Strategy (NASDAQ:MSTR) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Strategy from “sell” to “strong sell,” while Zacks Research issued a similar downgrade. However, the broader analyst consensus remains “Moderate Buy,” with an average price target of $242.81.
• Strategy’s shares opened at $100.01, and the company reported a major quarterly earnings miss: a loss of $24.45 per share versus the expected loss of $2.19, despite revenue rising 6.9% year over year to $122.37 million.
• Insider selling outweighed buying over the past quarter, with insiders selling 180,422 shares worth about $23.0 million while acquiring 11,166 shares. Institutional investors remain significant shareholders, owning 59.84% of the company.

Strategy (NASDAQ:MSTR - Get Free Report) was downgraded by analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a report issued on Saturday.

A number of other equities analysts have also weighed in on the stock. BTIG Research reiterated a "buy" rating and issued a $250.00 price objective on shares of Strategy in a research report on Friday, July 31st. TD Cowen cut their price objective on shares of Strategy from $400.00 to $260.00 and set a "buy" rating for the company in a research report on Tuesday, June 30th. Citigroup restated a "buy" rating and issued a $136.00 target price (down from $260.00) on shares of Strategy in a research note on Tuesday, June 30th. UBS Group reaffirmed a "buy" rating on shares of Strategy in a report on Friday, July 31st. Finally, Zacks Research lowered shares of Strategy from a "hold" rating to a "strong sell" rating in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $242.81.

Strategy Stock Up 3.3%

Strategy stock opened at $100.01 on Friday. Strategy has a twelve month low of $81.81 and a twelve month high of $414.36. The stock has a 50 day moving average of $104.40 and a two-hundred day moving average of $132.43. The company has a current ratio of 5.39, a quick ratio of 6.05 and a debt-to-equity ratio of 0.22. The stock has a market capitalization of $35.05 billion, a price-to-earnings ratio of -1.03 and a beta of 3.54.

Strategy (NASDAQ:MSTR - Get Free Report) last announced its earnings results on Friday, July 31st. The software maker reported ($24.45) earnings per share for the quarter, missing the consensus estimate of ($2.19) by ($22.26). The company had revenue of $122.37 million during the quarter, compared to analysts' expectations of $122.90 million. Strategy had a negative net margin of 6,102.95% and a negative return on equity of 74.18%. The company's revenue for the quarter was up 6.9% compared to the same quarter last year. During the same quarter last year, the business posted $32.52 earnings per share. As a group, research analysts expect that Strategy will post 57.47 earnings per share for the current year.

Insider Buying and Selling

In other Strategy news, Director Jarrod M. Patten sold 15,050 shares of the stock in a transaction on Friday, May 29th. The stock was sold at an average price of $154.94, for a total value of $2,331,847.00. Following the completion of the transaction, the director owned 28,000 shares in the company, valued at approximately $4,338,320. This represents a 34.96% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Phong Le sold 93,738 shares of the firm's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $118.73, for a total value of $11,129,512.74. Following the completion of the sale, the chief executive officer directly owned 119,925 shares of the company's stock, valued at approximately $14,238,695.25. This trade represents a 43.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have acquired 11,166 shares of company stock valued at $1,014,265 and have sold 180,422 shares valued at $22,957,438. 6.49% of the stock is currently owned by corporate insiders.

Institutional Trading of Strategy

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Capital International Investors lifted its position in shares of Strategy by 37.3% during the 4th quarter. Capital International Investors now owns 20,614,868 shares of the software maker's stock valued at $3,132,460,000 after acquiring an additional 5,600,573 shares during the period. Vanguard Group Inc. grew its holdings in shares of Strategy by 21.0% in the 4th quarter. Vanguard Group Inc. now owns 24,062,886 shares of the software maker's stock worth $3,656,356,000 after acquiring an additional 4,178,611 shares during the period. Amundi grew its holdings in shares of Strategy by 373.7% in the 4th quarter. Amundi now owns 4,790,702 shares of the software maker's stock worth $727,947,000 after acquiring an additional 3,779,340 shares during the period. Norges Bank purchased a new position in Strategy in the 4th quarter valued at approximately $536,140,000. Finally, Capital Research Global Investors increased its stake in Strategy by 66.7% in the 4th quarter. Capital Research Global Investors now owns 7,008,535 shares of the software maker's stock valued at $1,064,963,000 after purchasing an additional 2,803,277 shares in the last quarter. Institutional investors and hedge funds own 59.84% of the company's stock.

Trending Headlines about Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Michael Saylor said ChatGPT helped Strategy develop preferred-stock and credit structures that supported roughly $15 billion in financing for Bitcoin purchases. The disclosure reinforces the company’s ability to raise capital and expand its Bitcoin treasury without relying solely on common-stock offerings. Michael Saylor: ChatGPT Helped Strategy Raise $15B for Bitcoin
• Positive Sentiment: Investors purchased approximately 744,560 MSTR call options, about 60% above typical daily call volume. The activity signals elevated speculative interest and may have contributed to upward pressure on the common stock.
• Positive Sentiment: Strategy’s approval of a multibillion-dollar Bitcoin sale to fund stock buybacks could improve capital allocation and support the share price if management repurchases stock below its underlying asset value. Strategy Approved Bitcoin Sale to Fund Buybacks
• Neutral Sentiment: Strategy-linked wallets reportedly transferred about 1,030 Bitcoin, worth approximately $66 million. The movement appears to be an internal transfer, but investors are monitoring it amid uncertainty over Bitcoin’s near-term direction. Strategy Transfers $66 Million in Bitcoin
• Negative Sentiment: Analysts have recently reduced their MSTR price targets, including Maxim Group’s cut to $215, while other firms lowered both their targets and Bitcoin forecasts. These revisions reflect concern about Bitcoin weakness, valuation risk and the company’s leverage to crypto markets. Strategy Stock Price Target Cut to $215
• Negative Sentiment: Zacks Research downgraded Strategy from “Hold” to “Strong Sell,” adding to bearish sentiment. Strategy has also gone six consecutive weeks without buying Bitcoin, raising questions about capital availability and whether its aggressive accumulation strategy has slowed. Strategy’s Bitcoin Buying Drought

Strategy Company Profile

Strategy, formerly known as MicroStrategy, Incorporated NASDAQ: MSTR is a global provider of enterprise analytics and mobility software. The company’s flagship platform offers business intelligence, data discovery, and advanced visualizations that enable organizations to analyze large volumes of data and deliver actionable insights. In addition to traditional on-premises deployments, Strategy provides a range of cloud-based services and managed offerings that allow customers to leverage the power of its analytics tools without managing complex infrastructure.

Founded in 1989 by Michael J.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source