Strategy (NASDAQ:MSTR) Lowered to “Strong Sell” Rating by Zacks Research

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

A number of other analysts also recently weighed in on the company. Cantor Fitzgerald restated an “overweight” rating on shares of Strategy in a research note on Monday, May 11th. TD Cowen boosted their target price on Strategy from $395.00 to $400.00 and gave the stock a “buy” rating in a research report on Tuesday. HC Wainwright reiterated a “buy” rating on shares of Strategy in a research report on Friday, February 6th. B. Riley Financial boosted their target price on Strategy from $200.00 to $215.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Strategy in a research report on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $322.21.

Strategy Stock Down 1.2%

Strategy stock opened at $164.63 on Monday. The company has a debt-to-equity ratio of 0.22, a current ratio of 6.05 and a quick ratio of 6.05. Strategy has a 1-year low of $104.17 and a 1-year high of $457.22. The company has a market cap of $57.69 billion, a PE ratio of -4.10 and a beta of 3.59. The stock’s 50 day moving average price is $151.27 and its 200 day moving average price is $162.03.

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

Insider Buying and Selling

In other news, Director Jarrod M. Patten sold 1,500 shares of the company’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $190.85, for a total value of $286,275.00. Following the sale, the director directly owned 28,000 shares in the company, valued at $5,343,800. This represents a 5.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders sold 30,702 shares of company stock worth $4,707,839 in the last quarter. 6.49% of the stock is currently owned by insiders.

Institutional Trading of Strategy

Institutional investors and hedge funds have recently made changes to their positions in the stock. Fideuram Asset Management Ireland dac purchased a new stake in shares of Strategy in the fourth quarter valued at $25,000. Westfuller Advisors LLC purchased a new stake in shares of Strategy in the first quarter valued at $25,000. Dogwood Wealth Management LLC lifted its position in shares of Strategy by 280.0% in the fourth quarter. Dogwood Wealth Management LLC now owns 190 shares of the software maker’s stock valued at $29,000 after acquiring an additional 140 shares in the last quarter. Wilkerson Advisory Group LLC purchased a new stake in shares of Strategy in the fourth quarter valued at $30,000. Finally, Pilgrim Partners Asia Pte Ltd purchased a new stake in shares of Strategy in the third quarter valued at $32,000. 59.84% of the stock is currently owned by hedge funds and other institutional investors.

Strategy News Summary

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy keeps expanding its Bitcoin treasury, buying 24,869 BTC for about $2.01 billion and bringing total holdings to 843,738 BTC, reinforcing its role as the biggest public Bitcoin holder. Article Title
• Positive Sentiment: TD Cowen raised its price target on MSTR to $400 and kept a Buy rating, signaling continued Wall Street confidence in the Bitcoin accumulation strategy. Article Title
• Positive Sentiment: Management’s comments that Strategy could eventually use Bitcoin sales to support dividends or debt obligations are also being viewed by some as a way to broaden the investor base and add a potential income catalyst. Article Title
• Neutral Sentiment: Insider selling added to the news flow, with director Jarrod Patten selling 1,500 shares; while not huge, it can still make some investors cautious. Article Title
• Negative Sentiment: Bitcoin’s sharp pullback, ETF outflows, and heavy liquidations are pressuring MSTR because the stock tends to move with crypto prices and investor risk appetite. Article Title
• Negative Sentiment: Some market coverage framed the latest Bitcoin buying spree as increasing balance-sheet risk, especially since Strategy is now willing to consider asset sales to meet obligations. Article Title

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.