Strategy (NASDAQ:MSTR) Shares Down 1.3% - Here's Why

Key Points

• Strategy Inc (NASDAQ:MSTR) has seen a 1.3% drop in stock price during mid-day trading, closing at $344.75 after reaching a low of $337.07.
• The company reported record earnings of $32.60 per share for the last quarter, exceeding analysts' expectations, with a net margin of 1,036.61%.
• Several analysts have updated their ratings, with BTIG Research increasing its price target from $620 to $700 and maintaining a "buy" rating, while overall, the consensus rating for the stock is classified as a "Moderate Buy."

Shares of Strategy Inc (NASDAQ:MSTR - Get Free Report) traded down 1.3% during trading on Friday . The company traded as low as $337.07 and last traded at $344.75. 16,984,801 shares were traded during trading, an increase of 14% from the average session volume of 14,875,473 shares. The stock had previously closed at $349.12.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the stock. Mizuho boosted their target price on shares of Strategy from $563.00 to $586.00 and gave the company an "outperform" rating in a report on Monday, August 11th. BTIG Research boosted their target price on shares of Strategy from $620.00 to $700.00 and gave the company a "buy" rating in a report on Friday, August 1st. TD Cowen dropped their price target on Strategy from $640.00 to $620.00 and set a "buy" rating on the stock in a research report on Tuesday, September 16th. Canaccord Genuity Group restated a "buy" rating and issued a $464.00 price target on shares of Strategy in a research note on Tuesday, August 26th. Finally, Cantor Fitzgerald restated an "overweight" rating on shares of Strategy in a research note 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 stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $547.50.

Strategy Trading Down 2.6%

The company has a market cap of $95.25 billion, a P/E ratio of 30.37 and a beta of 3.82. The stock's 50-day moving average is $371.79 and its two-hundred day moving average is $359.57. The company has a debt-to-equity ratio of 0.17, a current ratio of 0.68 and a quick ratio of 0.68.

Strategy (NASDAQ:MSTR - Get Free Report) last released 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 firm had revenue of $114.49 million for 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 company's revenue was up 2.7% compared to the same quarter last year. During the same period in the prior year, the firm earned ($5.74) EPS. Strategy has set its FY 2025 guidance at 80.000-80.000 EPS.

Insider Activity

In other news, CFO Andrew Kang sold 18,750 shares of the stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $395.00, for a total transaction of $7,406,250.00. Following the transaction, the chief financial officer directly owned 24,460 shares of the company's stock, valued at $9,661,700. This represents a 43.39% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Wei-Ming Shao sold 32,500 shares of the stock in a transaction on Wednesday, July 9th. The shares were sold at an average price of $401.47, for a total value of $13,047,775.00. Following the transaction, the executive vice president directly owned 12,726 shares in the company, valued at $5,109,107.22. The trade was a 71.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders purchased 265,474 shares of company stock worth $24,056,259 and sold 152,150 shares worth $62,847,251. 8.46% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Strategy

Several institutional investors and hedge funds have recently bought and sold shares of the stock. First United Bank & Trust purchased a new position in shares of Strategy during the 1st quarter valued at about $29,000. Siemens Fonds Invest GmbH increased its holdings in Strategy by 6,992.7% in the 4th quarter. Siemens Fonds Invest GmbH now owns 119,654 shares of the software maker's stock worth $33,000 after acquiring an additional 117,967 shares in the last quarter. Binnacle Investments Inc raised its stake in Strategy by 492.9% during the 2nd quarter. Binnacle Investments Inc now owns 83 shares of the software maker's stock worth $34,000 after acquiring an additional 69 shares during the period. MCF Advisors LLC purchased a new position in Strategy during the second quarter valued at approximately $35,000. Finally, Maseco LLP bought a new position in shares of Strategy in the second quarter worth approximately $36,000. 59.84% of the stock is currently owned by hedge funds and other institutional investors.

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.