Strive Sees Unusually High Options Volume (NASDAQ:ASST)

Key Points

• Unusual options activity: Investors purchased 45,972 call options on Strive, 32% above its typical call volume of 34,725. The stock rose $3.71 to $30.77 on volume more than double its average.
• Bitcoin-focused financing and acquisitions: Strive raised $630 million through its SATS preferred-stock offering, which carries a 15% dividend, and reportedly used financing and warrant proceeds to purchase substantial additional Bitcoin.
• Analyst support contrasts with significant risk: Analysts give Strive a “Moderate Buy” consensus rating with an average $33.20 price target, but the company reported a steep quarterly loss, highly negative margins, insider selling, and considerable exposure to Bitcoin volatility and costly preferred financing.

Strive, Inc. (NASDAQ:ASST - Get Free Report) saw some unusual options trading activity on Wednesday. Investors purchased 45,972 call options on the stock. This is an increase of 32% compared to the typical volume of 34,725 call options.

Analysts Set New Price Targets

ASST has been the topic of a number of analyst reports. Benchmark reaffirmed a "buy" rating on shares of Strive in a research report on Thursday, August 20th. Weiss Ratings restated a "sell (d-)" rating on shares of Strive in a research note on Monday, October 12th. Maxim Group set a $37.00 target price on Strive and gave the company a "buy" rating in a report on Monday, October 12th. HC Wainwright cut their price objective on shares of Strive from $37.00 to $36.00 and set a "buy" rating on the stock in a research report on Tuesday, August 11th. Finally, TD Cowen restated a "buy" rating on shares of Strive in a research report on Monday, September 21st. Five investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Strive currently has an average rating of "Moderate Buy" and an average price target of $33.20.

Strive News Summary

Here are the key news stories impacting Strive this week:

• Positive Sentiment: $630 million raised for Bitcoin purchases: Strive closed an upsized offering of 7 million shares of its Series A Perpetual SATS Preferred Stock at $90 per share. The securities carry a 15% dividend and began trading on Nasdaq under the symbol SATS. The proceeds are intended to support additional Bitcoin acquisitions. Strive Announces Nasdaq Listing of SATS and Closing of Upsized Initial Public Offering
• Positive Sentiment: Bitcoin holdings reportedly surpassed MARA: Coverage indicated that Strive used the financing to increase its Bitcoin holdings and move ahead of MARA in the publicly traded-company Bitcoin rankings. That reinforces the company’s positioning as a Bitcoin treasury vehicle and may be attracting crypto-focused investors. Strive Stock Jumps as It Passes MARA in Bitcoin Holdings
• Positive Sentiment: Additional Bitcoin acquisition: Strive reportedly purchased approximately $335 million of Bitcoin using proceeds from a $369 million warrant-related windfall, further increasing its exposure to potential Bitcoin price appreciation. Strive Buys $335 Million in Bitcoin After Warrant Windfall
• Neutral Sentiment: First SATS dividend declared: Strive’s board declared the initial cash distribution on the SATS preferred shares, highlighting the new security’s income feature and the company’s obligation to fund its 15% preferred dividend. Strive Announces Initial SATS Preferred Cash Distributions
• Negative Sentiment: High financing cost and risk remain: The 15% perpetual dividend represents a substantial recurring claim ahead of common shareholders. Strive’s strategy also leaves ASST highly sensitive to Bitcoin volatility, while the company’s recent quarterly loss and very negative margins underscore its underlying operating risk. Bitcoin Treasury Strive Debuts New Preferred Stock With 15% Dividend

Strive Price Performance

NASDAQ ASST traded up $3.71 on Wednesday, hitting $30.77. 12,079,026 shares of the company were exchanged, compared to its average volume of 5,502,278. The firm has a market capitalization of $2.63 billion, a P/E ratio of -3.48 and a beta of 13.26. Strive has a twelve month low of $7.02 and a twelve month high of $36.20. The company's 50 day moving average price is $24.93 and its 200-day moving average price is $17.83.

Strive (NASDAQ:ASST - Get Free Report) last released its earnings results on Monday, August 10th. The company reported ($3.65) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.95) by ($2.70). Strive had a negative net margin of 10,957.22% and a negative return on equity of 141.47%. The business had revenue of $2.94 million during the quarter, compared to analysts' expectations of $3.02 million. As a group, equities analysts expect that Strive will post 1.17 EPS for the current year.

Insider Buying and Selling at Strive

In other Strive news, insider Brian Beirne sold 20,077 shares of the business's stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $31.33, for a total transaction of $629,012.41. Following the completion of the sale, the insider owned 41,425 shares of the company's stock, valued at approximately $1,297,845.25. The trade was a 32.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director James Lavish sold 6,000 shares of the stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $30.75, for a total transaction of $184,500.00. Following the sale, the director directly owned 8,815 shares of the company's stock, valued at approximately $271,061.25. This trade represents a 40.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 101,409 shares of company stock worth $3,166,897. 2.71% of the stock is currently owned by company insiders.

Institutional Trading of Strive

Hedge funds have recently added to or reduced their stakes in the business. Allworth Financial LP acquired a new stake in Strive during the second quarter worth $66,000. AXQ Capital LP bought a new position in shares of Strive in the second quarter valued at approximately $110,000. Formidable Asset Management LLC acquired a new position in Strive in the first quarter worth $113,000. The Manufacturers Life Insurance Company acquired a new stake in shares of Strive in the second quarter valued at $179,000. Finally, Corient Private Wealth LP bought a new stake in shares of Strive during the second quarter valued at approximately $448,000. Institutional investors own 5.52% of the company's stock.

About Strive

Strive, Inc is an asset management and financial services company focused on providing investment products and strategies designed to prioritize long-term shareholder value. The company offers exchange-traded funds, separately managed accounts and other investment solutions for individuals and institutions.

Strive's investment approach emphasizes corporate governance, energy security, domestic economic growth and what it describes as shareholder-focused capitalism. Its products are intended to give investors exposure to selected sectors, industries and broader investment themes through professionally managed portfolios.

The company was founded in 2022 by Vivek Ramaswamy.

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