TD Cowen Forecasts Strong Price Appreciation for Strategy (NASDAQ:MSTR) Stock

Key Points

• TD Cowen raised its price target on Strategy (NASDAQ:MSTR) to $400 from $395 and kept a buy rating, implying about 141.8% upside from the prior close.
• Despite that bullish call, analyst views remain mixed overall: the consensus rating is Moderate Buy with an average price target of $322.21, while some firms have recently downgraded or only maintained neutral ratings.
• Strategy shares were down slightly to $165.42, and the company continues to draw attention for its Bitcoin-heavy strategy as well as recent earnings that showed a large loss per share but revenue above estimates.

Strategy (NASDAQ:MSTR - Get Free Report) had its price target hoisted by equities researchers at TD Cowen from $395.00 to $400.00 in a note issued to investors on Tuesday,Benzinga reports. The firm presently has a "buy" rating on the software maker's stock. TD Cowen's price objective would indicate a potential upside of 141.80% from the company's previous close.

Several other research firms also recently weighed in on MSTR. Zacks Research downgraded shares of Strategy from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 7th. Texas Capital raised shares of Strategy to a "strong-buy" rating in a research report on Thursday, March 19th. Cantor Fitzgerald restated an "overweight" rating on shares of Strategy in a report on Monday, May 11th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Strategy in a research report on Friday, March 27th. Finally, Canaccord Genuity Group set a $224.00 price target on Strategy and gave the company a "buy" rating in a research note on Thursday, May 7th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $322.21.

Strategy Stock Down 0.7%

Strategy stock traded down $1.21 during mid-day trading on Tuesday, reaching $165.42. The stock had a trading volume of 2,009,623 shares, compared to its average volume of 20,848,494. The firm has a market capitalization of $57.97 billion, a PE ratio of -4.12 and a beta of 3.59. Strategy has a fifty-two week low of $104.17 and a fifty-two week high of $457.22. The stock's 50-day simple moving average is $150.65 and its 200-day simple moving average is $162.81. The company has a debt-to-equity ratio of 0.22, a quick ratio of 6.05 and a current ratio of 6.05.

Strategy (NASDAQ:MSTR - Get Free Report) last issued its earnings results on Tuesday, May 5th. The software maker reported ($38.25) earnings per share for the quarter, missing analysts' consensus estimates of ($0.86) by ($37.39). Strategy had a negative return on equity of 26.97% and a negative net margin of 2,482.01%.The firm had revenue of $124.30 million for the quarter, compared to analyst estimates of $120.75 million. During the same period in the previous year, the company earned ($16.49) earnings per share. Strategy's revenue for the quarter was up 11.9% compared to the same quarter last year. On average, sell-side analysts forecast that Strategy will post 116.7 EPS for the current fiscal year.

Insider Activity

In other news, Director Jarrod M. Patten sold 1,500 shares of the stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $190.85, for a total value of $286,275.00. Following the completion of the sale, the director owned 28,000 shares in the company, valued at $5,343,800. This represents a 5.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. In the last three months, insiders have sold 30,702 shares of company stock valued at $4,707,839. Corporate insiders own 6.49% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of MSTR. Capital International Investors boosted its stake in Strategy by 37.3% in the fourth quarter. Capital International Investors now owns 20,614,868 shares of the software maker's stock valued at $3,132,460,000 after acquiring an additional 5,600,573 shares during the last quarter. Vanguard Group Inc. increased its stake in shares of Strategy by 21.0% during the 4th quarter. Vanguard Group Inc. now owns 24,062,886 shares of the software maker's stock worth $3,656,356,000 after purchasing an additional 4,178,611 shares during the last quarter. Amundi raised its holdings in shares of Strategy by 373.7% in the 4th quarter. Amundi now owns 4,790,702 shares of the software maker's stock worth $727,947,000 after purchasing an additional 3,779,340 shares during the period. Norges Bank bought a new stake in shares of Strategy in the 4th quarter worth approximately $536,140,000. Finally, Capital Research Global Investors lifted its stake in Strategy by 66.7% in the fourth quarter. Capital Research Global Investors now owns 7,008,535 shares of the software maker's stock valued at $1,064,963,000 after purchasing an additional 2,803,277 shares during the last quarter. Institutional investors own 59.84% of the company's stock.

Trending Headlines about Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: TD Cowen reportedly sees substantial upside in Strategy (MSTR), reinforcing bullish analyst sentiment around the stock’s Bitcoin-driven strategy. Article Title
• Positive Sentiment: The company’s massive Bitcoin accumulation keeps it at the center of the institutional crypto trade and may support shares if Bitcoin stabilizes or rebounds. Article Title
• Neutral Sentiment: Strategy funded much of the buy through its STRC preferred stock, which shows strong demand but also adds complexity to the capital structure. Article Title
• Neutral Sentiment: A director also disclosed a relatively small stock sale, which is worth noting but is unlikely to be the main driver of trading today. Article Title
• Negative Sentiment: Bitcoin weakness and rising crypto liquidations are a headwind for Strategy (MSTR), since the stock tends to trade as a leveraged bet on BTC. Article Title
• Negative Sentiment: Reports that Strategy may need to consider Bitcoin sales for obligations have raised concerns about higher financial risk tied to its treasury model. Article Title

About Strategy

Strategy, formerly known as MicroStrategy, Incorporated NASDAQ: MSTR is a global provider of enterprise analytics and mobility software. The company’s flagship platform offers business intelligence, data discovery, and advanced visualizations that enable organizations to analyze large volumes of data and deliver actionable insights. In addition to traditional on-premises deployments, Strategy provides a range of cloud-based services and managed offerings that allow customers to leverage the power of its analytics tools without managing complex infrastructure.

Founded in 1989 by Michael J.

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