Strategy (NASDAQ:MSTR) Upgraded by Zacks Research to Hold Rating

Zacks Research upgraded shares of Strategy (NASDAQ:MSTR) from a strong sell rating to a hold rating in a research note published on Monday morning,Zacks.com reports.

A number of other research analysts have also recently commented on the company. 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. Mizuho reduced their price target on Strategy from $265.00 to $213.00 and set an “outperform” rating on the stock in a research note on Tuesday. TD Cowen decreased their price objective on Strategy from $400.00 to $260.00 and set a “buy” rating for the company in a report on Tuesday, June 30th. Monness Crespi & Hardt reissued a “neutral” rating on shares of Strategy in a research report on Tuesday, June 2nd. Finally, Credit Suisse Group set a $250.00 target price on shares of Strategy in a report on Tuesday, June 30th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $275.40.

Strategy Trading Down 3.4%

NASDAQ:MSTR opened at $97.36 on Monday. The company has a 50-day moving average price of $138.77 and a 200-day moving average price of $142.88. The stock has a market cap of $34.12 billion, a price-to-earnings ratio of -2.42 and a beta of 3.54. The company has a current ratio of 6.05, a quick ratio of 6.05 and a debt-to-equity ratio of 0.22. Strategy has a 12 month low of $81.81 and a 12 month high of $457.22.

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

Insider Activity at Strategy

In other news, CFO Andrew Kang sold 33,062 shares of the business’s stock in a transaction on Friday, June 5th. The stock was sold at an average price of $118.73, for a total value of $3,925,451.26. Following the completion of the transaction, the chief financial officer owned 68,733 shares in the company, valued at $8,160,669.09. The trade was a 32.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Phong Le sold 93,738 shares of the company’s stock in a transaction on Friday, June 5th. The shares were sold at an average price of $118.73, for a total value of $11,129,512.74. Following the transaction, the chief executive officer directly owned 119,925 shares in the company, valued at approximately $14,238,695.25. The trade was a 43.87% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have acquired 11,166 shares of company stock valued at $1,014,265 and have sold 190,822 shares valued at $24,833,559. 6.49% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Strategy

Hedge funds have recently bought and sold shares of the business. Schroder Investment Management Group raised its stake in Strategy by 21.0% during the 3rd quarter. Schroder Investment Management Group now owns 118,478 shares of the software maker’s stock valued at $38,175,000 after buying an additional 20,536 shares during the last quarter. Van ECK Associates Corp boosted its stake in shares of Strategy by 46.1% in the 3rd quarter. Van ECK Associates Corp now owns 204,506 shares of the software maker’s stock worth $65,894,000 after buying an additional 64,482 shares during the last quarter. Daviman Financial LLC bought a new stake in shares of Strategy in the fourth quarter worth $1,013,000. Legal & General Group Plc grew its holdings in shares of Strategy by 7.5% in the third quarter. Legal & General Group Plc now owns 1,255,770 shares of the software maker’s stock worth $404,622,000 after acquiring an additional 87,333 shares during the period. Finally, Eurizon Capital SGR S.p.A. purchased a new stake in Strategy during the fourth quarter valued at $4,237,000. Hedge funds and other institutional investors own 59.84% of the company’s stock.

Key Strategy News

Here are the key news stories impacting Strategy this week:

• Neutral Sentiment: Strategy said the Bitcoin sale was part of its new monetization framework and that it still held 843,775 BTC plus $2.55 billion in dollar reserves, suggesting it has liquidity to support preferred payouts. Strategy Sells 3,588 Bitcoin for $216 Million to Fund Preferred Dividends
• Neutral Sentiment: Grayscale and Bernstein offered a more constructive read, arguing the sale may reduce financing risk and help stabilize the balance sheet, while Bernstein kept a $150,000 year-end Bitcoin target. Strategy sells 3,588 Bitcoin for $216M to fund dividends, keeps $2.55B reserve intact
• Negative Sentiment: Mizuho cut its price target on Strategy to $213 from $265, reflecting a more cautious view as the company’s Bitcoin monetization plan and sale of BTC below its cost basis raise valuation concerns. Strategy had its price target lowered by Mizuho from $265.00 to $213.00
• Negative Sentiment: Other coverage flagged that the sale may signal Strategy is moving away from being a pure Bitcoin accumulator, which could unsettle bulls who bought the stock as a leveraged Bitcoin proxy. Strategy is losing a lot of money on bitcoin. Here’s why it’s selling anyway.

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.