TD Cowen Issues Pessimistic Forecast for Strategy (NASDAQ:MSTR) Stock Price

Key Points

• TD Cowen cut its price target on Strategy from $400 to $260, though it kept a Buy rating. The new target still implies nearly 199% upside from the current share price.
• Strategy’s stock has been under pressure, trading at $86.96 on Tuesday versus a 52-week high of $457.22. The company also reported a much larger-than-expected quarterly loss, with EPS of -$38.25 versus estimates of -$0.86.
• Insider selling has been notable, including recent sales by a director and the CEO, while the company’s new capital framework allows Bitcoin sales and authorizes up to $2 billion in buybacks. That shift has drawn mixed reactions, with some analysts still positive but others viewing it as a sign of pressure on the company’s Bitcoin-heavy strategy.

Strategy (NASDAQ:MSTR - Get Free Report) had its target price cut by research analysts at TD Cowen from $400.00 to $260.00 in a research note issued on Tuesday,Benzinga reports. The brokerage currently has a "buy" rating on the software maker's stock. TD Cowen's price target indicates a potential upside of 198.97% from the company's current price.

MSTR has been the subject of a number of other research reports. Citigroup reaffirmed a "buy" rating on shares of Strategy in a research note on Tuesday. Canaccord Genuity Group dropped their target price on Strategy from $163.00 to $130.00 and set a "buy" rating for the company in a research report on Tuesday. Zacks Research lowered shares of Strategy from a "hold" rating to a "strong sell" rating in a report on Monday, May 18th. B. Riley Financial increased their price objective on Strategy from $200.00 to $215.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Finally, Mizuho cut their price objective on Strategy from $320.00 to $265.00 and set an "outperform" rating on the stock in a research note on Monday, June 1st. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $301.57.

Strategy Stock Performance

Shares of NASDAQ:MSTR traded down $5.72 during trading on Tuesday, reaching $86.96. 7,201,359 shares of the stock were exchanged, compared to its average volume of 21,386,557. The stock has a 50-day moving average price of $147.65 and a 200-day moving average price of $146.08. The firm has a market cap of $30.48 billion, a PE ratio of -2.16 and a beta of 3.50. Strategy has a 12 month low of $81.81 and a 12 month high of $457.22. The company has a current ratio of 6.05, a quick ratio of 6.05 and a debt-to-equity ratio of 0.22.

Strategy (NASDAQ:MSTR - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The software maker reported ($38.25) earnings per share for the quarter, missing the consensus estimate 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 the consensus estimate of $120.75 million. During the same quarter in the previous year, the business earned ($16.49) EPS. The firm's quarterly revenue was up 11.9% on a year-over-year basis. Research analysts expect that Strategy will post 116.7 EPS for the current fiscal year.

Insider Buying and Selling

In other Strategy news, Director Jarrod M. Patten sold 15,050 shares of Strategy stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $154.94, for a total transaction of $2,331,847.00. Following the completion of the transaction, the director owned 28,000 shares in the company, valued at approximately $4,338,320. The trade was a 34.96% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Phong Le sold 93,738 shares of the company's stock in a transaction on Friday, June 5th. The stock was sold at an average price of $118.73, for a total value of $11,129,512.74. Following the sale, the chief executive officer owned 119,925 shares of the company's stock, valued at $14,238,695.25. This trade represents a 43.87% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have bought 11,166 shares of company stock worth $1,014,265 and have sold 193,622 shares worth $25,189,621. 6.49% of the stock is owned by company insiders.

Institutional Investors Weigh In On Strategy

A number of institutional investors have recently added to or reduced their stakes in the company. Fideuram Asset Management Ireland dac purchased a new position in Strategy in the fourth quarter worth $25,000. Westfuller Advisors LLC bought a new stake in shares of Strategy in the first quarter valued at $25,000. Dogwood Wealth Management LLC grew its stake in shares of Strategy by 280.0% during the 4th quarter. Dogwood Wealth Management LLC now owns 190 shares of the software maker's stock worth $29,000 after acquiring an additional 140 shares during the period. Wilkerson Advisory Group LLC bought a new stake in Strategy in the 4th quarter valued at about $30,000. Finally, Binnacle Investments Inc boosted its holdings in Strategy by 492.9% in the 2nd quarter. Binnacle Investments Inc now owns 83 shares of the software maker's stock worth $34,000 after buying an additional 69 shares during the period. 59.84% of the stock is owned by institutional investors.

Key Stories Impacting Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy unveiled a Digital Credit Capital Framework that allows Bitcoin sales, boosts liquidity, raises the STRC dividend to 12%, and authorizes up to $2 billion in buybacks, which investors may see as a stabilizing move. Article: Strategy Authorizes Up to $1.25 Billion in Bitcoin Sales, Launches $2 Billion Buyback Programs and Strengthens Cash Reserve
• Neutral Sentiment: TD Cowen and Canaccord cut MSTR price targets but kept Buy ratings, suggesting Wall Street still sees upside despite a more cautious Bitcoin outlook. Article: Strategy (MSTR) Stock Faces Price Target Cut Amid Bitcoin Strategy Shift
• Negative Sentiment: Bearish coverage says Strategy’s new plan effectively turns it into a Bitcoin seller, fueling concern that the company’s core treasury model is under pressure as crypto prices weaken. Article: Strategy can now sell bitcoin to buy back stock — the opposite of what it’s been doing

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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