Strategy (NASDAQ:MSTR) Trading Down 8.7% - Here's Why

Key Points

• Strategy Inc's stock price fell 8.7% during mid-day trading, with shares dropping to a low of $328.16 after closing at $359.69.
• Analysts maintain a consensus rating of "Moderate Buy" for Strategy, with a target price averaging at $509.54 across various reports.
• Insiders have traded significant amounts of stock, with recent sales and purchases indicating changes in ownership, including a notable 10,000 shares sold by EVP Wei-Ming Shao.

Strategy Inc (NASDAQ:MSTR - Get Free Report)'s stock price dropped 8.7% during mid-day trading on Tuesday . The company traded as low as $328.16 and last traded at $328.40. Approximately 19,465,881 shares traded hands during trading, an increase of 32% from the average daily volume of 14,739,625 shares. The stock had previously closed at $359.69.

Analysts Set New Price Targets

MSTR has been the topic of a number of recent analyst reports. Canaccord Genuity Group reiterated a "buy" rating and set a $464.00 target price on shares of Strategy in a research report on Tuesday, August 26th. BTIG Research increased their target price on Strategy from $620.00 to $700.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Cantor Fitzgerald reiterated an "overweight" rating on shares of Strategy in a research report on Wednesday, August 13th. Weiss Ratings reiterated a "hold (c)" rating on shares of Strategy in a research report on Saturday, September 27th. Finally, Wells Fargo & Company reiterated an "equal weight" rating and set a $54.00 target price (down previously from $65.00) on shares of Strategy in a research report on Tuesday, September 30th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $509.54.

Strategy Trading Down 8.7%

The company has a 50 day moving average of $350.47 and a 200 day moving average of $363.41. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.68 and a current ratio of 0.68. The stock has a market capitalization of $93.12 billion, a price-to-earnings ratio of 28.91 and a beta of 3.83.

Strategy (NASDAQ:MSTR - Get Free Report) last issued its earnings results on Thursday, July 31st. The software maker reported $32.60 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.12) by $32.72. Strategy had a return on equity of 18.83% and a net margin of 1,036.61%.The business had revenue of $114.49 million during the quarter, compared to the consensus estimate of $112.68 million. During the same period last year, the company earned ($5.74) EPS. The company'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.

Insiders Place Their Bets

In other Strategy news, EVP Wei-Ming Shao sold 10,000 shares of the firm's stock in a transaction on Thursday, September 18th. The stock was sold at an average price of $355.79, for a total value of $3,557,900.00. Following the completion of the sale, the executive vice president directly owned 12,726 shares of the company's stock, valued at $4,527,783.54. This trade represents a 44.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Jeanine Montgomery bought 5,000 shares of the business's stock in a transaction on Tuesday, July 29th. The stock was bought at an average cost of $90.00 per share, with a total value of $450,000.00. Following the completion of the purchase, the chief accounting officer directly owned 5,000 shares in the company, valued at approximately $450,000. The trade was a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last ninety days, insiders acquired 265,474 shares of company stock worth $24,056,259 and sold 152,150 shares worth $62,847,251. Insiders own 8.46% of the company's stock.

Hedge Funds Weigh In On Strategy

Hedge funds have recently modified their holdings of the business. First United Bank & Trust purchased a new position in shares of Strategy during the 1st quarter worth $29,000. Binnacle Investments Inc grew 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 purchasing an additional 69 shares during the period. MCF Advisors LLC purchased a new position in shares of Strategy during the 2nd quarter worth $35,000. Maseco LLP purchased a new position in Strategy during the 2nd quarter valued at about $36,000. Finally, AllSquare Wealth Management LLC boosted its holdings in Strategy by 100.0% during the 2nd quarter. AllSquare Wealth Management LLC now owns 100 shares of the software maker's stock valued at $40,000 after acquiring an additional 50 shares during the period. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.