Strategy (NASDAQ:MSTR) Given New $213.00 Price Target at Mizuho

Key Points

• Mizuho cut its price target on Strategy from $265 to $213 while keeping an “outperform” rating, implying significant upside from the current share price.
• Other analysts remain mixed, but the overall Street view is still Moderate Buy with a consensus price target of $275.40 after several recent target cuts and rating changes.
• Strategy’s stock is highly volatile and closely tied to Bitcoin; the article highlights recent BTC-related selling, insider share sales, and concerns that the company may need to monetize holdings more often if crypto prices weaken.

Strategy (NASDAQ:MSTR - Get Free Report) had its price objective reduced by research analysts at Mizuho from $265.00 to $213.00 in a report released on Tuesday,Benzinga reports. The brokerage presently has an "outperform" rating on the software maker's stock. Mizuho's target price would suggest a potential upside of 111.37% from the stock's current price.

A number of other analysts also recently issued reports on the stock. Monness Crespi & Hardt reissued a "neutral" rating on shares of Strategy in a report on Tuesday, June 2nd. TD Cowen lowered their target price on shares of Strategy from $400.00 to $260.00 and set a "buy" rating on the stock in a report on Tuesday, June 30th. Zacks Research downgraded shares of Strategy from a "hold" rating to a "strong sell" rating in a research report on Monday, May 18th. Benchmark reiterated a "buy" rating on shares of Strategy in a research note on Tuesday, June 2nd. Finally, B. Riley Financial increased their price target on Strategy from $200.00 to $215.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Strategy has a consensus rating of "Moderate Buy" and a consensus price target of $275.40.

Strategy Price Performance

MSTR stock opened at $100.77 on Tuesday. Strategy has a fifty-two week low of $81.81 and a fifty-two week high of $457.22. 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 stock has a market capitalization of $35.31 billion, a price-to-earnings ratio of -2.51 and a beta of 3.54. The business's fifty day moving average price is $140.24 and its two-hundred day moving average price is $143.32.

Strategy (NASDAQ:MSTR - Get Free Report) last announced 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). Strategy had a negative net margin of 2,482.01% and a negative return on equity of 26.97%. The business had revenue of $124.30 million during the quarter, compared to the consensus estimate of $120.75 million. During the same period in the previous year, the firm posted ($16.49) EPS. The company's revenue was up 11.9% compared to the same quarter last year. On average, equities analysts anticipate that Strategy will post 116.7 earnings per share for the current year.

Insider Activity

In related news, Director Jarrod M. Patten sold 15,050 shares of the firm's stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $154.94, for a total value of $2,331,847.00. Following the sale, the director directly owned 28,000 shares of the company's stock, valued at $4,338,320. This trade represents a 34.96% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Phong Le sold 93,738 shares of Strategy stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $118.73, for a total value of $11,129,512.74. Following the completion of the transaction, the chief executive officer owned 119,925 shares in the company, valued at approximately $14,238,695.25. This represents a 43.87% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have acquired 11,166 shares of company stock worth $1,014,265 and have sold 192,222 shares worth $25,018,037. Corporate insiders own 6.49% of the company's stock.

Hedge Funds Weigh In On Strategy

Institutional investors have recently added to or reduced their stakes in the stock. Schroder Investment Management Group increased its position in Strategy by 21.0% during the 3rd quarter. Schroder Investment Management Group now owns 118,478 shares of the software maker's stock valued at $38,175,000 after purchasing an additional 20,536 shares during the period. Van ECK Associates Corp lifted its position in shares of Strategy by 46.1% in the 3rd quarter. Van ECK Associates Corp now owns 204,506 shares of the software maker's stock worth $65,894,000 after purchasing an additional 64,482 shares during the period. Daviman Financial LLC acquired a new position in shares of Strategy in the 4th quarter worth approximately $1,013,000. Legal & General Group Plc boosted its stake in shares of Strategy by 7.5% in the 3rd quarter. Legal & General Group Plc now owns 1,255,770 shares of the software maker's stock valued at $404,622,000 after purchasing an additional 87,333 shares during the last quarter. Finally, Capital Research Global Investors boosted its stake in shares of Strategy by 33.6% in the 3rd quarter. Capital Research Global Investors now owns 4,205,258 shares of the software maker's stock valued at $1,354,982,000 after purchasing an additional 1,057,804 shares during the last quarter. 59.84% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy says the Bitcoin sale was used to fund preferred dividends and maintain a large $2.55 billion cash reserve, easing immediate balance-sheet concerns. Strategy Sells 3,588 Bitcoin for $216 Million to Fund Preferred Dividends
• Positive Sentiment: Bitcoin later rebounded after the selloff, which may help stabilize sentiment around MSTR given its close link to BTC prices. Bitcoin Rebounds to $64,000 After Strategy Selloff as Options and ETFs Turn Bullish
• Neutral Sentiment: Some analysts argued the move reflects a new capital-allocation framework rather than a broken strategy, but it increases investor focus on MSTR’s funding model and mNAV math. Strategy (MSTR) Approves $1.25 Billion In Bitcoin Sales To Fund Buybacks
• Negative Sentiment: The large Bitcoin sale and Q2 digital-asset loss raised fears that Strategy may be forced to monetize holdings more often, which could pressure the stock if Bitcoin weakens again. Strategy is losing a lot of money on bitcoin. Here’s why it’s selling anyway.
• Negative Sentiment: Commentary comparing Strategy’s situation to FTX and calling its Bitcoin math “broken” is adding to the bearish narrative around MSTR. Michael Saylor's Strategy's Situation Feels 'Eerily Similar' to FTX Collapse, Says Crypto Analyst

Strategy Company Profile

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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