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

Key Points

• Zacks Research downgraded Strategy from “hold” to “strong sell,” although the broader analyst consensus remains “moderate buy” with an average price target of $242.81.
• Strategy shares opened at $98.37, well below their 12-month high of $414.36. The company reported a quarterly loss of $24.45 per share, far worse than the expected $2.19 loss, while revenue was nearly in line with estimates.
• Insiders have been net sellers: they sold approximately $23.1 million of stock over the past 90 days, compared with about $1.0 million in purchases; institutional investors own 59.84% of the shares.

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 note issued to investors on Tuesday,Zacks.com reports.

Several other research analysts have also recently issued reports on the stock. TD Cowen dropped 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. Credit Suisse Group set a $250.00 price target on shares of Strategy in a report on Tuesday, June 30th. Cantor Fitzgerald dropped their price objective on shares of Strategy from $212.00 to $186.00 and set an "overweight" rating on the stock in a research note on Monday. Weiss Ratings lowered shares of Strategy from a "hold (c)" rating to a "sell (d)" rating in a report on Tuesday. Finally, Citigroup reissued a "buy" rating and issued a $136.00 price objective (down from $260.00) on shares of Strategy in a research note on Tuesday, June 30th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $242.81.

Strategy Price Performance

Shares of MSTR stock opened at $98.37 on Tuesday. Strategy has a twelve month low of $81.81 and a twelve month high of $414.36. The stock has a market capitalization of $34.47 billion, a price-to-earnings ratio of -1.01 and a beta of 3.54. The stock has a fifty day simple moving average of $106.67 and a two-hundred day simple moving average of $133.20. The company has a current ratio of 5.39, a quick ratio of 6.05 and a debt-to-equity ratio of 0.22.

Strategy (NASDAQ:MSTR - Get Free Report) last posted its quarterly earnings results on Friday, July 31st. The software maker reported ($24.45) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($2.19) by ($22.26). The firm had revenue of $122.37 million for the quarter, compared to the consensus estimate of $122.90 million. Strategy had a negative return on equity of 74.18% and a negative net margin of 6,102.95%.Strategy's quarterly revenue was up 6.9% compared to the same quarter last year. During the same period in the previous year, the company posted $32.52 EPS. On average, analysts predict that Strategy will post 57.47 EPS for the current fiscal year.

Insider Transactions at Strategy

In related news, Director Jarrod M. Patten sold 15,050 shares of the business's stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $154.94, for a total transaction of $2,331,847.00. Following the completion of the transaction, the director owned 28,000 shares in the company, valued at $4,338,320. The trade was a 34.96% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Andrew Kang sold 33,062 shares of the firm's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $118.73, for a total transaction of $3,925,451.26. Following the completion of the sale, the chief financial officer owned 68,733 shares of the company's stock, valued at approximately $8,160,669.09. This trade represents a 32.48% decrease in their ownership of the stock. 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 90 days, insiders have bought 11,166 shares of company stock valued at $1,014,265 and have sold 181,422 shares valued at $23,144,128. Insiders own 6.49% of the company's stock.

Institutional Investors Weigh In On Strategy

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MSTR. Fideuram Asset Management Ireland dac purchased a new position in shares of Strategy in the 4th quarter valued at approximately $25,000. Westfuller Advisors LLC purchased a new position in shares of Strategy in the first quarter worth $25,000. Dogwood Wealth Management LLC lifted its stake in shares of Strategy by 280.0% during the fourth quarter. Dogwood Wealth Management LLC now owns 190 shares of the software maker's stock worth $29,000 after buying an additional 140 shares during the period. Wilkerson Advisory Group LLC acquired a new stake in shares of Strategy during the fourth quarter worth $30,000. Finally, Binnacle Investments Inc grew its holdings in shares of Strategy by 492.9% during the second quarter. Binnacle Investments Inc now owns 83 shares of the software maker's stock valued at $34,000 after buying an additional 69 shares during the last quarter. 59.84% of the stock is currently owned by hedge funds and other institutional investors.

Strategy News Summary

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Executive Chairman Michael Saylor reiterated Strategy’s ambition to become the world’s largest company by market capitalization by expanding its Bitcoin holdings and using equity, debt and digital-credit markets to grow its balance sheet. CEO Phong Le also said Strategy expects to outperform Bitcoin during the next bull market, supporting the long-term investment thesis. Michael Saylor Says Strategy Aims to Be the World’s Biggest Company by Market Cap
• Neutral Sentiment: Strategy-linked wallets transferred approximately 1,030 BTC, worth about $66 million. No additional sale was confirmed, but the movement is attracting investor attention after the company recently sold 1,638 BTC for roughly $105 million. Strategy Transfers $66 Million in Bitcoin as Market Stays Uncertain
• Negative Sentiment: Maxim Group cut its Strategy price target to $215 from $250 while maintaining a Buy rating. Cantor Fitzgerald lowered its target to $186, and B. Riley reduced its target to $155. The revisions reflect lower Bitcoin forecasts and increased caution toward Strategy’s valuation and capital-allocation model. Strategy Stock Price Target Cut to $215 by Maxim Group
• Negative Sentiment: Strategy has gone six consecutive weeks without buying Bitcoin, its longest purchasing pause since at least 2024. The company also plans to sell additional Bitcoin, potentially raising billions of dollars to fund share repurchases and preferred-stock dividends. While buybacks may support equity holders, selling the core asset undermines the accumulation narrative and can pressure investor confidence. Strategy Has Gone Six Consecutive Weeks Without Buying Bitcoin
• Negative Sentiment: Bitcoin is hovering near $64,000 amid broader crypto-market uncertainty, technical support concerns and debate over the proposed BIP-110 upgrade. Because Strategy holds more than 842,000 BTC, continued Bitcoin weakness directly weighs on the value of its holdings and MSTR’s equity premium. Strategy’s Michael Saylor Is Making a Strong Case Against a Proposed New Bitcoin Upgrade

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source