Strategy (NASDAQ:MSTR) Shares Down 4.9% - Here's Why

Key Points

• Shares fell 4.9% to about $170.19 on Tuesday, with 9.66 million shares traded — down ~34% from the average session volume.
• Analysts are mixed but overall optimistic: MarketBeat shows a consensus rating of "Moderate Buy" with an average price target of $485.80, despite several divergent price-target revisions from firms like Wells Fargo and HC Wainwright.
• Quarterly results beat expectations: Strategy reported $8.42 EPS vs. a consensus of ($0.10) and revenue of $128.69M (vs. $116.65M), and set FY2025 guidance at 80.000 EPS.

Strategy Inc (NASDAQ:MSTR - Get Free Report)'s stock price traded down 4.9% on Tuesday . The stock traded as low as $170.39 and last traded at $170.1850. 9,663,106 shares traded hands during mid-day trading, a decline of 34% from the average session volume of 14,669,483 shares. The stock had previously closed at $179.04.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on MSTR shares. Wells Fargo & Company reissued an "equal weight" rating and issued a $54.00 price target (down previously from $65.00) on shares of Strategy in a research note on Tuesday, September 30th. Weiss Ratings reissued a "hold (c)" rating on shares of Strategy in a research note on Wednesday, October 8th. HC Wainwright decreased their price target on Strategy from $521.00 to $475.00 and set a "buy" rating on the stock in a research note on Monday, November 3rd. Canaccord Genuity Group raised their price objective on Strategy from $464.00 to $474.00 and gave the stock a "buy" rating in a research report on Monday, November 3rd. Finally, Citigroup initiated coverage on shares of Strategy in a research report on Tuesday, October 21st. They issued a "buy" rating and a $485.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $485.80.

Strategy Stock Performance

The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.68 and a current ratio of 0.68. The company has a market capitalization of $48.37 billion, a price-to-earnings ratio of 14.79 and a beta of 3.87. The firm has a 50-day simple moving average of $281.50 and a two-hundred day simple moving average of $346.78.

Strategy (NASDAQ:MSTR - Get Free Report) last posted its quarterly earnings data on Thursday, October 30th. The software maker reported $8.42 EPS for the quarter, beating the consensus estimate of ($0.10) by $8.52. Strategy had a net margin of 1,036.61% and a return on equity of 18.83%. The business had revenue of $128.69 million during the quarter, compared to analyst estimates of $116.65 million. During the same quarter last year, the firm posted ($1.56) earnings per share. The business's revenue for the quarter was up 10.9% compared to the same quarter last year. Strategy has set its FY 2025 guidance at 80.000-80.000 EPS.

Insiders Place Their Bets

In other news, EVP Wei-Ming Shao sold 2,600 shares of Strategy stock in a transaction on Wednesday, November 19th. The shares were sold at an average price of $202.02, for a total transaction of $525,252.00. Following the completion of the sale, the executive vice president directly owned 32,726 shares of the company's stock, valued at approximately $6,611,306.52. The trade was a 7.36% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Jarrod M. Patten bought 12,000 shares of the stock in a transaction that occurred on Friday, October 17th. The shares were purchased at an average price of $96.88 per share, with a total value of $1,162,560.00. Following the purchase, the director owned 29,335 shares of the company's stock, valued at approximately $2,841,974.80. This represents a 69.22% increase in their position. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders bought 36,280 shares of company stock worth $3,527,911 and sold 53,177 shares worth $17,122,166. 8.46% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Strategy

Several hedge funds and other institutional investors have recently made changes to their positions in MSTR. Pilgrim Partners Asia Pte Ltd purchased a new position in Strategy in the third quarter valued at approximately $32,000. Quent Capital LLC acquired a new position in shares of Strategy in the 3rd quarter valued at $33,000. Binnacle Investments Inc grew its position in shares of Strategy by 492.9% in the 2nd 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. MCF Advisors LLC acquired a new stake in Strategy during the 2nd quarter worth $35,000. Finally, Maseco LLP purchased a new stake in Strategy in the second quarter valued at $36,000. Institutional investors and hedge funds own 59.84% of the company's stock.

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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