Strategy (NASDAQ:MSTR) Raised to Hold at Zacks Research

Strategy (NASDAQ:MSTR) was upgraded by stock analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a report released on Monday,Zacks.com reports.

A number of other research firms have also recently issued reports on MSTR. Cantor Fitzgerald reiterated an “overweight” rating on shares of Strategy in a report on Monday, June 15th. Texas Capital upgraded Strategy to a “strong-buy” rating in a research report on Thursday, March 19th. Citigroup reaffirmed a “buy” rating and issued a $136.00 target price (down from $260.00) on shares of Strategy in a research note on Tuesday, June 30th. Mizuho decreased their price target on shares of Strategy from $265.00 to $213.00 and set an “outperform” rating on the stock in a research note on Tuesday. Finally, Credit Suisse Group set a $250.00 price objective on shares of Strategy in a report on Tuesday, June 30th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $275.40.

Strategy Stock Performance

Strategy stock opened at $97.36 on Monday. Strategy has a fifty-two week low of $81.81 and a fifty-two 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 stock has a market cap of $34.12 billion, a P/E ratio of -2.42 and a beta of 3.54. The firm’s fifty day moving average price is $138.77 and its 200-day moving average price is $142.88.

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

Insider Buying and Selling

In related news, CEO Phong Le acquired 11,000 shares of the stock in a transaction on Monday, June 22nd. The stock was purchased at an average price of $90.80 per share, for a total transaction of $998,800.00. Following the completion of the transaction, the chief executive officer owned 11,000 shares of the company’s stock, valued at $998,800. This trade represents a ∞ increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Jarrod M. Patten sold 1,500 shares of the stock in a transaction that occurred on Tuesday, June 23rd. The shares were sold at an average price of $106.08, for a total value of $159,120.00. Following the sale, the director directly owned 28,406 shares of the company’s stock, valued at approximately $3,013,308.48. This trade represents a 5.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders purchased 11,166 shares of company stock worth $1,014,265 and sold 190,822 shares worth $24,833,559. Insiders own 6.49% of the company’s stock.

Institutional Investors Weigh In On Strategy

Several institutional investors have recently added to or reduced their stakes in MSTR. Vanguard Group Inc. grew its holdings in Strategy by 21.0% in the 4th quarter. Vanguard Group Inc. now owns 24,062,886 shares of the software maker’s stock worth $3,656,356,000 after acquiring an additional 4,178,611 shares during the last quarter. Capital International Investors raised its stake in shares of Strategy by 37.3% during the fourth quarter. Capital International Investors now owns 20,614,868 shares of the software maker’s stock valued at $3,132,460,000 after acquiring an additional 5,600,573 shares during the last quarter. Capital Research Global Investors boosted its holdings in shares of Strategy by 66.7% during the fourth quarter. Capital Research Global Investors now owns 7,008,535 shares of the software maker’s stock worth $1,064,963,000 after purchasing an additional 2,803,277 shares during the period. State Street Corp boosted its holdings in shares of Strategy by 2.3% during the fourth quarter. State Street Corp now owns 6,127,301 shares of the software maker’s stock worth $931,043,000 after purchasing an additional 138,253 shares during the period. Finally, Amundi grew its stake in shares of Strategy by 373.7% in the fourth quarter. Amundi now owns 4,790,702 shares of the software maker’s stock worth $727,947,000 after purchasing an additional 3,779,340 shares during the last quarter. Hedge funds and other institutional investors own 59.84% of the company’s stock.

Strategy News Roundup

Here are the key news stories impacting Strategy this week:

• Neutral Sentiment: Strategy said the Bitcoin sale was part of its new monetization framework and that it still held 843,775 BTC plus $2.55 billion in dollar reserves, suggesting it has liquidity to support preferred payouts. Strategy Sells 3,588 Bitcoin for $216 Million to Fund Preferred Dividends
• Neutral Sentiment: Grayscale and Bernstein offered a more constructive read, arguing the sale may reduce financing risk and help stabilize the balance sheet, while Bernstein kept a $150,000 year-end Bitcoin target. Strategy sells 3,588 Bitcoin for $216M to fund dividends, keeps $2.55B reserve intact
• Negative Sentiment: Mizuho cut its price target on Strategy to $213 from $265, reflecting a more cautious view as the company’s Bitcoin monetization plan and sale of BTC below its cost basis raise valuation concerns. Strategy had its price target lowered by Mizuho from $265.00 to $213.00
• Negative Sentiment: Other coverage flagged that the sale may signal Strategy is moving away from being a pure Bitcoin accumulator, which could unsettle bulls who bought the stock as a leveraged Bitcoin proxy. Strategy is losing a lot of money on bitcoin. Here’s why it’s selling anyway.

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.