Strive (NASDAQ:ASST) Sees Strong Trading Volume – Here’s Why

Strive, Inc. (NASDAQ:ASST) saw unusually-high trading volume on Wednesday. 5,674,659 shares traded hands during mid-day trading, an increase of 7% from the previous session’s volume of 5,305,507 shares. The stock last traded at $25.2130 and had previously closed at $27.59.

Key Strive News

Here are the key news stories impacting Strive this week:

• Positive Sentiment: Strive plans to raise approximately $500 million through an offering of 5 million shares of its 15% SATS preferred stock. The proceeds are intended primarily for additional Bitcoin purchases, potentially increasing the company’s Bitcoin holdings and exposure to further cryptocurrency price gains. Strive raising $500 million to buy additional bitcoin with new preferred share class
• Positive Sentiment: The company reportedly added 3,311 Bitcoin in a purchase valued at roughly $280 million, highlighting its aggressive accumulation strategy and helping differentiate Strive from larger Bitcoin-treasury companies. Strive adds 3311 Bitcoin
• Positive Sentiment: Several reports said Strive surpassed Strategy, formerly MicroStrategy, as the largest Bitcoin buyer over the latest reported week. Strategy executive Michael Saylor reportedly praised Strive’s purchase, adding visibility to ASST’s Bitcoin-focused investment story. Saylor cheers Strive’s Bitcoin buy
• Positive Sentiment: The capital raise and expanding holdings have fueled overnight and recent strength in ASST, as investors appear to be valuing Strive as a leveraged vehicle for Bitcoin exposure. ASST stock rises overnight
• Neutral Sentiment: Strive also disclosed that holders exercised 27 million warrants, providing additional capital and expanding the company’s Bitcoin-buying capacity, but increasing its overall securities count and financing complexity. Strive raises capital and expands Bitcoin holdings
• Negative Sentiment: The proposed preferred stock carries a substantial 15% dividend, creating a sizable recurring financing obligation. Investors also face dilution or dilution-related pressure from the broader capital program, while ASST remains highly volatile and unprofitable. Strive plans IPO of SATS preferred stock

Analysts Set New Price Targets

A number of research firms have commented on ASST. Benchmark restated a “buy” rating on shares of Strive in a research report on Thursday, August 20th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Strive in a research note on Monday. B. Riley Financial increased their price target on Strive from $26.00 to $33.00 and gave the stock a “buy” rating in a report on Tuesday, September 22nd. TD Cowen reiterated a “buy” rating on shares of Strive in a report on Monday, September 21st. Finally, Maxim Group set a $37.00 price objective on Strive and gave the stock a “buy” rating in a research report on Monday. Five research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $33.20.

Strive Stock Performance

The business’s 50 day moving average price is $24.15 and its 200-day moving average price is $17.50. The firm has a market capitalization of $2.19 billion, a PE ratio of -2.90 and a beta of 13.26.

Strive (NASDAQ:ASST) last issued its quarterly earnings data on Monday, August 10th. The company reported ($3.65) EPS for the quarter, missing the consensus estimate of ($0.95) by ($2.70). Strive had a negative return on equity of 141.47% and a negative net margin of 10,957.22%. The company had revenue of $2.94 million during the quarter, compared to analyst estimates of $3.02 million. As a group, analysts anticipate that Strive, Inc. will post 1.17 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Brian Beirne sold 20,077 shares of the firm’s stock in a transaction on Monday, October 5th. The stock was sold at an average price of $31.33, for a total transaction of $629,012.41. Following the completion of the transaction, the insider directly owned 41,425 shares in the company, valued at $1,297,845.25. This trade represents a 32.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jonathan R. Macey sold 6,700 shares of Strive stock in a transaction on Monday, October 5th. The shares were sold at an average price of $30.32, for a total value of $203,144.00. Following the completion of the sale, the director directly owned 8,115 shares of the company’s stock, valued at $246,046.80. The trade was a 45.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 101,409 shares of company stock valued at $3,166,897 over the last quarter. 2.71% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Strive

Hedge funds have recently bought and sold shares of the company. Allworth Financial LP purchased a new position in Strive during the 2nd quarter valued at about $66,000. AXQ Capital LP purchased a new stake in Strive during the second quarter worth about $110,000. Formidable Asset Management LLC purchased a new stake in Strive during the first quarter worth about $113,000. The Manufacturers Life Insurance Company acquired a new stake in shares of Strive during the second quarter worth about $179,000. Finally, Corient Private Wealth LP acquired a new stake in shares of Strive during the second quarter worth about $448,000. Institutional investors and hedge funds own 5.52% of the company’s stock.

Strive Company Profile

Strive, Inc is a financial services company operating under the Strive brand. Its business is focused on providing investment management and related financial products, with an emphasis on long-term capital preservation, shareholder rights and policies intended to promote value creation for investors.

The company’s activities include asset management and the development of investment vehicles designed to give clients exposure to selected investment strategies and markets. Strive has also pursued a Bitcoin-focused treasury strategy, making digital assets an important part of its corporate and investment positioning.

Strive’s current public-company structure resulted from the combination of Strive Enterprises and Asset Entities Inc, a social media and digital marketing company whose Nasdaq-listed shares traded under the symbol ASST.