Strategy (NASDAQ:MSTR) Trading 5% Higher - Here's Why

Key Points

• Shares of Strategy Inc (NASDAQ:MSTR) increased by 5% on Wednesday, reaching a high of $343.73 before closing at $338.41, despite an 8% decline in trading volume.
• Analysts have raised their price targets for Strategy, with Mizuho setting a new target of $586 and BTIG increasing theirs to $700, reflecting positive sentiment towards the stock.
• The company reported earnings of $32.60 per share for the most recent quarter, exceeding expectations and showcasing a year-over-year revenue growth of 2.7%.

Shares of Strategy Inc (NASDAQ:MSTR - Get Free Report) traded up 5% on Wednesday . The stock traded as high as $343.73 and last traded at $338.41. 13,597,308 shares were traded during trading, a decline of 8% from the average session volume of 14,752,131 shares. The stock had previously closed at $322.21.

Analysts Set New Price Targets

Several analysts recently weighed in on the company. Mizuho upped their price objective on Strategy from $563.00 to $586.00 and gave the stock an "outperform" rating in a research report on Monday, August 11th. BTIG Research upped their price objective on Strategy from $620.00 to $700.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Cowen restated a "buy" rating on shares of Strategy in a research report on Wednesday, August 13th. Benchmark restated a "buy" rating on shares of Strategy in a research report on Wednesday, August 13th. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Strategy in a report on Wednesday, August 13th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Strategy presently has an average rating of "Moderate Buy" and a consensus target price of $509.54.

Strategy Trading Up 5.0%

The company has a market cap of $95.96 billion, a price-to-earnings ratio of 29.79 and a beta of 3.82. The firm has a 50 day moving average price of $355.18 and a two-hundred day moving average price of $361.48. 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 issued its quarterly earnings results on Thursday, July 31st. The software maker reported $32.60 earnings per share for the quarter, beating the consensus estimate of ($0.12) by $32.72. The company had revenue of $114.49 million during the quarter, compared to analysts' expectations of $112.68 million. Strategy had a return on equity of 18.83% and a net margin of 1,036.61%.The business's quarterly revenue was up 2.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($5.74) earnings per share. Strategy has set its FY 2025 guidance at 80.000-80.000 EPS.

Insider Buying and Selling

In related news, CAO Jeanine Montgomery purchased 5,000 shares of the firm'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 purchase, the chief accounting officer owned 5,000 shares in the company, valued at approximately $450,000. This represents a ∞ increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Jane A. Dietze bought 1,500 shares of the firm's stock in a transaction that occurred on Tuesday, July 29th. The shares were acquired at an average cost of $90.00 per share, with a total value of $135,000.00. Following the purchase, the director directly owned 1,500 shares of the company's stock, valued at $135,000. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last quarter, insiders have acquired 265,474 shares of company stock valued at $24,056,259 and have sold 152,150 shares valued at $62,847,251. Corporate insiders own 8.46% of the company's stock.

Institutional Investors Weigh In On Strategy

Several large investors have recently added to or reduced their stakes in the business. Corient Private Wealth LLC grew its stake in Strategy by 92.3% during the second quarter. Corient Private Wealth LLC now owns 148,054 shares of the software maker's stock worth $59,848,000 after purchasing an additional 71,075 shares during the period. Canal Capital Management LLC grew its stake in Strategy by 71.4% during the second quarter. Canal Capital Management LLC now owns 2,426 shares of the software maker's stock worth $981,000 after purchasing an additional 1,011 shares during the period. Q3 Asset Management acquired a new stake in Strategy during the second quarter worth approximately $874,000. Total Investment Management Inc. acquired a new stake in Strategy during the second quarter worth approximately $280,000. Finally, Centaurus Financial Inc. grew its stake in Strategy by 2.2% during the second quarter. Centaurus Financial Inc. now owns 5,842 shares of the software maker's stock worth $2,362,000 after purchasing an additional 126 shares during the period. 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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