Canaccord Genuity Group Lowers Strategy (NASDAQ:MSTR) Price Target to $130.00

Strategy (NASDAQ:MSTR) had its price target lowered by research analysts at Canaccord Genuity Group from $163.00 to $130.00 in a report released on Tuesday,Benzinga reports. The firm presently has a “buy” rating on the software maker’s stock. Canaccord Genuity Group’s price target would suggest a potential upside of 40.27% from the stock’s previous close.

Several other brokerages also recently issued reports on MSTR. Cantor Fitzgerald reissued an “overweight” rating on shares of Strategy in a research note on Monday, June 15th. Mizuho cut their price objective on shares of Strategy from $320.00 to $265.00 and set an “outperform” rating for the company in a report on Monday, June 1st. B. Riley Financial lifted their price objective on shares of Strategy from $200.00 to $215.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Weiss Ratings reissued a “hold (c)” rating on shares of Strategy in a report on Wednesday, June 24th. Finally, Citigroup restated a “buy” rating on shares of Strategy in a research report on Tuesday. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $311.57.

Strategy Trading Up 12.6%

Shares of MSTR stock opened at $92.68 on Tuesday. Strategy has a 52-week low of $81.81 and a 52-week high of $457.22. The company has a debt-to-equity ratio of 0.22, a quick ratio of 6.05 and a current ratio of 6.05. The firm has a market capitalization of $32.48 billion, a PE ratio of -2.31 and a beta of 3.50. The stock has a fifty day simple moving average of $147.65 and a two-hundred day simple moving average of $146.08.

Strategy (NASDAQ:MSTR) last announced its quarterly earnings data on Tuesday, May 5th. The software maker reported ($38.25) EPS for the quarter, missing the consensus estimate of ($0.86) by ($37.39). The business had revenue of $124.30 million during the quarter, compared to analysts’ expectations of $120.75 million. Strategy had a negative net margin of 2,482.01% and a negative return on equity of 26.97%. Strategy’s revenue was up 11.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($16.49) earnings per share. On average, analysts predict that Strategy will post 116.7 EPS for the current fiscal year.

Insider Activity at Strategy

In other Strategy news, CEO Phong Le sold 93,738 shares of Strategy stock in a transaction that occurred 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. The trade was a 43.87% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jarrod M. Patten sold 15,050 shares of the company’s stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $154.94, for a total value of $2,331,847.00. Following the sale, the director directly owned 28,000 shares in the company, valued at $4,338,320. This trade represents a 34.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders bought 11,166 shares of company stock valued at $1,014,265 and sold 193,622 shares valued at $25,189,621. 6.49% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Strategy

Large investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its position in Strategy by 21.0% during the fourth quarter. Vanguard Group Inc. now owns 24,062,886 shares of the software maker’s stock valued at $3,656,356,000 after purchasing an additional 4,178,611 shares during the last quarter. Capital International Investors increased its holdings in shares of Strategy by 37.3% in the 4th quarter. Capital International Investors now owns 20,614,868 shares of the software maker’s stock worth $3,132,460,000 after buying an additional 5,600,573 shares during the last quarter. Capital Research Global Investors increased its holdings in shares of Strategy by 66.7% in the 4th quarter. Capital Research Global Investors now owns 7,008,535 shares of the software maker’s stock worth $1,064,963,000 after buying an additional 2,803,277 shares during the last quarter. State Street Corp raised its position in shares of Strategy by 2.3% during the 4th quarter. State Street Corp now owns 6,127,301 shares of the software maker’s stock valued at $931,043,000 after buying an additional 138,253 shares in the last quarter. Finally, Amundi raised its position in shares of Strategy by 373.7% during the 4th quarter. Amundi now owns 4,790,702 shares of the software maker’s stock valued at $727,947,000 after buying an additional 3,779,340 shares in the last quarter. Institutional investors own 59.84% of the company’s stock.

Strategy News Roundup

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Authorizes up to $1.25 billion of Bitcoin sales, but only to build and replenish cash reserves and fund obligations, which reduces near-term liquidity concerns. Strategy Authorizes Up to $1.25 Billion in Bitcoin Sales, Launches $2 Billion Buyback Programs and Strengthens Cash Reserve
• Positive Sentiment: Launches separate repurchase programs of up to $1 billion each for common stock and preferred securities, signaling management believes the shares are undervalued. Strategy shares jump after unveiling framework that could allow Bitcoin sales
• Positive Sentiment: Raises the STRC preferred dividend rate to 12% and says its roughly $2.55 billion cash reserve covers about 17 months of preferred dividends and interest, easing concerns about funding pressure. Strategy opens the door to selling bitcoin under new capital plan. Here’s what it means
• Neutral Sentiment: Management is trying to reposition Strategy from a pure Bitcoin accumulator into a more flexible capital-management story, which may help sentiment but also changes the investment case. Strategy Adopts Framework Covering USD Reserve Policy, Dividends, Repurchases, BTC Monetization
• Negative Sentiment: The announcement also reinforces that the company may need to monetize Bitcoin to support dividends and buybacks, which highlights pressure on its funding model and has sparked criticism that Strategy is becoming a “Bitcoin seller.” Strategy can now sell bitcoin to buy back stock — the opposite of what it’s been doing
• Negative Sentiment: Broader crypto weakness and reports that Strategy’s valuation has fallen below the value of its Bitcoin holdings continue to weigh on confidence in the stock’s long-term “Bitcoin treasury” premium. Strategy’s valuation falls below bitcoin holdings as crypto sentiment sours

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.