Traders Buy Large Volume of Strategy Call Options (NASDAQ:MSTR)

Key Points

• Unusually heavy bullish options activity: Investors bought 850,154 Strategy call options, about 79% above the typical volume of 476,246 contracts. MSTR opened at $119.25 and was reported up 6.1%.
• Earnings remained weak: Strategy reported a quarterly loss of $24.45 per share, far below the expected loss of $2.19, while revenue reached $122.37 million and rose 6.9% year over year. Analysts expect a full-year loss of $23.76 per share.
• Analyst sentiment is mixed but leans positive: The stock has a consensus “Moderate Buy” rating and an average price target of $239.81, despite some recent target cuts and sell-rating downgrades. Bitcoin’s sharp rally also boosted sentiment because investors often use MSTR as a leveraged Bitcoin proxy.

Strategy Inc (NASDAQ:MSTR - Get Free Report) was the target of unusually large options trading activity on Friday. Investors purchased 850,154 call options on the company. This represents an increase of approximately 79% compared to the typical volume of 476,246 call options.

Strategy Trading Up 6.1%

MSTR opened at $119.25 on Friday. Strategy has a 52 week low of $81.81 and a 52 week high of $365.21. The company has a quick ratio of 5.39, a current ratio of 5.39 and a debt-to-equity ratio of 0.22. The business has a fifty day simple moving average of $99.17 and a 200-day simple moving average of $128.30. The firm has a market cap of $45.82 billion, a P/E ratio of -1.23 and a beta of 3.54.

Strategy (NASDAQ:MSTR - Get Free Report) last posted its quarterly earnings data on Friday, July 31st. The software maker reported ($24.45) earnings per share (EPS) for the quarter, missing the consensus estimate of ($2.19) by ($22.26). Strategy had a negative net margin of 6,102.95% and a negative return on equity of 74.18%. The firm had revenue of $122.37 million during the quarter, compared to analysts' expectations of $122.90 million. During the same quarter in the prior year, the firm posted $32.52 EPS. Strategy's quarterly revenue was up 6.9% compared to the same quarter last year. On average, equities analysts expect that Strategy will post -23.76 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on MSTR. BTIG Research reiterated a "buy" rating and set a $250.00 price target on shares of Strategy in a report on Friday, July 31st. B. Riley Financial reduced their price objective on shares of Strategy from $215.00 to $155.00 and set a "buy" rating on the stock in a report on Monday, August 3rd. Wall Street Zen raised shares of Strategy from a "strong sell" rating to a "sell" rating in a research report on Sunday, August 16th. Barclays reaffirmed an "overweight" rating and set a $125.00 target price (down from $130.00) on shares of Strategy in a research note on Monday, August 3rd. Finally, Weiss Ratings cut shares of Strategy from a "hold (c)" rating to a "sell (d)" rating in a research report on Tuesday, August 4th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $239.81.

Insider Activity

In other Strategy news, CEO Phong Le acquired 11,000 shares of the firm's stock in a transaction that occurred on Monday, June 22nd. The shares were purchased at an average cost of $90.80 per share, for a total transaction of $998,800.00. Following the completion of the acquisition, the chief executive officer owned 11,000 shares of the company's stock, valued at approximately $998,800. The trade was a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CAO Jeanine Montgomery sold 354 shares of the company's stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $123.84, for a total value of $43,839.36. Following the completion of the transaction, the chief accounting officer owned 11,209 shares in the company, valued at $1,388,122.56. This represents a 3.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 165,325 shares of company stock worth $20,341,328 in the last 90 days. 6.49% of the stock is owned by corporate insiders.

Institutional Trading of Strategy

Institutional investors and hedge funds have recently bought and sold shares of the business. TD Waterhouse Canada Inc. grew its holdings in shares of Strategy by 25.8% in the second quarter. TD Waterhouse Canada Inc. now owns 815 shares of the software maker's stock valued at $76,000 after purchasing an additional 167 shares in the last quarter. NEOS Investment Management LLC lifted its holdings in Strategy by 29.0% during the 2nd quarter. NEOS Investment Management LLC now owns 183,301 shares of the software maker's stock worth $15,934,000 after buying an additional 41,261 shares in the last quarter. Beacon Capital Management LLC lifted its holdings in Strategy by 2.3% during the 2nd quarter. Beacon Capital Management LLC now owns 5,810 shares of the software maker's stock worth $505,000 after buying an additional 128 shares in the last quarter. Continuum Advisory LLC purchased a new position in Strategy in the 2nd quarter valued at approximately $26,000. Finally, Nykredit A S purchased a new position in Strategy in the 2nd quarter valued at approximately $2,383,000. 59.84% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Bitcoin climbed more than 20% over two days and approached or exceeded $77,000–$79,000, pushing Strategy’s 840,447-BTC holdings from a substantial unrealized loss to an estimated paper gain of roughly $1.4 billion. Because investors often use MSTR as a leveraged Bitcoin proxy, the cryptocurrency’s move amplified demand for the stock. MSTR Jumps to $120 on Bitcoin Boost to $77,000
• Positive Sentiment: Broader crypto-market momentum was supported by President Donald Trump’s call for Congress to advance the CLARITY Act and establish clearer digital-asset regulations, lifting sentiment across crypto-related stocks. Bitcoin, crypto shares climb after Trump pushes Clarity Act
• Positive Sentiment: Strategy’s Bitcoin holdings briefly moved above their reported average cost of approximately $75,385 per coin. The company also repurchased about $347 million of STRC preferred stock, supporting its broader capital-management strategy. Strategy Sits on $1.4B Bitcoin Profit

Strategy Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source