Strategy (NASDAQ:MSTR) Cut to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Strategy (MSTR) from a "strong‑buy" to a "hold," though the Street consensus remains a Moderate Buy with a $368.21 average target.
• The company has resumed bitcoin accumulation — including a roughly $330 million purchase (and reports of ~44,377 BTC bought in March) — which supports the corporate‑treasury strategy but raises crypto‑exposure risk.
• Strategy reported a Q1 loss of ($42.93) EPS while revenues modestly beat estimates at $122.99M, and disclosed an approximately $14.5 billion unrealized loss on its bitcoin holdings, amplifying earnings volatility.

Strategy (NASDAQ:MSTR - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Tuesday,Zacks.com reports.

Several other research firms have also recently commented on MSTR. TD Cowen restated a "buy" rating on shares of Strategy in a report on Thursday, January 15th. Citigroup decreased their price target on shares of Strategy from $485.00 to $325.00 and set a "buy" rating for the company in a report on Monday, December 22nd. Cantor Fitzgerald started coverage on shares of Strategy in a report on Tuesday, January 27th. They set an "overweight" rating for the company. Wall Street Zen cut shares of Strategy from a "hold" rating to a "sell" rating in a report on Sunday, February 8th. Finally, HC Wainwright restated a "buy" rating on shares of Strategy in a report on Friday, February 6th. 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. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $368.21.

Strategy Stock Performance

MSTR stock opened at $128.30 on Tuesday. The company has a debt-to-equity ratio of 0.18, a quick ratio of 5.62 and a current ratio of 5.62. The stock has a market cap of $42.82 billion, a P/E ratio of -6.97 and a beta of 3.55. The firm has a 50 day simple moving average of $132.85 and a 200 day simple moving average of $190.47. Strategy has a 52 week low of $104.17 and a 52 week high of $457.22.

Strategy (NASDAQ:MSTR - Get Free Report) last posted its quarterly earnings results on Thursday, February 5th. The software maker reported ($42.93) EPS for the quarter, missing the consensus estimate of $46.02 by ($88.95). The company had revenue of $122.99 million for the quarter, compared to analyst estimates of $117.42 million. Strategy had a negative return on equity of 8.74% and a negative net margin of 806.34%.The business's revenue for the quarter was up 1.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($3.03) earnings per share.

Insider Transactions at Strategy

In other Strategy news, CAO Jeanine Montgomery sold 470 shares of Strategy stock in a transaction that occurred on Tuesday, March 24th. The shares were sold at an average price of $138.33, for a total value of $65,015.10. Following the completion of the sale, the chief accounting officer directly owned 10,423 shares in the company, valued at $1,441,813.59. The trade was a 4.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Andrew Kang sold 2,373 shares of Strategy stock in a transaction that occurred on Tuesday, March 24th. The shares were sold at an average price of $138.33, for a total transaction of $328,257.09. Following the completion of the sale, the chief financial officer owned 26,772 shares of the company's stock, valued at $3,703,370.76. This trade represents a 8.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders acquired 8,509 shares of company stock valued at $1,128,827 and sold 10,052 shares valued at $1,375,602. 8.46% of the stock is owned by insiders.

Institutional Trading of Strategy

A number of institutional investors have recently added to or reduced their stakes in MSTR. J. Derek Lewis & Associates Inc. acquired a new stake in shares of Strategy in the fourth quarter worth $1,026,000. World Investment Advisors lifted its stake in shares of Strategy by 27.5% in the fourth quarter. World Investment Advisors now owns 9,154 shares of the software maker's stock worth $1,391,000 after buying an additional 1,977 shares during the last quarter. ARP Global Capital Ltd acquired a new stake in shares of Strategy in the fourth quarter worth $4,234,000. Corient Private Wealth LLC lifted its stake in shares of Strategy by 516.7% in the fourth quarter. Corient Private Wealth LLC now owns 72,801 shares of the software maker's stock worth $11,062,000 after buying an additional 60,997 shares during the last quarter. Finally, Hsbc Holdings PLC lifted its stake in shares of Strategy by 17.4% in the fourth quarter. Hsbc Holdings PLC now owns 370,057 shares of the software maker's stock worth $56,521,000 after buying an additional 54,840 shares during the last quarter. 59.84% of the stock is currently owned by institutional investors and hedge funds.

Key Strategy News

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Rising bitcoin price: Bitcoin moved back above the $70k level after reports of a U.S.–Iran cease-fire, lifting crypto-linked equities (including MSTR) as investors chase risk assets. Bitcoin Surges Above $70,000. It’s a Key Level for the Crypto.
• Positive Sentiment: Company resumed buying: Strategy disclosed a fresh ~$330 million bitcoin purchase, signaling management’s continued commitment to accumulating BTC and supporting investor sentiment. Strategy Resumes Bitcoin Buying With $330 Million Purchase
• Positive Sentiment: STRC adoption and large March buys: Reports say Strategy’s STRC digital credit product set volume records and the company bought ~44,377 BTC in March (driving its corporate treasury accumulation narrative); STRC reached rapid scale and is cited as a growth driver. Bitcoin Treasuries Report: Strategy Buys 44,377 BTC in March 2026 as STRC Volume Hits $746M Record
• Neutral Sentiment: Analyst support: BTIG reaffirmed a buy rating (and media coverage highlights buy-side interest), which can attract short-term flows but doesn’t remove macro/crypto price risk. Why Strategy Stock (MSTR) Is Rising Today — and What BTIG Analyst Sees Ahead
• Neutral Sentiment: Brokerage commentary: Recent media/analyst pieces recommend adding MSTR to portfolios based on bitcoin exposure and management’s strategy — useful context, but recommendations vary and often hinge on BTC outlook. Brokers Suggest Investing in Strategy (MSTR): Read This Before Placing a Bet
• Negative Sentiment: Large unrealized losses remain prominent: Strategy reported an approximately $14.5B unrealized loss on its bitcoin holdings for Q1 — this produces headline volatility under fair-value accounting and amplifies earnings swings. Strategy (MSTR) Bitcoin Portfolio Bleeds Red with $14.46 Billion Paper Loss
• Negative Sentiment: Execution and funding risk: Several articles question sustainability — the capital strategy depends on access to funding and continued BTC price appreciation; any sustained crypto pullback or funding strain could pressure the shares. Strategy's Capital Strategy Drives BTC Growth: Is Upside Sustainable?

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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