Jarrod Patten Sells 2,750 Shares of Strategy (NASDAQ:MSTR) Stock

Key Points

• Strategy director Jarrod Patten sold 2,750 shares on May 11 at an average price of $191.59, generating about $526,872.50 and trimming his holdings by 8.94%.
• The stock fell 5.9% to $184.42 in Tuesday trading, with activity below average volume as investors digested the insider sale and recent volatility.
• Strategy’s latest earnings were mixed: revenue beat expectations at $124.3 million and rose 11.9% year over year, but EPS came in far below estimates at -$38.25 per share. Analysts currently rate the stock a consensus Moderate Buy with an average target price of $321.86.

Strategy Inc (NASDAQ:MSTR - Get Free Report) Director Jarrod Patten sold 2,750 shares of Strategy stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $191.59, for a total transaction of $526,872.50. Following the completion of the transaction, the director owned 28,000 shares of the company's stock, valued at $5,364,520. This represents a 8.94% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.

Strategy Stock Down 5.9%

Strategy stock traded down $11.52 during trading on Tuesday, reaching $184.42. The stock had a trading volume of 14,651,857 shares, compared to its average volume of 21,250,283. Strategy Inc has a 52-week low of $104.17 and a 52-week high of $457.22. The business has a 50 day moving average price of $146.50 and a 200 day moving average price of $166.62. 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 stock has a market cap of $61.55 billion, a PE ratio of -4.59 and a beta of 3.59.

Strategy (NASDAQ:MSTR - Get Free Report) last issued its quarterly earnings results 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). Strategy had a negative return on equity of 26.97% and a negative net margin of 2,482.01%.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 firm earned ($16.49) EPS. The firm's revenue was up 11.9% compared to the same quarter last year. On average, analysts predict that Strategy Inc will post 136.35 EPS for the current year.

Institutional Trading of Strategy

Several institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. lifted its position in shares of Strategy by 21.0% during 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 during the last quarter. Capital International Investors raised its position in Strategy by 37.3% in the 4th 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 during the last quarter. Capital Research Global Investors raised its position in Strategy by 66.7% in 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 purchasing an additional 2,803,277 shares during the last quarter. State Street Corp raised its position in Strategy by 2.3% in the 4th quarter. State Street Corp now owns 6,127,301 shares of the software maker's stock valued at $931,043,000 after purchasing an additional 138,253 shares during the last quarter. Finally, 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 valued at $727,947,000 after purchasing an additional 3,779,340 shares during the last quarter. Hedge funds and other institutional investors own 59.84% of the company's stock.

Analyst Ratings Changes

MSTR has been the subject of a number of recent research reports. Zacks Research downgraded shares of Strategy from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 7th. Wall Street Zen downgraded shares of Strategy from a "hold" rating to a "sell" rating in a research report on Sunday, February 8th. Benchmark reduced their price objective on shares of Strategy from $705.00 to $570.00 and set a "buy" rating for the company in a research report on Wednesday, May 6th. HC Wainwright restated a "buy" rating on shares of Strategy in a research report on Friday, February 6th. Finally, B. Riley Financial boosted their price objective 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. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, Strategy currently has a consensus rating of "Moderate Buy" and an average target price of $321.86.

More Strategy News

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy resumed buying Bitcoin, adding 535 BTC for about $43 million and lifting total holdings to 818,869 BTC, reinforcing its core Bitcoin accumulation thesis. Strategy Expands Bitcoin Treasury Using ATM Equity Proceeds
• Positive Sentiment: TD Cowen and Cantor Fitzgerald both maintained bullish views on MSTR, with TD Cowen lifting its price target to $395 and Cantor reiterating an Overweight rating, which supports sentiment around the shares. TD Cowen Maintains Buy Rating on Strategy (MSTR) Following Strong BTC Yield
• Positive Sentiment: Management says the company’s software business had its best quarter in a decade, with stronger cloud revenue and margins helping fund its Bitcoin strategy, which could help investors value MSTR as more than just a Bitcoin proxy. Why Is Strategy Valuable? CEO Says MSTR Is More Than Its BTC Holdings
• Neutral Sentiment: Michael Saylor is aggressively promoting STRC, saying the CLARITY Act could improve adoption and that the preferred stock is a lower-volatility way to participate in Strategy’s Bitcoin strategy, but market reaction remains mixed. Michael Saylor Says CLARITY Act Will Unlock STRC 'Adoption', But Prediction Markets Aren't Buying It
• Negative Sentiment: Investors remain cautious after Saylor said Strategy could sell Bitcoin at times to fund STRC dividends, raising questions about whether the company may need to monetize holdings to meet obligations. Strategy’s Bitcoin Sale Comment Puts Treasury Risk in Focus

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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