Strategy (NASDAQ:MSTR) Director Sells $1,071,115.00 in Stock

Key Points

• Strategy Director Jarrod Patten sold 7,250 shares on May 28 for about $1.07 million, cutting his holdings by 20.57% to 28,000 shares.
• MSTR shares fell 5.9% in recent trading, with the stock down to $149.78 amid heavy volume and well below both its 50-day and 200-day moving averages.
• Investor sentiment remains pressured by Strategy’s rare sale of 32 BTC to help fund preferred dividends, ongoing equity issuance concerns, and fears that the company may need to lean more on Bitcoin to support its capital structure.

Strategy Inc (NASDAQ:MSTR - Get Free Report) Director Jarrod Patten sold 7,250 shares of the business's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $147.74, for a total value of $1,071,115.00. Following the transaction, the director owned 28,000 shares in the company, valued at approximately $4,136,720. This represents a 20.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link.

Strategy Stock Down 5.9%

Shares of MSTR traded down $9.31 during midday trading on Monday, reaching $149.78. 17,680,271 shares of the company were exchanged, compared to its average volume of 20,387,682. The stock has a 50-day moving average price of $154.16 and a 200-day moving average price of $156.86. The company has a market cap of $52.49 billion, a price-to-earnings ratio of -3.73 and a beta of 3.59. Strategy Inc has a 1-year low of $104.17 and a 1-year high of $457.22. The company has a current ratio of 6.05, a quick ratio of 6.05 and a debt-to-equity ratio of 0.22.

Strategy (NASDAQ:MSTR - Get Free Report) last issued 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 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%.The company's revenue for the quarter was up 11.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($16.49) EPS. Research analysts expect that Strategy Inc will post 116.7 earnings per share for the current year.

Key Strategy News

Here are the key news stories impacting Strategy this week:

• Negative Sentiment: Strategy sold 32 BTC for about $2.5 million between May 26 and May 31 to help fund preferred stock dividend payments, which raised concerns that the company may need to use Bitcoin more actively to support its capital structure. CNBC article
• Negative Sentiment: The sale challenged Michael Saylor’s long-held “never sell Bitcoin” narrative, which appears to have shaken confidence in Strategy’s treasury strategy and pressured the stock. MarketWatch article
• Negative Sentiment: Investors also reacted to ongoing at-the-market equity issuance, which adds dilution concerns on top of the Bitcoin sale and reinforces worries about financing preferred dividends and other obligations. Quiver Quantitative article
• Neutral Sentiment: Despite the selloff, the company still holds 843,706 BTC, so MSTR remains highly leveraged to Bitcoin’s price direction and broader crypto sentiment. Cointelegraph article

Analyst Ratings Changes

A number of brokerages have commented on MSTR. TD Cowen boosted their price objective on Strategy from $395.00 to $400.00 and gave the stock a "buy" rating in a research note on Tuesday, May 19th. B. Riley Financial boosted their price objective on Strategy from $200.00 to $215.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Strategy in a research report on Friday, March 27th. Canaccord Genuity Group set a $224.00 target price on Strategy and gave the stock a "buy" rating in a research report on Thursday, May 7th. Finally, Benchmark dropped their target price on Strategy from $705.00 to $570.00 and set a "buy" rating on the stock in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $318.29.

Institutional Trading of Strategy

A number of hedge funds and other institutional investors have recently modified their holdings of MSTR. Federated Hermes Inc. bought a new stake in Strategy in the second quarter valued at about $396,000. Cary Street Partners Financial LLC bought a new stake in Strategy in the second quarter valued at about $202,000. Sei Investments Co. increased its holdings in Strategy by 136.0% in the second quarter. Sei Investments Co. now owns 39,905 shares of the software maker's stock valued at $16,125,000 after buying an additional 22,999 shares during the last quarter. The Manufacturers Life Insurance Company increased its holdings in Strategy by 59.4% in the second quarter. The Manufacturers Life Insurance Company now owns 19,215 shares of the software maker's stock valued at $7,767,000 after buying an additional 7,158 shares during the last quarter. Finally, Peapack Gladstone Financial Corp increased its holdings in Strategy by 22.0% in the second quarter. Peapack Gladstone Financial Corp now owns 3,055 shares of the software maker's stock valued at $1,235,000 after buying an additional 550 shares during the last quarter. 59.84% of the stock is owned by hedge funds and other institutional investors.

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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