Strategy (NASDAQ:MSTR) Trading Down 7% - Here's Why

Key Points

• Strategy Inc shares fell 7% on Thursday, trading as low as $292.36 after closing at $323.31.
• Analysts have mixed ratings with an average target price of $547.50, while one brokerage raised the target to $700.00 with a "buy" rating.
• Recent insider activity revealed significant trades, including a purchase of 10,000 shares by a director and a sale of 18,750 shares by the CFO.

Strategy Inc (NASDAQ:MSTR - Get Free Report) shares fell 7% during trading on Thursday . The company traded as low as $292.36 and last traded at $300.70. 21,983,773 shares were traded during mid-day trading, an increase of 48% from the average session volume of 14,832,600 shares. The stock had previously closed at $323.31.

Analyst Ratings Changes

A number of brokerages have recently commented on MSTR. Monness Crespi & Hardt upped their target price on Strategy from $175.00 to $200.00 and gave the stock a "sell" rating in a research note on Tuesday, July 15th. Benchmark reiterated a "buy" rating on shares of Strategy in a research report on Wednesday, August 13th. BTIG Research increased their price target on Strategy from $620.00 to $700.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Canaccord Genuity Group reiterated a "buy" rating and set a $464.00 price target on shares of Strategy in a research report on Tuesday, August 26th. Finally, Mizuho increased their price target on Strategy from $563.00 to $586.00 and gave the stock an "outperform" rating in a research report on Monday, August 11th. 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 issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $547.50.

Strategy Stock Performance

The firm has a 50-day moving average price of $364.55 and a two-hundred day moving average price of $359.43. The company has a quick ratio of 0.68, a current ratio of 0.68 and a debt-to-equity ratio of 0.17. The firm has a market cap of $85.26 billion, a PE ratio of 26.47 and a beta of 3.82.

Strategy (NASDAQ:MSTR - Get Free Report) last posted its earnings results on Thursday, July 31st. The software maker reported $32.60 earnings per share (EPS) for the quarter, topping 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 firm's quarterly revenue was up 2.7% compared to the same quarter last year. During the same quarter last year, the firm earned ($5.74) earnings per share. Strategy has set its FY 2025 guidance at 80.000-80.000 EPS.

Insider Activity at Strategy

In related news, Director Gregg Winiarski bought 10,000 shares of the stock in a transaction that occurred on Friday, August 8th. The stock was purchased at an average cost of $97.65 per share, with a total value of $976,500.00. Following the purchase, the director directly owned 10,000 shares of the company's stock, valued at $976,500. This trade represents a ∞ increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Andrew Kang sold 18,750 shares of the business's stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $395.00, for a total value 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. The trade was a 43.39% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, 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. 8.46% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. Canal Capital Management LLC lifted its holdings in shares of Strategy by 71.4% in the 2nd quarter. Canal Capital Management LLC now owns 2,426 shares of the software maker's stock valued at $981,000 after purchasing an additional 1,011 shares during the last quarter. Q3 Asset Management purchased a new stake in shares of Strategy in the 2nd quarter valued at about $874,000. Total Investment Management Inc. purchased a new stake in shares of Strategy in the 2nd quarter valued at about $280,000. Centaurus Financial Inc. lifted its holdings in shares of Strategy by 2.2% in the 2nd quarter. Centaurus Financial Inc. now owns 5,842 shares of the software maker's stock valued at $2,362,000 after purchasing an additional 126 shares during the last quarter. Finally, Orion Porfolio Solutions LLC lifted its holdings in shares of Strategy by 5.2% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 23,494 shares of the software maker's stock valued at $9,497,000 after purchasing an additional 1,163 shares during the last quarter. 59.84% of the stock is owned by institutional investors and hedge funds.

About Strategy

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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