Strategy (NASDAQ:MSTR) Trading Down 3.9% Following Analyst Downgrade

Strategy Inc (NASDAQ:MSTR)’s stock price traded down 3.9% during trading on Tuesday after Citigroup lowered their price target on the stock from $485.00 to $325.00. Citigroup currently has a buy rating on the stock. Strategy traded as low as $156.50 and last traded at $157.88. 15,681,146 shares changed hands during trading, an increase of 3% from the average session volume of 15,241,919 shares. The stock had previously closed at $164.32.

MSTR has been the topic of a number of other research reports. Weiss Ratings reiterated a “hold (c+)” rating on shares of Strategy in a research report on Monday, December 15th. Wells Fargo & Company restated an “equal weight” rating and issued a $54.00 price target (down from $65.00) on shares of Strategy in a research note on Tuesday, September 30th. Monness Crespi & Hardt upgraded shares of Strategy from a “sell” rating to a “neutral” rating in a research report on Monday, November 10th. Cowen reissued a “buy” rating on shares of Strategy in a research note on Friday, October 31st. Finally, HC Wainwright lowered their price target on shares of Strategy from $521.00 to $475.00 and set a “buy” rating for the company in a report on Monday, November 3rd. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Strategy presently has an average rating of “Moderate Buy” and an average price target of $465.13.

Insider Transactions at Strategy

In other news, EVP Wei-Ming Shao sold 30,000 shares of the company’s stock in a transaction on Tuesday, October 7th. The shares were sold at an average price of $357.37, for a total value of $10,721,100.00. Following the sale, the executive vice president directly owned 12,726 shares of the company’s stock, valued at approximately $4,547,890.62. This represents a 70.21% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Jarrod M. Patten bought 12,000 shares of the stock in a transaction that occurred on Friday, October 17th. The shares were purchased at an average cost of $96.88 per share, with a total value of $1,162,560.00. Following the purchase, the director directly owned 29,335 shares of the company’s stock, valued at $2,841,974.80. The trade was a 69.22% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders have bought 24,880 shares of company stock worth $2,421,219 and have sold 43,177 shares worth $13,564,266. Corporate insiders own 8.46% of the company’s stock.

Key Stores Impacting Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Institutional demand is reportedly rising, which analysts say could support a recovery in MSTR shares if buying persists. MSTR Stock Recovery Can Begin Anytime as Institutional Demand Jumps
• Positive Sentiment: Zacks notes Strategy accelerated Bitcoin accumulation in 2025 and boosted its BTC yield to ~26%; regulatory clarity and new credit access are cited as tailwinds to bitcoin-related returns. That suggests the company’s bitcoin strategy can still generate strong underlying NAV accretion over time. Strategy’s Bitcoin Accretion Continues
• Positive Sentiment: CEO commentary highlights large banks building bitcoin services — a potential structural tailwind for Strategy’s business model and broader institutional adoption of BTC. Strategy CEO Says Big Banks Are Scrambling To Build Bitcoin Services
• Positive Sentiment: Strategy raised roughly $748M in an ATM offering, boosting its USD reserves to about $2.19–$2.2B — increasing liquidity and giving the company flexibility to weather crypto volatility. That cash buffer reduces short‑term solvency risk. Strategy Raises $748M in Cash
• Neutral Sentiment: Multiple outlets report the company is temporarily pausing Bitcoin buys while it rebalances — this is a tactical move that preserves liquidity but pauses NAV growth from new bitcoin accumulation. Impact depends on BTC price path and timing of resumed buys. Strategy Pauses Bitcoin Purchases
• Negative Sentiment: The ATM share sale that produced the $748M proceeds increases share count (near-term dilution) and some investors see equity issuance plus no BTC purchases this week as bearish for the stock’s immediate momentum. Strategy Sells $748M In Stock But Buys Zero BTC
• Negative Sentiment: Analyst adjustments: Citigroup trimmed its price target (though it kept a buy rating), a reminder some sell‑side views are lowering near‑term expectations after 2025 share weakness. That can put pressure on sentiment until clarity returns. Citigroup Lowers Price Target

Institutional Investors Weigh In On Strategy

A number of large investors have recently bought and sold shares of the stock. Pilgrim Partners Asia Pte Ltd purchased a new stake in shares of Strategy in the third quarter worth approximately $32,000. Quent Capital LLC bought a new stake in Strategy during the third quarter worth $33,000. Binnacle Investments Inc grew its holdings in Strategy by 492.9% during the second quarter. Binnacle Investments Inc now owns 83 shares of the software maker’s stock worth $34,000 after buying an additional 69 shares in the last quarter. MCF Advisors LLC purchased a new stake in Strategy in the 2nd quarter valued at $35,000. Finally, Maseco LLP bought a new position in Strategy during the 2nd quarter valued at $36,000. 59.84% of the stock is currently owned by institutional investors and hedge funds.

Strategy Trading Down 3.9%

The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.66 and a current ratio of 0.66. The firm has a market capitalization of $45.37 billion, a P/E ratio of 7.34 and a beta of 3.40. The firm has a 50 day simple moving average of $219.42 and a two-hundred day simple moving average of $316.47.

Strategy (NASDAQ:MSTR) last announced its earnings results on Thursday, October 30th. The software maker reported $8.42 EPS for the quarter, beating the consensus estimate of ($0.10) by $8.52. Strategy had a net margin of 1,667.09% and a return on equity of 20.98%. The company had revenue of $128.69 million during the quarter, compared to the consensus estimate of $116.65 million. During the same quarter in the prior year, the company posted ($1.56) earnings per share. The firm’s revenue for the quarter was up 10.9% on a year-over-year basis. Strategy has set its FY 2025 guidance at 80.000-80.000 EPS.

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.