Insider Selling: Strategy (NASDAQ:MSTR) Director Sells 7,250 Shares of Stock

Strategy Inc (NASDAQ:MSTR) Director Jarrod Patten sold 7,250 shares of the business’s stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $147.74, for a total value of $1,071,115.00. Following the completion of the sale, the director directly owned 28,000 shares of the company’s stock, valued at approximately $4,136,720. This represents a 20.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link.

Strategy Stock Down 5.9%

Strategy stock traded down $9.31 during midday trading on Monday, hitting $149.78. The stock had a trading volume of 17,680,271 shares, compared to its average volume of 20,387,682. The company has a current ratio of 6.05, a quick ratio of 6.05 and a debt-to-equity ratio of 0.22. The stock has a market cap of $52.49 billion, a P/E ratio of -3.73 and a beta of 3.59. Strategy Inc has a 12 month low of $104.17 and a 12 month high of $457.22. The business has a fifty day moving average price of $154.16 and a 200 day moving average price of $156.86.

Strategy (NASDAQ:MSTR) last announced its quarterly earnings data on Tuesday, May 5th. The software maker reported ($38.25) earnings per share for the quarter, missing the consensus estimate of ($0.86) by ($37.39). The firm had revenue of $124.30 million during the quarter, compared to the consensus estimate of $120.75 million. Strategy had a negative net margin of 2,482.01% and a negative return on equity of 26.97%. The firm’s quarterly revenue was up 11.9% compared to the same quarter last year. During the same period in the prior year, the firm earned ($16.49) earnings per share. Research analysts predict that Strategy Inc will post 116.7 EPS for the current year.

Hedge Funds Weigh In On Strategy

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MSTR. Federated Hermes Inc. bought a new position in Strategy in the 2nd quarter worth approximately $396,000. Cary Street Partners Financial LLC bought a new position in Strategy in the 2nd quarter worth approximately $202,000. Sei Investments Co. grew its holdings in Strategy by 136.0% in the 2nd quarter. Sei Investments Co. now owns 39,905 shares of the software maker’s stock worth $16,125,000 after buying an additional 22,999 shares in the last quarter. The Manufacturers Life Insurance Company grew its holdings in Strategy by 59.4% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 19,215 shares of the software maker’s stock worth $7,767,000 after buying an additional 7,158 shares in the last quarter. Finally, Peapack Gladstone Financial Corp grew its holdings in Strategy by 22.0% in the 2nd quarter. Peapack Gladstone Financial Corp now owns 3,055 shares of the software maker’s stock worth $1,235,000 after buying an additional 550 shares in the last quarter. 59.84% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. Zacks Research downgraded Strategy from a “hold” rating to a “strong sell” rating in a research note on Monday, May 18th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Strategy in a research note on Monday, May 11th. Benchmark cut their target price on Strategy from $705.00 to $570.00 and set a “buy” rating on the stock in a research note on Wednesday, May 6th. Mizuho cut their target price on Strategy from $320.00 to $265.00 and set an “outperform” rating on the stock in a research note on Monday. Finally, B. Riley Financial raised their target price on Strategy from $200.00 to $215.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. 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 assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $318.29.

Key Strategy News

Here are the key news stories impacting Strategy this week:

• Negative Sentiment: Strategy sold 32 BTC for about $2.5 million between May 26 and May 31 to help fund preferred stock dividend payments, which raised concerns that the company may need to use Bitcoin more actively to support its capital structure. CNBC article
• Negative Sentiment: The sale challenged Michael Saylor’s long-held “never sell Bitcoin” narrative, which appears to have shaken confidence in Strategy’s treasury strategy and pressured the stock. MarketWatch article
• Negative Sentiment: Investors also reacted to ongoing at-the-market equity issuance, which adds dilution concerns on top of the Bitcoin sale and reinforces worries about financing preferred dividends and other obligations. Quiver Quantitative article
• Neutral Sentiment: Despite the selloff, the company still holds 843,706 BTC, so MSTR remains highly leveraged to Bitcoin’s price direction and broader crypto sentiment. Cointelegraph article

About Strategy

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.