Strategy (NASDAQ:MSTR) Shares Down 1.2% - Here's Why

Key Points

• Strategy Inc's stock (NASDAQ:MSTR) fell by 1.2% to $325.85, with trading volume down 87% compared to its average sessions.
• Analysts have mixed ratings on Strategy, with a consensus target price of $552.50, indicating a general expectation for significant upside despite some sell ratings.
• Recent insider activity includes Director Jane A. Dietze purchasing 1,500 shares while CFO Andrew Kang sold 18,750 shares, reflecting contrasting sentiments among corporate insiders.

Strategy Inc (NASDAQ:MSTR - Get Free Report)'s stock price fell 1.2% on Tuesday . The stock traded as low as $325.39 and last traded at $325.85. 2,011,536 shares traded hands during mid-day trading, a decline of 87% from the average session volume of 15,003,111 shares. The stock had previously closed at $329.90.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on MSTR. Barclays reissued a "hold" rating on shares of Strategy in a research note on Monday, May 19th. Mizuho raised their price target on Strategy from $563.00 to $586.00 and gave the company an "outperform" rating in a report on Monday, August 11th. Canaccord Genuity Group reaffirmed a "buy" rating and set a $464.00 price target on shares of Strategy in a report on Tuesday, August 26th. BTIG Research raised their price target on Strategy from $620.00 to $700.00 and gave the company a "buy" rating in a report on Friday, August 1st. Finally, Benchmark reaffirmed a "buy" rating on shares of Strategy in a report on Wednesday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Strategy currently has a consensus rating of "Moderate Buy" and an average price target of $552.50.

Strategy Stock Up 1.7%

The company has a quick ratio of 0.68, a current ratio of 0.68 and a debt-to-equity ratio of 0.17. The company has a market cap of $93.98 billion, a price-to-earnings ratio of 29.18 and a beta of 3.82. The stock has a fifty day moving average price of $379.35 and a two-hundred day moving average price of $356.06.

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

Insider Activity at Strategy

In other news, CAO Jeanine Montgomery bought 5,000 shares of the company's stock in a transaction dated Tuesday, July 29th. The stock was bought at an average price of $90.00 per share, with a total value of $450,000.00. Following the completion of the acquisition, the chief accounting officer owned 5,000 shares of the company's stock, valued at $450,000. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Gregg Winiarski bought 10,000 shares of the company's stock in a transaction dated Friday, August 8th. The shares were purchased at an average cost of $97.65 per share, with a total value of $976,500.00. Following the acquisition, the director directly owned 10,000 shares of the company's stock, valued at approximately $976,500. This represents a ∞ increase in their position. The disclosure for this purchase can be found here. In the last ninety days, insiders have acquired 252,974 shares of company stock valued at $22,844,759 and have sold 142,150 shares valued at $59,289,351. Corporate insiders own 8.46% of the company's stock.

Institutional Investors Weigh In On Strategy

A number of hedge funds and other institutional investors have recently modified their holdings of the company. GAMMA Investing LLC raised its stake in Strategy by 47.7% in the first quarter. GAMMA Investing LLC now owns 830 shares of the software maker's stock valued at $239,000 after purchasing an additional 268 shares in the last quarter. Yousif Capital Management LLC raised its stake in Strategy by 42.9% in the first quarter. Yousif Capital Management LLC now owns 2,909 shares of the software maker's stock valued at $839,000 after purchasing an additional 873 shares in the last quarter. NBC Securities Inc. acquired a new position in Strategy in the first quarter valued at about $236,000. OVERSEA CHINESE BANKING Corp Ltd acquired a new position in Strategy in the first quarter valued at about $13,795,000. Finally, Amalgamated Bank raised its stake in Strategy by 43.0% in the first quarter. Amalgamated Bank now owns 12,455 shares of the software maker's stock valued at $3,590,000 after purchasing an additional 3,747 shares in the last quarter. 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.