Strategy Inc (NASDAQ:MSTR) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Strategy Inc. has a consensus analyst rating of “Moderate Buy” from 17 brokerage firms, with 11 buy ratings, 5 hold ratings, and 1 strong buy. The average 12-month price target is about $321.86.
• The company reported a much larger-than-expected quarterly loss, posting EPS of -$38.25 versus expectations of -$0.86, even though revenue of $124.3 million slightly topped estimates and rose 11.9% year over year.
• Recent news around Strategy centers on its $1.5 billion debt buyback and continued Bitcoin-focused funding strategy, while concerns remain about Bitcoin volatility, possible BTC sales, and institutional selling such as Jane Street reducing its stake.

Shares of Strategy Inc (NASDAQ:MSTR - Get Free Report) have received a consensus rating of "Moderate Buy" from the seventeen ratings firms that are covering the company, Marketbeat reports. Five equities research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the company. The average 12 month price objective among analysts that have updated their coverage on the stock in the last year is $321.8571.

A number of research firms have issued reports on MSTR. Wall Street Zen lowered shares of Strategy from a "hold" rating to a "sell" rating in a report on Sunday, February 8th. B. Riley Financial increased their price objective on shares of Strategy from $200.00 to $215.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. HC Wainwright reissued a "buy" rating on shares of Strategy in a research report on Friday, February 6th. Benchmark dropped their price objective on shares of Strategy from $705.00 to $570.00 and set a "buy" rating on the stock in a research report on Wednesday, May 6th. Finally, TD Cowen reissued a "buy" rating and issued a $395.00 price objective (up from $385.00) on shares of Strategy in a research report on Thursday, May 7th.

Strategy Price Performance

Strategy stock opened at $177.42 on Friday. The firm has a market cap of $62.18 billion, a PE ratio of -4.42 and a beta of 3.59. Strategy has a 52-week low of $104.17 and a 52-week high of $457.22. 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's 50 day moving average is $150.11 and its two-hundred day moving average is $164.56.

Strategy (NASDAQ:MSTR - Get Free Report) last released its 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). The business had revenue of $124.30 million for the quarter, compared to analyst estimates 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 quarterly revenue was up 11.9% compared to the same quarter last year. During the same quarter last year, the company earned ($16.49) earnings per share. On average, research analysts expect that Strategy will post 116.7 EPS for the current fiscal year.

More Strategy News

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy announced a $1.5 billion debt buyback, which could reduce leverage and simplify the capital structure. The company is also continuing to use its preferred-stock funding model to support further Bitcoin purchases. Article Title
• Positive Sentiment: Supportive headlines from the crypto sector, including renewed optimism after U.S. crypto legislation advanced, helped lift sentiment around Bitcoin-linked stocks earlier in the week. Article Title
• Neutral Sentiment: Institutional and political-ownership headlines, including reports that the Trump trust bought MSTR shares in Q1, may provide some validation for the stock, but they do not change Strategy’s operating fundamentals. Article Title
• Negative Sentiment: Several reports say Jane Street sharply reduced its MSTR position, a sign that a major institutional holder is becoming less enthusiastic about the stock. Article Title
• Negative Sentiment: Prediction-market odds that Strategy could sell Bitcoin this year rose after Michael Saylor said BTC sales could be used to cover dividends, challenging the company’s long-standing “never sell” narrative and pressuring investor sentiment. Article Title
• Negative Sentiment: Analysts and commentators flagged fair-value pressure, Bitcoin volatility, and unrealized losses as ongoing balance-sheet risks, reinforcing concerns that MSTR remains highly exposed to crypto swings. Article Title

Insider Activity at Strategy

In other news, Director Jarrod M. Patten sold 2,750 shares of the company's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $191.59, for a total value of $526,872.50. Following the completion of the transaction, the director owned 28,000 shares in the company, valued at approximately $5,364,520. This represents a 8.94% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Over the last quarter, insiders have sold 29,202 shares of company stock valued at $4,421,564. Corporate insiders own 6.49% of the company's stock.

Hedge Funds Weigh In On Strategy

Several large investors have recently bought and sold shares of the stock. McIlrath & Eck LLC boosted its stake in Strategy by 3.8% in the second quarter. McIlrath & Eck LLC now owns 1,246 shares of the software maker's stock valued at $504,000 after acquiring an additional 46 shares in the last quarter. Mill Creek Capital Advisors LLC boosted its stake in Strategy by 2.8% in the third quarter. Mill Creek Capital Advisors LLC now owns 1,748 shares of the software maker's stock valued at $563,000 after acquiring an additional 48 shares in the last quarter. Stonehage Fleming Financial Services Holdings Ltd boosted its stake in Strategy by 31.3% in the third quarter. Stonehage Fleming Financial Services Holdings Ltd now owns 210 shares of the software maker's stock valued at $68,000 after acquiring an additional 50 shares in the last quarter. Angeles Wealth Management LLC boosted its stake in Strategy by 6.2% in the third quarter. Angeles Wealth Management LLC now owns 893 shares of the software maker's stock valued at $288,000 after acquiring an additional 52 shares in the last quarter. Finally, Banco Bilbao Vizcaya Argentaria S.A. boosted its stake in Strategy by 0.6% in the third quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 9,533 shares of the software maker's stock valued at $3,061,000 after acquiring an additional 53 shares in the last quarter. Institutional investors and hedge funds own 59.84% of the company's 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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