Strategy (NASDAQ:MSTR) Shares Down 5% - Here's Why

Strategy Incorporated (NASDAQ:MSTR - Get Free Report)'s share price dropped 5% during trading on Friday . The stock traded as low as $380.70 and last traded at $379.67. Approximately 6,358,998 shares changed hands during trading, a decline of 65% from the average daily volume of 18,064,542 shares. The stock had previously closed at $399.46.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. Monness Crespi & Hardt lowered shares of Strategy from a "neutral" rating to a "sell" rating and set a $220.00 target price for the company. in a research note on Tuesday, April 1st. Mizuho started coverage on Strategy in a research note on Wednesday, January 29th. They set an "outperform" rating and a $515.00 target price on the stock. UBS Group reissued a "buy" rating on shares of Strategy in a research note on Friday, May 16th. Compass Point raised shares of Strategy to a "strong-buy" rating in a report on Wednesday, January 29th. Finally, BTIG Research reissued a "buy" rating on shares of Strategy in a research note on Wednesday, May 14th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $514.42.

Strategy Price Performance

The stock has a 50-day moving average of $341.51 and a two-hundred day moving average of $339.06. The firm has a market cap of $102.59 billion, a price-to-earnings ratio of -66.60 and a beta of 3.79. The company has a current ratio of 0.71, a quick ratio of 0.65 and a debt-to-equity ratio of 0.39.

Strategy (NASDAQ:MSTR - Get Free Report) last announced its earnings results on Thursday, May 1st. The software maker reported ($16.49) EPS for the quarter, missing the consensus estimate of ($0.02) by ($16.47). The firm had revenue of $111.07 million during the quarter, compared to analyst estimates of $116.66 million. Strategy had a negative return on equity of 19.01% and a negative net margin of 251.73%. The business's quarterly revenue was down 3.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.83) earnings per share.

Insider Buying and Selling

In other Strategy news, EVP Wei-Ming Shao bought 500 shares of the firm's stock in a transaction dated Thursday, March 20th. The stock was acquired at an average price of $85.00 per share, with a total value of $42,500.00. Following the completion of the transaction, the executive vice president now directly owns 500 shares in the company, valued at approximately $42,500. This represents a ∞ increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Jarrod M. Patten sold 1,100 shares of the company's stock in a transaction on Friday, May 9th. The shares were sold at an average price of $427.00, for a total value of $469,700.00. Following the transaction, the director now directly owns 9,170 shares in the company, valued at $3,915,590. The trade was a 10.71% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders bought 8,000 shares of company stock valued at $680,000 and sold 46,836 shares valued at $16,214,791. Company insiders own 9.16% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Norges Bank purchased a new position in shares of Strategy during the 4th quarter valued at $523,981,000. Amundi grew its stake in Strategy by 262.8% in the fourth quarter. Amundi now owns 570,217 shares of the software maker's stock valued at $165,146,000 after purchasing an additional 413,028 shares in the last quarter. First Trust Advisors LP increased its position in Strategy by 266.1% in the 4th quarter. First Trust Advisors LP now owns 417,574 shares of the software maker's stock worth $120,938,000 after purchasing an additional 303,517 shares during the last quarter. Proficio Capital Partners LLC acquired a new position in Strategy in the 4th quarter worth about $81,783,000. Finally, Geode Capital Management LLC raised its stake in shares of Strategy by 10.2% during the 4th quarter. Geode Capital Management LLC now owns 3,047,625 shares of the software maker's stock worth $881,470,000 after purchasing an additional 281,342 shares in the last quarter. 59.84% of the stock is owned by hedge funds and other institutional investors.

About Strategy

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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