Strategy (NASDAQ:MSTR) Trading 14.3% Higher – Still a Buy?

Strategy Inc (NASDAQ:MSTR)’s stock price shot up 14.3% during trading on Friday . The company traded as high as $123.25 and last traded at $122.2720. 7,995,407 shares changed hands during mid-day trading, a decline of 66% from the average session volume of 23,404,543 shares. The stock had previously closed at $106.99.

Strategy News Roundup

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Analyst support: TD Cowen reiterated a Buy and kept a $440 price target, arguing there’s “no reasonable scenario” that would force Strategy to sell its Bitcoin holdings — that endorsement helped fuel the rally. TD Cowen Maintains $440 Target
• Positive Sentiment: Earnings revenue beat and software growth: Q4 revenue (~$123M) topped expectations and subscription/license revenue showed steady, higher‑margin growth — a reminder Strategy still has an operating business beyond its Bitcoin treasury. Earnings Beat Drives Rally
• Neutral Sentiment: Technical/stock‑chart view: Some traders and commentators flagged that MSTR has reached prior support levels and is showing a short-term bounce after a steep selloff, which can attract tactical buyers. Is This The Bottom?
• Negative Sentiment: Huge, accounting-driven Bitcoin loss: Strategy reported a Q4 unrealized/operating hit (widely reported as ~$12.4B) that drove a massive EPS swing to a loss and sent shares sharply lower earlier in the week. That disclosure materially increases headline volatility for MSTR. Q4 Bitcoin Loss Reported
• Negative Sentiment: Balance-sheet/leverage risk: Coverage highlights that Strategy funds large BTC purchases with debt/preferred capital; declines in BTC amplify equity losses and raise questions about potential margin, covenant or liquidity stress if crypto weakens further. MarketBeat on Leverage Risk
• Negative Sentiment: Analyst/market pushback and short‑seller commentary: Some firms have cut price targets and critics (including noted short sellers) intensified campaigns after the results, increasing downside sentiment and trading volatility. Short Seller Criticism
• Neutral Sentiment: Scale of BTC holdings: Strategy reports owning ~713,502 BTC (roughly 3–3.4% of total supply), which underpins both the stock’s upside in a BTC rally and its sensitivity to any BTC decline. That concentration is the core thesis and core risk. BTC Holdings Disclosure

Analysts Set New Price Targets

A number of research firms have recently weighed in on MSTR. Benchmark reissued a “buy” rating on shares of Strategy in a report on Monday, December 1st. BTIG Research set a $250.00 price objective on shares of Strategy and gave the stock a “buy” rating in a research note on Friday. Sanford C. Bernstein set a $450.00 target price on Strategy and gave the company an “outperform” rating in a report on Monday, December 8th. Mizuho reduced their price objective on shares of Strategy from $484.00 to $403.00 and set an “outperform” rating on the stock in a research note on Friday, January 16th. Finally, HC Wainwright restated a “buy” rating on shares of Strategy in a research report on Friday. Twelve investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $386.53.

Strategy Stock Up 23.9%

The company has a quick ratio of 0.66, a current ratio of 0.66 and a debt-to-equity ratio of 0.16. The company has a market capitalization of $38.08 billion, a price-to-earnings ratio of 6.17 and a beta of 3.54. The business has a 50-day moving average price of $163.15 and a 200-day moving average price of $262.24.

Strategy (NASDAQ:MSTR) last announced its quarterly earnings data on Thursday, February 5th. The software maker reported ($42.93) EPS for the quarter, missing analysts’ consensus estimates of $46.02 by ($88.95). Strategy had a return on equity of 20.98% and a net margin of 1,667.09%.The business had revenue of $122.99 million for the quarter, compared to analyst estimates of $117.42 million. During the same quarter in the previous year, the business posted ($3.03) earnings per share. The company’s revenue was up 1.9% compared to the same quarter last year.

Insider Activity

In related 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 acquisition, the director owned 5,000 shares in the company, valued at $779,400. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Jane A. Dietze purchased 1,100 shares of the company’s stock in a transaction dated Friday, November 21st. The stock was purchased at an average cost of $95.28 per share, for a total transaction of $104,808.00. Following the transaction, the director owned 2,600 shares of the company’s stock, valued at approximately $247,728. This trade represents a 73.33% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders have purchased 7,112 shares of company stock valued at $984,888 and have sold 13,177 shares valued at $2,843,166. 8.46% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Strategy

Institutional investors have recently added to or reduced their stakes in the company. Dogwood Wealth Management LLC raised its stake 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 purchasing an additional 140 shares in the last quarter. Pilgrim Partners Asia Pte Ltd acquired a new stake in Strategy during the 3rd quarter valued at $32,000. Quent Capital LLC acquired a new stake in shares of Strategy in the third quarter valued at $33,000. Binnacle Investments Inc lifted its position in shares of 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 purchasing an additional 69 shares in the last quarter. Finally, SOA Wealth Advisors LLC. boosted its position in Strategy by 44.4% in the 3rd quarter. SOA Wealth Advisors LLC. now owns 117 shares of the software maker’s stock valued at $38,000 after buying an additional 36 shares during the last quarter. 59.84% of the stock is owned by institutional investors and hedge funds.

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.