Strategy Inc (NASDAQ:MSTR) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Strategy Inc. has a consensus analyst rating of “Moderate Buy” from 16 covering firms, with an average 12-month price target of about $313.93.
• Recent insider activity has leaned toward selling, including transactions by the CAO and a director; insiders sold 198,474 shares worth about $25.9 million over the last quarter.
• Despite mixed financial results, the company’s latest update highlighted a restarted Bitcoin-buying strategy and shareholder approval of preferred dividend changes, both of which may support its crypto-focused funding approach.

Strategy Inc (NASDAQ:MSTR - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the sixteen ratings firms that are presently covering the firm, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation, eleven have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $313.9286.

A number of analysts have issued reports on MSTR shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Strategy in a research note on Friday, March 27th. Cantor Fitzgerald reissued an "overweight" rating on shares of Strategy in a research report on Monday, May 11th. TD Cowen upped their price objective on shares of Strategy from $395.00 to $400.00 and gave the company a "buy" rating in a report on Tuesday, May 19th. Canaccord Genuity Group set a $163.00 price objective on shares of Strategy and gave the stock a "buy" rating in a research report on Wednesday, June 3rd. Finally, Monness Crespi & Hardt reaffirmed a "neutral" rating on shares of Strategy in a research note on Tuesday, June 2nd.

Insider Activity

In other news, CAO Jeanine Montgomery sold 354 shares of the firm's stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $123.84, for a total transaction of $43,839.36. Following the completion of the sale, the chief accounting officer owned 11,209 shares in the company, valued at $1,388,122.56. This trade represents a 3.06% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jarrod M. Patten sold 15,050 shares of Strategy stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $154.94, for a total transaction of $2,331,847.00. Following the sale, the director directly owned 28,000 shares in the company, valued at approximately $4,338,320. The trade was a 34.96% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 198,474 shares of company stock worth $25,937,777 over the last quarter. 6.49% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Strategy

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. grew its holdings 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 purchasing an additional 4,178,611 shares during the period. Capital International Investors raised its holdings 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 buying an additional 5,600,573 shares during the period. Capital Research Global Investors lifted its position in Strategy by 66.7% in the fourth quarter. Capital Research Global Investors now owns 7,008,535 shares of the software maker's stock valued at $1,064,963,000 after buying an additional 2,803,277 shares during the last quarter. State Street Corp lifted its position in Strategy by 2.3% in the fourth quarter. State Street Corp now owns 6,127,301 shares of the software maker's stock valued at $931,043,000 after buying an additional 138,253 shares during the last quarter. Finally, Amundi boosted its stake in Strategy by 373.7% during the fourth quarter. Amundi now owns 4,790,702 shares of the software maker's stock worth $727,947,000 after buying an additional 3,779,340 shares during the period. Institutional investors and hedge funds own 59.84% of the company's stock.

Strategy Price Performance

MSTR stock opened at $117.02 on Wednesday. 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 business has a 50 day simple moving average of $153.36 and a 200-day simple moving average of $153.01. The firm has a market capitalization of $41.01 billion, a PE ratio of -2.91 and a beta of 3.49. Strategy has a 1 year low of $104.17 and a 1 year high of $457.22.

Strategy (NASDAQ:MSTR - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The software maker reported ($38.25) EPS for the quarter, missing analysts' consensus estimates of ($0.86) by ($37.39). The company 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%.The business's quarterly revenue was up 11.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($16.49) EPS. Equities research analysts anticipate that Strategy will post 116.7 earnings per share for the current fiscal year.

Strategy News Summary

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy restarted Bitcoin purchases, buying 1,550 BTC for roughly $101 million after selling a small amount the prior week, which reassured investors that the company is still committed to growing its Bitcoin holdings. Strategy (MSTR) Restarts Bitcoin Purchases After Selling, Buys 1,550 BTC for $101 Million
• Positive Sentiment: Shareholders approved changes to preferred dividends, helping support Strategy’s funding structure and easing concerns about how the company will manage payouts while continuing to accumulate Bitcoin. Strategy Shareholders Approve Changes to Preferred Dividends
• Positive Sentiment: Several bullish commentaries said the renewed buying and large Bitcoin treasury could support a rebound in MSTR if Bitcoin stabilizes, with some analysts arguing the latest purchase restores confidence after the selloff. Analyst predicts 214% surge for battered 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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