Strategy (NASDAQ:MSTR) Shares Down 2.6% Following Insider Selling

Key Points

• Strategy Inc's share price fell 2.6% after insider Wei-Ming Shao sold 10,000 shares at $355.79 each, substantially decreasing their ownership by 44%.
• Analyst ratings vary, with TD Cowen cutting the price target to $620 while BTIG Research raised theirs to $700, indicating a mixed outlook on the stock.
• Institutional investors own 59.84% of Strategy's stock, with several firms, including State Street Corp and Amundi, increasing their stakes significantly in the last quarter.

Strategy Inc (NASDAQ:MSTR - Get Free Report)'s share price dropped 2.6% during trading on Monday after an insider sold shares in the company. The company traded as low as $329.00 and last traded at $335.93. Approximately 9,375,336 shares changed hands during mid-day trading, a decline of 37% from the average daily volume of 14,848,641 shares. The stock had previously closed at $344.75.

Specifically, EVP Wei-Ming Shao sold 10,000 shares of the company's stock in a transaction on Thursday, September 18th. The stock was sold at an average price of $355.79, for a total value of $3,557,900.00. Following the completion of the sale, the executive vice president owned 12,726 shares in the company, valued at $4,527,783.54. This represents a 44.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link.

Analyst Ratings Changes

A number of brokerages have recently commented on MSTR. TD Cowen cut their price objective on Strategy from $640.00 to $620.00 and set a "buy" rating for the company in a research report on Tuesday, September 16th. BTIG Research increased their price objective on Strategy from $620.00 to $700.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Monness Crespi & Hardt increased their price objective on Strategy from $175.00 to $200.00 and gave the company a "sell" rating in a research report on Tuesday, July 15th. Cowen reiterated a "buy" rating on shares of Strategy in a research report on Wednesday, August 13th. Finally, Benchmark restated a "buy" rating on shares of Strategy in a report on Wednesday, August 13th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Strategy currently has an average rating of "Moderate Buy" and an average price target of $547.50.

Strategy Trading Down 2.6%

The company has a market capitalization of $95.25 billion, a price-to-earnings ratio of 29.57 and a beta of 3.82. The company has a 50-day moving average price of $371.79 and a 200-day moving average price of $359.57. The company has a quick ratio of 0.68, a current ratio of 0.68 and a debt-to-equity ratio of 0.17.

Strategy (NASDAQ:MSTR - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The software maker reported $32.60 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.12) by $32.72. The company had revenue of $114.49 million for the quarter, compared to the consensus estimate of $112.68 million. Strategy had a return on equity of 18.83% and a net margin of 1,036.61%.The firm's revenue was up 2.7% compared to the same quarter last year. During the same period last year, the business posted ($5.74) earnings per share. Strategy has set its FY 2025 guidance at 80.000-80.000 EPS.

Institutional Investors Weigh In On Strategy

Institutional investors have recently added to or reduced their stakes in the company. State Street Corp boosted its holdings in Strategy by 9.9% during the second quarter. State Street Corp now owns 5,484,569 shares of the software maker's stock valued at $2,217,027,000 after purchasing an additional 495,278 shares in the last quarter. Norges Bank acquired a new stake in Strategy during the second quarter valued at approximately $1,203,062,000. Amundi boosted its holdings in Strategy by 378.9% during the second quarter. Amundi now owns 1,783,982 shares of the software maker's stock valued at $717,660,000 after purchasing an additional 1,411,500 shares in the last quarter. Invesco Ltd. boosted its holdings in Strategy by 14.0% during the second quarter. Invesco Ltd. now owns 1,398,098 shares of the software maker's stock valued at $565,153,000 after purchasing an additional 171,940 shares in the last quarter. Finally, Legal & General Group Plc boosted its holdings in Strategy by 19.1% during the second quarter. Legal & General Group Plc now owns 1,168,437 shares of the software maker's stock valued at $472,317,000 after purchasing an additional 187,291 shares in the last quarter. 59.84% of the stock is owned by institutional investors and hedge funds.

Strategy Company Profile

Strategy Incorporated, formerly known as MicroStrategy, provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers Strategy ONE, a platform that allows non-technical users to access novel and actionable insights for decision-making, and Strategy Cloud for Government, which provides always-on threat monitoring designed to meet the strict technical and regulatory standards of governments and financial institutions.

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