Strategy (NASDAQ:MSTR) Stock Price Down 8.4% Following Insider Selling

Strategy Inc (NASDAQ:MSTR) shares dropped 8.4% during trading on Wednesday after an insider sold shares in the company. The company traded as low as $95.90 and last traded at $95.1640. 16,346,238 shares were traded during trading, a decline of 21% from the average daily volume of 20,728,488 shares. The stock had previously closed at $103.84.

Specifically, Director Jarrod M. Patten sold 1,500 shares of the stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $106.08, for a total transaction of $159,120.00. Following the sale, the director directly owned 28,406 shares in the company, valued at approximately $3,013,308.48. This represents a 5.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Jarrod M. Patten sold 1,500 shares of the business’s stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $121.31, for a total value of $181,965.00. Following the transaction, the director owned 28,406 shares of the company’s stock, valued at $3,445,931.86. This represents a 5.02% decrease in their position. The SEC filing for this sale provides additional information.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on MSTR. Zacks Research downgraded Strategy from a “hold” rating to a “strong sell” rating in a research note on Monday, May 18th. 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, June 1st. B. Riley Financial boosted their price target on shares of Strategy from $200.00 to $215.00 and gave the company a “buy” rating in a report on Thursday, May 7th. TD Cowen upped their price target on shares of Strategy from $395.00 to $400.00 and gave the stock a “buy” rating in a research report on Tuesday, May 19th. Finally, Canaccord Genuity Group set a $163.00 price objective on shares of Strategy and gave the stock a “buy” rating in a report on Wednesday, June 3rd. One 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. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $313.93.

Strategy News Roundup

Here are the key news stories impacting Strategy this week:

• Negative Sentiment: Bitcoin’s slide below $60,000 has triggered a broad selloff in crypto-linked names, and Strategy is trading lower because investors see it as a leveraged play on BTC. Article Title
• Negative Sentiment: Several reports say Strategy’s financing model is coming under stress, with critics urging the company to pause Bitcoin purchases, rebuild cash reserves, and address dividend obligations tied to its preferred stock. Article Title
• Negative Sentiment: Investor concern is rising around STRC preferred shares trading below par, which is fueling worries about dilution, dividend coverage, and whether Strategy may need to sell Bitcoin or slow accumulation. Article Title
• Negative Sentiment: Rosen Law Firm’s securities investigation has added another overhang, increasing legal and reputational risk for shareholders. Article Title
• Neutral Sentiment: One insider sale by director Jarrod Patten may add to the cautious tone, but it appears to be a smaller secondary factor versus the Bitcoin-driven selloff. Article Title

Strategy Stock Up 1.7%

The firm’s fifty day moving average is $150.00 and its two-hundred day moving average is $147.47. The firm has a market cap of $30.42 billion, a price-to-earnings ratio of -2.11 and a beta of 3.49. The company has a debt-to-equity ratio of 0.22, a current ratio of 6.05 and a quick ratio of 6.05.

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

Hedge Funds Weigh In On Strategy

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Schroder Investment Management Group boosted its holdings in shares of Strategy by 21.0% during the 3rd quarter. Schroder Investment Management Group now owns 118,478 shares of the software maker’s stock worth $38,175,000 after buying an additional 20,536 shares during the period. Van ECK Associates Corp lifted its position in Strategy by 46.1% during the third quarter. Van ECK Associates Corp now owns 204,506 shares of the software maker’s stock worth $65,894,000 after acquiring an additional 64,482 shares during the last quarter. Daviman Financial LLC bought a new stake in shares of Strategy during the fourth quarter worth approximately $1,013,000. Harvest Portfolios Group Inc. grew its position in shares of Strategy by 119.0% in the third quarter. Harvest Portfolios Group Inc. now owns 1,550,520 shares of the software maker’s stock valued at $499,593,000 after purchasing an additional 842,480 shares during the last quarter. Finally, Legal & General Group Plc increased its stake in shares of Strategy by 7.5% during the third quarter. Legal & General Group Plc now owns 1,255,770 shares of the software maker’s stock worth $404,622,000 after purchasing an additional 87,333 shares during the period. Institutional investors and hedge funds own 59.84% of the company’s stock.

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.