Strategy (NASDAQ:MSTR) Stock Price Down 1.6% on Analyst Downgrade

Key Points

• Strategy Inc's stock (NASDAQ:MSTR) fell 1.6% following a downgrade by TD Cowen, which lowered the price target from $640.00 to $620.00, while still maintaining a buy rating.
• Insider transactions increased significantly, with director Gregg Winiarski purchasing 10,000 shares and EVP Wei-Ming Shao acquiring 12,500 shares, indicating strong insider confidence in the company.
• The company's latest earnings report showed a remarkable EPS of $32.60, surpassing estimates by $32.72, and a revenue growth of 2.7% year-over-year.

Shares of Strategy Inc (NASDAQ:MSTR - Get Free Report) fell 1.6% during trading on Wednesday after TD Cowen lowered their price target on the stock from $640.00 to $620.00. TD Cowen currently has a buy rating on the stock. Strategy traded as low as $323.20 and last traded at $329.71. 9,514,588 shares changed hands during trading, a decline of 36% from the average session volume of 14,837,053 shares. The stock had previously closed at $335.09.

Other equities analysts have also issued research reports about the stock. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Strategy in a research report on Wednesday, August 13th. Canaccord Genuity Group reaffirmed a "buy" rating and issued a $464.00 price objective on shares of Strategy in a research note on Tuesday, August 26th. Barclays restated a "hold" rating on shares of Strategy in a report on Monday, May 19th. Benchmark reissued a "buy" rating on shares of Strategy in a research report on Wednesday, August 13th. Finally, Monness Crespi & Hardt lifted their target price on shares of Strategy from $175.00 to $200.00 and gave the company a "sell" rating in a report on Tuesday, July 15th. One equities research 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 assigned a Sell rating to the stock. According to data from MarketBeat, Strategy has a consensus rating of "Moderate Buy" and a consensus price target of $547.50.

Insiders Place Their Bets

In related news, Director Jane A. Dietze bought 1,500 shares of Strategy stock in a transaction that occurred on Tuesday, July 29th. The stock was purchased at an average cost of $90.00 per share, for a total transaction of $135,000.00. Following the acquisition, the director owned 1,500 shares in the company, valued at $135,000. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Andrew Kang sold 18,750 shares of the stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $395.00, for a total value of $7,406,250.00. Following the sale, the chief financial officer owned 24,460 shares of the company's stock, valued at approximately $9,661,700. The trade was a 43.39% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have purchased 265,474 shares of company stock worth $24,056,259 and have sold 142,150 shares worth $59,289,351. 8.46% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. 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 worth $34,000 after buying an additional 69 shares in the last quarter. MCF Advisors LLC acquired a new stake in shares of Strategy during the second quarter worth $35,000. Maseco LLP bought a new stake in shares of Strategy during the 2nd quarter valued at $36,000. First United Bank & Trust acquired a new stake in shares of Strategy during the 1st quarter worth $29,000. Finally, AllSquare Wealth Management LLC lifted its holdings in shares of Strategy by 100.0% during the 2nd quarter. AllSquare Wealth Management LLC now owns 100 shares of the software maker's stock worth $40,000 after acquiring an additional 50 shares during the period. Institutional investors own 59.84% of the company's stock.

Strategy Stock Down 1.3%

The firm has a 50 day simple moving average of $371.79 and a two-hundred day simple moving average of $359.18. The stock has a market capitalization of $97.75 billion, a P/E ratio of 30.35 and a beta of 3.82. 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 posted its earnings results on Thursday, July 31st. The software maker reported $32.60 EPS for the quarter, beating the consensus estimate of ($0.12) by $32.72. Strategy had a return on equity of 18.83% and a net margin of 1,036.61%.The firm had revenue of $114.49 million during the quarter, compared to the consensus estimate of $112.68 million. During the same period last year, the company earned ($5.74) earnings per share. The business's quarterly revenue was up 2.7% on a year-over-year basis. Strategy has set its FY 2025 guidance at 80.000-80.000 EPS.

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.