTR closely tied to Bitcoin’s price moves.

Strategy Inc (NASDAQ:MSTR - Get Free Report) Director Jarrod Patten sold 15,050 shares of the stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $154.94, for a total transaction of $2,331,847.00. Following the transaction, the director owned 28,000 shares in the company, valued at approximately $4,338,320. The trade was a 34.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.

Strategy Trading Down 5.9%

NASDAQ MSTR traded down $9.31 during mid-day trading on Monday, hitting $149.78. The company's stock had a trading volume of 17,680,271 shares, compared to its average volume of 20,387,682. Strategy Inc has a 52-week low of $104.17 and a 52-week high of $457.22. The stock's fifty day simple moving average is $154.16 and its two-hundred day simple moving average is $156.86. 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 firm has a market capitalization of $52.49 billion, a P/E ratio of -3.73 and a beta of 3.59.

Strategy (NASDAQ:MSTR - Get Free Report) last posted 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). 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 during the quarter, compared to analysts' expectations of $120.75 million. During the same quarter in the previous year, the business posted ($16.49) EPS. The company's quarterly revenue was up 11.9% on a year-over-year basis. Research analysts expect that Strategy Inc will post 116.7 EPS for the current year.

Trending Headlines about Strategy

Here are the key news stories impacting Strategy this week:

• Negative Sentiment: Strategy sold 32 BTC for about $2.5 million between May 26 and May 31 to help fund preferred stock dividend payments, which raised concerns that the company may need to use Bitcoin more actively to support its capital structure. CNBC article
• Negative Sentiment: The sale challenged Michael Saylor’s long-held “never sell Bitcoin” narrative, which appears to have shaken confidence in Strategy’s treasury strategy and pressured the stock. MarketWatch article
• Negative Sentiment: Investors also reacted to ongoing at-the-market equity issuance, which adds dilution concerns on top of the Bitcoin sale and reinforces worries about financing preferred dividends and other obligations. Quiver Quantitative article
• Neutral Sentiment: Despite the selloff, the company still holds 843,706 BTC, so MSTR remains highly leveraged to Bitcoin’s price direction and broader crypto sentiment. Cointelegraph article

Wall Street Analyst Weigh In

MSTR has been the topic of several research reports. Canaccord Genuity Group set a $224.00 price target on shares of Strategy and gave the company a "buy" rating in a report on Thursday, May 7th. Mizuho cut their price target on shares of Strategy from $320.00 to $265.00 and set an "outperform" rating on the stock in a report on Monday. Zacks Research lowered shares of Strategy from a "hold" rating to a "strong sell" rating in a report on Monday, May 18th. Wall Street Zen lowered shares of Strategy from a "hold" rating to a "sell" rating in a report on Sunday, February 8th. Finally, B. Riley Financial raised their price target on shares of Strategy from $200.00 to $215.00 and gave the company a "buy" rating in a report on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Strategy has an average rating of "Moderate Buy" and a consensus price target of $318.29.

Institutional Trading of Strategy

A number of hedge funds have recently made changes to their positions in the company. Foguth Wealth Management LLC. purchased a new stake in shares of Strategy during the first quarter valued at approximately $169,000. Lavelle Capital LP bought a new stake in shares of Strategy in the first quarter worth $3,106,000. Maripau Wealth Management LLC increased its stake in shares of Strategy by 13.0% in the first quarter. Maripau Wealth Management LLC now owns 6,252 shares of the software maker's stock worth $780,000 after buying an additional 717 shares during the last quarter. Coastline Complete Wealth LLC bought a new stake in shares of Strategy in the first quarter worth $285,000. Finally, CTC Alternative Strategies Ltd. increased its stake in shares of Strategy by 14.7% in the first quarter. CTC Alternative Strategies Ltd. now owns 5,008 shares of the software maker's stock worth $625,000 after buying an additional 642 shares during the last quarter. Hedge funds and other institutional investors own 59.84% 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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