Strive (NASDAQ:ASST) Sees Large Volume Increase - Time to Buy?

Key Points

• Strive’s trading volume rose 7% to about 5.67 million shares, while the stock fell 10.6% to roughly $25.21. Its extreme volatility is reflected in a beta of 13.26.
• The company purchased approximately 3,311 Bitcoin for $280 million, reinforcing its cryptocurrency-focused treasury strategy. However, Strive remains exposed to Bitcoin-price volatility and recently reported a significant quarterly loss.
• Strive plans to offer 5 million shares of 15% Series A SATS preferred stock to fund additional Bitcoin purchases; the high dividend could pressure cash flows and increase claims on future value. Analysts remain broadly positive, with a “Moderate Buy” consensus and a $33.20 average price target.

Strive, Inc. (NASDAQ:ASST - Get Free Report) shares saw unusually-high trading volume on Wednesday. Approximately 5,674,659 shares were traded during trading, an increase of 7% from the previous session's volume of 5,305,507 shares. The stock last traded at $25.2130 and had previously closed at $27.59.

Key Stories Impacting Strive

Here are the key news stories impacting Strive this week:

• Positive Sentiment: Strive purchased approximately 3,311 Bitcoin for about $280 million, its largest acquisition in months. The purchase reportedly made Strive the largest Bitcoin buyer among publicly traded companies during the recent period, surpassing Strategy (formerly MicroStrategy). This could increase the value of Strive’s Bitcoin holdings and strengthen its position as a cryptocurrency-focused treasury company. Strive Buys $280 Million in Bitcoin
• Positive Sentiment: The company’s aggressive accumulation strategy, including its ability to use warrant-related cash to buy Bitcoin, is attracting favorable attention from Bitcoin advocates and could support investor interest if Bitcoin prices continue rising. Saylor Cheers Strive’s Bitcoin Purchase
• Neutral Sentiment: Strive plans to offer 5 million shares of 15% Series A Perpetual SATS Preferred Stock. Proceeds are intended to support additional Bitcoin purchases, but the offering remains subject to market conditions and other closing requirements. Strive Announces SATS Offering
• Negative Sentiment: The proposed 15% dividend makes the financing expensive and could pressure future cash flows. Issuing preferred shares also expands the capital structure and may reduce the portion of future value attributable to existing common shareholders, even though it is not conventional common-stock dilution. Strive Plans SATS Preferred Stock IPO
• Negative Sentiment: Investors remain exposed to Bitcoin-price risk, financing risk and Strive’s historically sharp trading swings. The company also recently reported a sizable earnings loss, underscoring that its investment case is currently driven more by Bitcoin exposure and capital-market activity than operating profitability.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on ASST. Weiss Ratings reiterated a "sell (d-)" rating on shares of Strive in a research report on Monday. B. Riley Financial increased their price target on Strive from $26.00 to $33.00 and gave the company a "buy" rating in a research note on Tuesday, September 22nd. HC Wainwright cut their price target on Strive from $37.00 to $36.00 and set a "buy" rating on the stock in a research note on Tuesday, August 11th. TD Cowen restated a "buy" rating on shares of Strive in a research report on Monday, September 21st. Finally, Maxim Group set a $37.00 price objective on Strive and gave the stock a "buy" rating in a research note on Monday. Five equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Strive currently has an average rating of "Moderate Buy" and a consensus price target of $33.20.

Strive Trading Down 10.6%

The business has a 50 day moving average of $23.64 and a 200-day moving average of $17.29. The firm has a market capitalization of $2.11 billion, a P/E ratio of -2.82 and a beta of 13.26.

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

Insider Buying and Selling

In other news, insider Brian Beirne sold 20,077 shares of the firm's stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $31.33, for a total value of $629,012.41. Following the completion of the transaction, the insider owned 41,425 shares in the company, valued at $1,297,845.25. This trade represents a 32.64% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jonathan R. Macey sold 6,700 shares of Strive stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $30.32, for a total value of $203,144.00. Following the completion of the sale, the director directly owned 8,115 shares in the company, valued at approximately $246,046.80. This represents a 45.22% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 101,409 shares of company stock valued at $3,166,897 over the last ninety days. Insiders own 2.71% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of ASST. State Street Corp bought a new stake in Strive during the second quarter worth $16,395,000. Corient Private Wealth LLC bought a new position in shares of Strive in the 4th quarter valued at about $388,000. Squarepoint Ops LLC bought a new position in shares of Strive in the 2nd quarter valued at about $1,394,000. J. Derek Lewis & Associates Inc. bought a new position in shares of Strive in the 4th quarter valued at about $71,000. Finally, TRU Independence Asset Management 2 LLC acquired a new position in shares of Strive during the 4th quarter worth about $63,000. 5.52% of the stock is owned by institutional investors and hedge funds.

Strive Company Profile

Strive, Inc is a financial services company operating under the Strive brand. Its business is focused on providing investment management and related financial products, with an emphasis on long-term capital preservation, shareholder rights and policies intended to promote value creation for investors.

The company's activities include asset management and the development of investment vehicles designed to give clients exposure to selected investment strategies and markets. Strive has also pursued a Bitcoin-focused treasury strategy, making digital assets an important part of its corporate and investment positioning.

Strive's current public-company structure resulted from the combination of Strive Enterprises and Asset Entities Inc, a social media and digital marketing company whose Nasdaq-listed shares traded under the symbol ASST.

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