Strategy (NASDAQ:MSTR) Trading Up 14.3% – Should You Buy?

Strategy Inc (NASDAQ:MSTR) shares traded up 14.3% on Friday . The stock traded as high as $123.25 and last traded at $122.2720. 7,995,407 shares were traded 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.

Key Headlines Impacting Strategy

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

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on MSTR shares. TD Cowen reissued a “buy” rating on shares of Strategy in a report on Thursday, January 15th. Sanford C. Bernstein set a $450.00 price target on shares of Strategy and gave the company an “outperform” rating in a research note on Monday, December 8th. Truist Financial set a $268.00 price objective on shares of Strategy in a research note on Friday, January 9th. Cantor Fitzgerald started coverage on Strategy in a report on Tuesday, January 27th. They set an “overweight” rating for the company. Finally, BTIG Research set a $250.00 price target on Strategy and gave the company a “buy” rating in a research note on Friday. Twelve equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, Strategy presently has an average rating of “Moderate Buy” and a consensus price target of $386.53.

Strategy Stock Up 23.9%

The company has a current ratio of 0.66, a quick ratio of 0.66 and a debt-to-equity ratio of 0.16. The firm has a market cap of $38.08 billion, a PE ratio of 6.17 and a beta of 3.54. The stock has a fifty day simple moving average of $163.15 and a two-hundred day simple moving average of $262.24.

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

Insider Transactions at Strategy

In other news, Director Carl J. Rickertsen acquired 5,000 shares of the business’s stock in a transaction on Monday, January 12th. The stock was bought at an average price of $155.88 per share, with a total value of $779,400.00. Following the completion of the acquisition, the director owned 5,000 shares of the company’s stock, valued at approximately $779,400. This 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 bought 1,000 shares of the stock in a transaction dated Tuesday, January 20th. The shares were purchased at an average cost of $99.48 per share, for a total transaction of $99,480.00. Following the completion of the purchase, the director owned 3,600 shares in the company, valued at approximately $358,128. This represents a 38.46% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have purchased 7,112 shares of company stock worth $984,888 and have sold 13,177 shares worth $2,843,166. Company insiders own 8.46% of the company’s stock.

Institutional Investors Weigh In On Strategy

Large investors have recently made changes to their positions in the stock. Dogwood Wealth Management LLC raised its holdings in shares of Strategy by 280.0% during the 4th quarter. Dogwood Wealth Management LLC now owns 190 shares of the software maker’s stock worth $29,000 after acquiring an additional 140 shares during the period. Pilgrim Partners Asia Pte Ltd purchased a new stake in Strategy during the 3rd quarter worth about $32,000. Quent Capital LLC acquired a new position in shares of Strategy during the third quarter worth about $33,000. Binnacle Investments Inc lifted its stake in 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 acquiring an additional 69 shares during the last quarter. Finally, SOA Wealth Advisors LLC. increased its stake in Strategy by 44.4% in the third quarter. SOA Wealth Advisors LLC. now owns 117 shares of the software maker’s stock valued at $38,000 after purchasing an additional 36 shares during the last quarter. 59.84% of the stock is currently owned by hedge funds and other institutional investors.

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.