Strategy (NASDAQ:MSTR) Upgraded to Strong-Buy at Zacks Research

Strategy (NASDAQ:MSTR) was upgraded by stock analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Several other brokerages also recently issued reports on MSTR. China Renaissance began coverage on shares of Strategy in a research report on Wednesday, October 15th. They set a “buy” rating and a $473.00 price target for the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Strategy in a research report on Monday, December 29th. Sanford C. Bernstein set a $450.00 target price on Strategy and gave the company an “outperform” rating in a research report on Monday, December 8th. Truist Financial set a $268.00 price target on Strategy in a research note on Friday, January 9th. Finally, TD Cowen restated a “buy” rating on shares of Strategy in a research note on Thursday, January 15th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $374.14.

Strategy Price Performance

Shares of NASDAQ:MSTR opened at $126.19 on Tuesday. The company has a market cap of $36.26 billion, a PE ratio of -6.86 and a beta of 3.54. Strategy has a fifty-two week low of $104.17 and a fifty-two week high of $457.22. The firm has a 50-day simple moving average of $159.41 and a 200 day simple moving average of $253.21. The company has a quick ratio of 0.66, a current ratio of 5.62 and a debt-to-equity ratio of 0.18.

Strategy (NASDAQ:MSTR) last issued its earnings results on Thursday, February 5th. The software maker reported ($42.93) EPS for the quarter, missing analysts’ consensus estimates of $46.02 by ($88.95). The company had revenue of $122.99 million during the quarter, compared to analyst estimates of $117.42 million. Strategy had a negative net margin of 806.34% and a negative return on equity of 8.74%. The business’s revenue was up 1.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($3.03) earnings per share.

Insider Buying and Selling

In other Strategy news, Director Carl J. Rickertsen bought 5,000 shares of Strategy stock in a transaction that occurred on Monday, January 12th. The stock was purchased at an average cost of $155.88 per share, for a total transaction of $779,400.00. Following the completion of the acquisition, the director owned 5,000 shares of the company’s stock, valued at approximately $779,400. This represents a ∞ increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Wei-Ming Shao sold 2,600 shares of the company’s stock in a transaction on Wednesday, November 19th. The shares were sold at an average price of $202.02, for a total value of $525,252.00. Following the completion of the transaction, the executive vice president directly owned 32,726 shares in the company, valued at $6,611,306.52. This represents a 7.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have acquired 7,112 shares of company stock worth $984,888 and have sold 5,243 shares worth $1,054,220. Insiders own 8.46% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Allspring Global Investments Holdings LLC acquired a new stake in Strategy during the 2nd quarter valued at $368,000. Yousif Capital Management LLC lifted its stake in Strategy by 6.9% in the 2nd quarter. Yousif Capital Management LLC now owns 3,110 shares of the software maker’s stock worth $1,257,000 after acquiring an additional 201 shares in the last quarter. Sequoia Financial Advisors LLC grew its stake in Strategy by 5.9% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 7,087 shares of the software maker’s stock valued at $2,865,000 after acquiring an additional 392 shares in the last quarter. Envestnet Portfolio Solutions Inc. purchased a new position in Strategy during the 2nd quarter valued at about $309,000. Finally, RFG Advisory LLC purchased a new stake in shares of Strategy in the second quarter worth approximately $258,000. 59.84% of the stock is owned by hedge funds and other institutional investors.

Strategy News Roundup

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Management commitment to accumulation — Executive chair Michael Saylor publicly said Strategy will keep buying bitcoin “every quarter” and will not sell its holdings, signaling a clear long‑term thesis that could pay off if BTC rallies. MSTR’s Michael Saylor says the company will buy ‘every quarter’ of Bitcoin ‘forever’
• Positive Sentiment: Fresh BTC purchases — Strategy disclosed an additional purchase of 1,142 BTC (~$90M), increasing its long‑term bitcoin position; continued accumulation reinforces the company’s playbook of using BTC as its primary asset exposure. Strategy acquires 1,142 bitcoin as portfolio drops below cost basis
• Neutral Sentiment: Refinancing stance reduces immediate forced‑sale risk but raises execution risk — Saylor said the company would “refinance the debt” rather than sell BTC if prices plunged, which mitigates imminent liquidation risk but depends on future credit markets and lenders’ willingness to roll debt. Michael Saylor downplays Strategy credit risk as bitcoin tumbles: ‘We’ll refinance the debt’
• Negative Sentiment: Direct BTC price correlation — Bitcoin falling below key levels (near $70k) is being reflected in MSTR’s stock performance because the firm’s equity moves roughly in step with the market value of its bitcoin holdings. That price sensitivity is driving investor selling. MSTR Stock Struggles as Bitcoin’s Value Dips Below $70,000
• Negative Sentiment: Financial & sentiment headwinds — Short interest has risen and analysts flag large unrealized losses, dilution/refinancing risk from convertible debt, and weak Q4 operating results (big EPS loss and negative margins), all of which increase downside risk and volatility for the equity. Why Strategy (MSTR) stock is down today Strategy Bitcoin Bet Deepens With New Equity Dilution And Volatility Risk

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.