Strategy (NASDAQ:MSTR) Trading Down 2.5% - Here's Why

Key Points

• Strategy Inc's share price dropped by 2.5%, trading as low as $339.21 before recovering slightly to $349.07.
• Analysts currently have a consensus rating of "Moderate Buy" with an average price target of $552.50 for the stock.
• Insider activity increased with CEO Phong Le purchasing 5,500 shares, valuing the transaction at $495,000.

Strategy Inc (NASDAQ:MSTR - Get Free Report)'s share price dropped 2.5% during trading on Monday . The stock traded as low as $339.21 and last traded at $349.07. Approximately 3,782,605 shares traded hands during mid-day trading, a decline of 75% from the average daily volume of 15,311,315 shares. The stock had previously closed at $358.13.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the stock. Monness Crespi & Hardt upped their price target on shares of Strategy from $175.00 to $200.00 and gave the company a "sell" rating in a research note on Tuesday, July 15th. Barclays restated a "hold" rating on shares of Strategy in a research note on Monday, May 19th. Canaccord Genuity Group reaffirmed a "buy" rating on shares of Strategy in a research report on Monday, May 19th. HC Wainwright assumed coverage on shares of Strategy in a report on Tuesday, April 29th. They issued a "buy" rating and a $480.00 price objective on the stock. Finally, 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 research report on Friday, August 1st. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $552.50.

Strategy Stock Performance

The company has a market capitalization of $98.06 billion, a price-to-earnings ratio of 30.44 and a beta of 3.76. The firm has a fifty day simple moving average of $394.09 and a 200 day simple moving average of $354.72. 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 announced its earnings results on Thursday, July 31st. The software maker reported $32.60 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.12) by $32.72. The firm had revenue of $114.49 million for the quarter, compared to analyst estimates of $112.68 million. Strategy had a return on equity of 18.83% and a net margin of 1,036.61%.The business's revenue was up 2.7% on a year-over-year basis. During the same quarter last year, the firm posted ($5.74) EPS. Strategy has set its FY 2025 guidance at 80.000-80.000 EPS.

Insider Buying and Selling at Strategy

In related news, CEO Phong Le purchased 5,500 shares of the firm's stock in a transaction that occurred on Tuesday, July 29th. The shares were purchased at an average cost of $90.00 per share, with a total value of $495,000.00. Following the purchase, the chief executive officer owned 5,500 shares of the company's stock, valued at $495,000. This represents a ∞ increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Jeanine Montgomery acquired 5,000 shares of the stock in a transaction that occurred on Tuesday, July 29th. The stock was purchased at an average price of $90.00 per share, for a total transaction of $450,000.00. Following the completion of the acquisition, the chief accounting officer owned 5,000 shares in the company, valued at $450,000. The trade was a ∞ increase in their position. The disclosure for this purchase can be found here. Over the last ninety days, insiders have bought 278,132 shares of company stock valued at $25,145,795 and have sold 188,933 shares valued at $76,682,203. Company insiders own 8.46% of the company's stock.

Institutional Trading of Strategy

A number of hedge funds have recently bought and sold shares of MSTR. Dunhill Financial LLC purchased a new stake in shares of Strategy in the fourth quarter valued at approximately $26,000. Safe Harbor Fiduciary LLC boosted its stake in Strategy by 820.0% during the fourth quarter. Safe Harbor Fiduciary LLC now owns 92 shares of the software maker's stock worth $27,000 after buying an additional 82 shares during the last quarter. First United Bank & Trust purchased a new stake in Strategy in the 1st quarter valued at $29,000. Siemens Fonds Invest GmbH increased its stake in shares of 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 during the last quarter. Finally, Binnacle Investments Inc raised its holdings in shares of 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. 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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