Strategy (NASDAQ:MSTR) Lowered to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research downgraded Strategy (NASDAQ:MSTR) from “hold” to “strong sell,” adding to a mixed analyst backdrop that still leaves the stock with a consensus “Moderate Buy” rating and an average price target of $322.21.
• Strategy’s latest quarter showed heavy losses but higher revenue: it posted EPS of -$38.25 versus expectations of -$0.86, while revenue came in at $124.3 million, above estimates and up 11.9% from a year earlier.
• The company remains closely tied to Bitcoin-driven volatility, with ongoing insider selling and elevated beta highlighting risk even as it continues expanding its crypto treasury and drawing bullish price-target updates from some firms.

Strategy (NASDAQ:MSTR - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Monday,Zacks.com reports.

Several other brokerages have also weighed in on MSTR. Weiss Ratings reissued 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. Wall Street Zen lowered Strategy from a "hold" rating to a "sell" rating in a research report on Sunday, February 8th. Texas Capital raised Strategy to a "strong-buy" rating in a research report on Thursday, March 19th. Finally, Benchmark cut 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 issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $322.21.

Strategy Stock Performance

Shares of MSTR opened at $164.63 on Monday. The stock has a 50-day simple moving average of $151.27 and a 200-day simple moving average of $162.03. The company has a debt-to-equity ratio of 0.22, a quick ratio of 6.05 and a current ratio of 6.05. The stock has a market capitalization of $57.69 billion, a PE ratio of -4.10 and a beta of 3.59. 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) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.86) by ($37.39). The company had revenue of $124.30 million during the quarter, compared to analysts' expectations of $120.75 million. Strategy had a negative net margin of 2,482.01% and a negative return on equity of 26.97%. 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. On average, analysts predict that Strategy will post 116.7 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Strategy news, CFO Andrew Kang sold 2,373 shares of Strategy stock in a transaction that occurred on Tuesday, March 24th. The stock was sold at an average price of $138.33, for a total transaction of $328,257.09. Following the transaction, the chief financial officer owned 26,772 shares of the company's stock, valued at $3,703,370.76. The trade was a 8.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Jarrod M. Patten sold 3,400 shares of Strategy stock in a transaction that occurred on Monday, April 13th. The stock was sold at an average price of $130.65, for a total value of $444,210.00. Following the transaction, the director directly owned 28,000 shares in the company, valued at approximately $3,658,200. This trade represents a 10.83% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 30,702 shares of company stock valued at $4,707,839 over the last quarter. Company insiders own 6.49% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of MSTR. Fideuram Asset Management Ireland dac acquired a new position in shares of Strategy in the fourth quarter valued at approximately $25,000. Westfuller Advisors LLC acquired a new position in shares of Strategy in the first quarter valued at approximately $25,000. Dogwood Wealth Management LLC increased its holdings in shares of Strategy by 280.0% in the fourth quarter. Dogwood Wealth Management LLC now owns 190 shares of the software maker's stock valued at $29,000 after purchasing an additional 140 shares during the period. Wilkerson Advisory Group LLC acquired a new position in shares of Strategy in the fourth quarter valued at approximately $30,000. Finally, Pilgrim Partners Asia Pte Ltd acquired a new position in shares of Strategy in the third quarter valued at approximately $32,000. Institutional investors and hedge funds own 59.84% of the company's stock.

Strategy News Roundup

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy keeps expanding its Bitcoin treasury, buying 24,869 BTC for about $2.01 billion and bringing total holdings to 843,738 BTC, reinforcing its role as the biggest public Bitcoin holder. Article Title
• Positive Sentiment: TD Cowen raised its price target on MSTR to $400 and kept a Buy rating, signaling continued Wall Street confidence in the Bitcoin accumulation strategy. Article Title
• Positive Sentiment: Management’s comments that Strategy could eventually use Bitcoin sales to support dividends or debt obligations are also being viewed by some as a way to broaden the investor base and add a potential income catalyst. Article Title
• Neutral Sentiment: Insider selling added to the news flow, with director Jarrod Patten selling 1,500 shares; while not huge, it can still make some investors cautious. Article Title
• Negative Sentiment: Bitcoin’s sharp pullback, ETF outflows, and heavy liquidations are pressuring MSTR because the stock tends to move with crypto prices and investor risk appetite. Article Title
• Negative Sentiment: Some market coverage framed the latest Bitcoin buying spree as increasing balance-sheet risk, especially since Strategy is now willing to consider asset sales to meet obligations. Article Title

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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