Investors Purchase Large Volume of Strategy Call Options (NASDAQ:MSTR)

Strategy Inc (NASDAQ:MSTR) was the recipient of unusually large options trading activity on Friday. Stock investors acquired 736,850 call options on the company. This represents an increase of approximately 35% compared to the average daily volume of 546,927 call options.

Insiders Place Their Bets

In other news, EVP Wei-Ming Shao sold 30,000 shares of the stock in a transaction that occurred on Tuesday, October 7th. The stock was sold at an average price of $357.37, for a total transaction of $10,721,100.00. Following the completion of the transaction, the executive vice president directly owned 12,726 shares of the company’s stock, valued at approximately $4,547,890.62. This represents a 70.21% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Jarrod M. Patten acquired 12,000 shares of the business’s stock in a transaction on Friday, October 17th. The stock was acquired at an average price of $96.88 per share, with a total value of $1,162,560.00. Following the transaction, the director directly owned 29,335 shares of the company’s stock, valued at $2,841,974.80. This represents a 69.22% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders have acquired 37,380 shares of company stock valued at $3,632,719 and have sold 53,177 shares valued at $17,122,166. 8.46% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Strategy

Institutional investors have recently added to or reduced their stakes in the business. Pilgrim Partners Asia Pte Ltd acquired a new position in shares of Strategy during the 3rd quarter valued at $32,000. Quent Capital LLC acquired a new position in shares of Strategy during the third quarter worth about $33,000. Binnacle Investments Inc boosted its position in shares of Strategy by 492.9% in the second quarter. Binnacle Investments Inc now owns 83 shares of the software maker’s stock worth $34,000 after buying an additional 69 shares during the period. MCF Advisors LLC purchased a new stake in shares of Strategy in the second quarter worth about $35,000. Finally, Maseco LLP acquired a new stake in shares of Strategy in the second quarter valued at about $36,000. 59.84% of the stock is currently owned by institutional investors and hedge funds.

Strategy Trading Down 3.8%

Shares of MSTR traded down $7.02 on Friday, hitting $178.99. 20,550,385 shares of the stock traded hands, compared to its average volume of 15,014,391. Strategy has a 1 year low of $155.61 and a 1 year high of $457.22. The stock’s 50 day moving average is $257.15 and its two-hundred day moving average is $334.83. The firm has a market capitalization of $51.43 billion, a P/E ratio of 8.33 and a beta of 3.40. The company has a quick ratio of 0.66, a current ratio of 0.66 and a debt-to-equity ratio of 0.16.

Strategy (NASDAQ:MSTR) last issued its quarterly earnings results on Thursday, October 30th. The software maker reported $8.42 earnings per share for the quarter, beating the consensus estimate of ($0.10) by $8.52. Strategy had a return on equity of 20.98% and a net margin of 1,667.09%.The company had revenue of $128.69 million during the quarter, compared to the consensus estimate of $116.65 million. During the same period in the previous year, the firm posted ($1.56) EPS. Strategy’s revenue was up 10.9% on a year-over-year basis. Strategy has set its FY 2025 guidance at 80.000-80.000 EPS.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on MSTR shares. Cantor Fitzgerald restated an “overweight” rating on shares of Strategy in a report on Friday. Benchmark reissued a “buy” rating on shares of Strategy in a report on Monday. Canaccord Genuity Group lifted their price target on Strategy from $464.00 to $474.00 and gave the stock a “buy” rating in a research note on Monday, November 3rd. HC Wainwright decreased their price objective on shares of Strategy from $521.00 to $475.00 and set a “buy” rating on the stock in a research report on Monday, November 3rd. Finally, Wells Fargo & Company restated an “equal weight” rating and set a $54.00 target price (down from $65.00) on shares of Strategy in a report on Tuesday, September 30th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, Strategy has an average rating of “Moderate Buy” and a consensus price target of $485.80.

About Strategy

Strategy Incorporated, formerly known as MicroStrategy, provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers Strategy ONE, a platform that allows non-technical users to access novel and actionable insights for decision-making, and Strategy Cloud for Government, which provides always-on threat monitoring designed to meet the strict technical and regulatory standards of governments and financial institutions.