Jarrod Patten Sells 1,000 Shares of Strategy (NASDAQ:MSTR) Stock

Key Points

• Director Jarrod Patten sold 1,000 shares of Strategy (NASDAQ:MSTR) on May 8 at an average price of $186.69, trimming his stake by 3.45% to 28,000 shares.
• Strategy shares fell 5.9% to $184.42 amid lighter-than-average trading, while the stock remains highly volatile with a beta of 3.59.
• Recent earnings were mixed: revenue came in above expectations at $124.3 million and rose 11.9% year over year, but EPS missed badly at -$38.25 versus the -$0.86 estimate.

Strategy Inc (NASDAQ:MSTR - Get Free Report) Director Jarrod Patten sold 1,000 shares of Strategy stock in a transaction on Friday, May 8th. The shares were sold at an average price of $186.69, for a total transaction of $186,690.00. Following the completion of the sale, the director owned 28,000 shares of the company's stock, valued at $5,227,320. This represents a 3.45% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.

Strategy Stock Down 5.9%

MSTR stock traded down $11.52 during midday trading on Tuesday, reaching $184.42. 14,666,515 shares of the company's stock traded hands, compared to its average volume of 21,250,377. The company has a quick ratio of 5.62, a current ratio of 6.05 and a debt-to-equity ratio of 0.22. The company has a market cap of $61.55 billion, a price-to-earnings ratio of -4.59 and a beta of 3.59. The firm's fifty day moving average price is $146.50 and its 200-day moving average price is $166.62. Strategy Inc has a 52 week low of $104.17 and a 52 week high of $457.22.

Strategy (NASDAQ:MSTR - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The software maker reported ($38.25) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.86) by ($37.39). The firm had revenue of $124.30 million for 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%.Strategy's revenue was up 11.9% compared to the same quarter last year. During the same period in the prior year, the firm earned ($16.49) earnings per share. As a group, sell-side analysts forecast that Strategy Inc will post 136.35 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Strategy

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Binnacle Investments Inc raised its stake in Strategy by 492.9% in the 2nd quarter. Binnacle Investments Inc now owns 83 shares of the software maker's stock valued at $34,000 after acquiring an additional 69 shares during the period. Pilgrim Partners Asia Pte Ltd bought a new stake in Strategy in the 3rd quarter valued at about $32,000. Quent Capital LLC bought a new stake in Strategy in the 3rd quarter valued at about $33,000. Cheviot Value Management LLC bought a new stake in Strategy in the 3rd quarter valued at about $39,000. Finally, Bessemer Group Inc. raised its stake in Strategy by 356.7% in the 3rd quarter. Bessemer Group Inc. now owns 137 shares of the software maker's stock valued at $44,000 after acquiring an additional 107 shares during the period. 59.84% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of research firms have issued reports on MSTR. HC Wainwright reaffirmed a "buy" rating on shares of Strategy in a report on Friday, February 6th. BTIG Research reaffirmed a "buy" rating and set a $350.00 price objective (up from $250.00) on shares of Strategy in a report on Wednesday, May 6th. Texas Capital raised shares of Strategy to a "strong-buy" rating in a report on Thursday, March 19th. Canaccord Genuity Group set a $224.00 price target on shares of Strategy and gave the stock a "buy" rating in a report on Thursday, May 7th. Finally, TD Cowen reissued a "buy" rating and issued a $395.00 price target (up from $385.00) on shares of Strategy in a report on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $321.86.

Key Headlines Impacting Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy resumed bitcoin purchases, buying 535 BTC for about $43 million, reinforcing management’s conviction in its long-term bitcoin accumulation strategy.
• Positive Sentiment: Analysts remain broadly constructive, with Cantor Fitzgerald reaffirming an Overweight rating and other firms such as TD Cowen and BTIG maintaining Buy views.
• Positive Sentiment: The company’s software business had its strongest quarter in a decade, with revenue up 11.9% year over year and cloud revenue growth helping support the broader investment story.
• Neutral Sentiment: Strategy is pushing STRC preferred shares and a possible semi-monthly dividend structure, which may improve demand for the security but also keeps attention on the company’s financing model.
• Negative Sentiment: Director Jarrod M. Patten sold shares twice this month, and insider sales can weigh on sentiment when investors are already focused on volatility and valuation risk.
• Negative Sentiment: Investors are still digesting Saylor’s comments that Strategy may occasionally sell bitcoin to fund dividends, which has fueled concerns about the sustainability and risk profile of the treasury strategy.

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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