Strategy (NASDAQ:MSTR) Stock Price Down 3.4% - Here's What Happened

Key Points

• Strategy Inc's stock price fell by 3.4%, reaching a low of $318.72 with a significant drop in trading volume of 75% compared to its average.
• Analysts have revised their price targets for MSTR, with Mizuho setting it at $586.00 and BTIG Research at $700.00, indicating a generally positive outlook on the stock.
• Recent insider activity includes significant stock sales by CFO Andrew Kang and EVP Wei-Ming Shao, leading to notable decreases in their ownership stakes.

Shares of Strategy Inc (NASDAQ:MSTR - Get Free Report) traded down 3.4% during trading on Thursday . The stock traded as low as $318.72 and last traded at $319.10. 3,794,656 shares changed hands during trading, a decline of 75% from the average session volume of 15,073,441 shares. The stock had previously closed at $330.26.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on MSTR shares. Cowen reaffirmed a "buy" rating on shares of Strategy in a report on Wednesday, August 13th. Canaccord Genuity Group reissued a "buy" rating and issued a $464.00 target price on shares of Strategy in a report on Tuesday, August 26th. TD Cowen boosted their target price on shares of Strategy from $590.00 to $680.00 and gave the stock a "buy" rating in a report on Tuesday, July 15th. Monness Crespi & Hardt boosted their target price on shares of Strategy from $175.00 to $200.00 and gave the stock a "sell" rating in a report on Tuesday, July 15th. Finally, Mizuho boosted their target price on shares of Strategy from $563.00 to $586.00 and gave the stock an "outperform" rating in a report on Monday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, one has assigned 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 target price of $552.50.

Strategy Price Performance

The stock's 50-day simple moving average is $386.32 and its two-hundred day simple moving average is $355.17. The company has a debt-to-equity ratio of 0.17, a current ratio of 0.68 and a quick ratio of 0.68. The firm has a market cap of $95.24 billion, a P/E ratio of 29.57 and a beta of 3.82.

Strategy (NASDAQ:MSTR - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The software maker reported $32.60 EPS for the quarter, topping analysts' consensus estimates of ($0.12) by $32.72. Strategy had a net margin of 1,036.61% and a return on equity of 18.83%. The firm had revenue of $114.49 million for the quarter, compared to analysts' expectations of $112.68 million. During the same period in the prior year, the business posted ($5.74) earnings per share. The business's revenue for the quarter was up 2.7% on a year-over-year basis. Strategy has set its FY 2025 guidance at 80.000-80.000 EPS.

Insider Buying and Selling at Strategy

In other Strategy news, CAO Jeanine Montgomery acquired 5,000 shares of the firm's stock in a transaction on Tuesday, July 29th. The stock was acquired at an average cost of $90.00 per share, for a total transaction of $450,000.00. Following the purchase, the chief accounting officer owned 5,000 shares in the company, valued at approximately $450,000. The trade was a ∞ increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Jane A. Dietze acquired 1,500 shares of the firm's stock in a transaction on Tuesday, July 29th. The shares were acquired at an average price of $90.00 per share, with a total value of $135,000.00. Following the completion of the purchase, the director owned 1,500 shares in the company, valued at approximately $135,000. This trade represents a ∞ increase in their position. The disclosure for this purchase can be found here. In the last quarter, insiders bought 252,974 shares of company stock valued at $22,844,759 and sold 142,150 shares valued at $59,289,351. Corporate insiders own 8.46% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. State Street Corp lifted its position in shares of Strategy by 9.9% during the second quarter. State Street Corp now owns 5,484,569 shares of the software maker's stock worth $2,217,027,000 after purchasing an additional 495,278 shares in the last quarter. Norges Bank purchased a new position in Strategy in the second quarter valued at approximately $1,203,062,000. Amundi increased its stake in Strategy by 378.9% in the second quarter. Amundi now owns 1,783,982 shares of the software maker's stock valued at $717,660,000 after purchasing an additional 1,411,500 shares during the last quarter. Invesco Ltd. grew its position in shares of Strategy by 14.0% during the second quarter. Invesco Ltd. now owns 1,398,098 shares of the software maker's stock worth $565,153,000 after acquiring an additional 171,940 shares during the last quarter. Finally, Legal & General Group Plc grew its position in shares of Strategy by 19.1% during the second quarter. Legal & General Group Plc now owns 1,168,437 shares of the software maker's stock worth $472,317,000 after acquiring an additional 187,291 shares during the last quarter. 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.