Strategy (NASDAQ:MSTR) Downgraded to “Strong Sell” Rating by Zacks Research

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

Several other equities research analysts have also recently commented on MSTR. BTIG Research reaffirmed a “buy” rating and issued a $350.00 price target (up from $250.00) on shares of Strategy in a report on Wednesday, May 6th. Mizuho set a $320.00 price target on Strategy and gave the company an “outperform” rating in a report on Tuesday, February 17th. Wall Street Zen cut Strategy from a “hold” rating to a “sell” rating in a research note on Sunday, February 8th. B. Riley Financial raised their target price on Strategy from $200.00 to $215.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Strategy in a research note on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $322.21.

Strategy Stock Performance

NASDAQ MSTR opened at $164.63 on Monday. The company has a market cap of $57.69 billion, a PE ratio of -4.10 and a beta of 3.59. The stock’s 50 day simple moving average is $151.27 and its 200-day simple moving average is $162.03. Strategy has a 1-year low of $104.17 and a 1-year high of $457.22. 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) 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 analysts’ expectations of $120.75 million. Strategy had a negative net margin of 2,482.01% and a negative return on equity of 26.97%. The business’s revenue was up 11.9% compared to the same quarter last year. During the same quarter last year, the business earned ($16.49) EPS. As a group, equities research analysts anticipate that Strategy will post 116.7 EPS for the current fiscal year.

Insider Transactions at Strategy

In other Strategy news, Director Jarrod M. Patten sold 1,500 shares of the firm’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $190.85, for a total transaction of $286,275.00. Following the completion of the sale, the director owned 28,000 shares of the company’s stock, valued at $5,343,800. This trade represents a 5.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders sold a total of 30,702 shares of company stock worth $4,707,839 over the last ninety days. 6.49% of the stock is owned by company insiders.

Institutional Investors Weigh In On Strategy

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

Key Strategy News

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy keeps expanding its Bitcoin treasury, buying 24,869 BTC for about $2.01 billion and bringing total holdings to 843,738 BTC, reinforcing its role as the biggest public Bitcoin holder. Article Title
• Positive Sentiment: TD Cowen raised its price target on MSTR to $400 and kept a Buy rating, signaling continued Wall Street confidence in the Bitcoin accumulation strategy. Article Title
• Positive Sentiment: Management’s comments that Strategy could eventually use Bitcoin sales to support dividends or debt obligations are also being viewed by some as a way to broaden the investor base and add a potential income catalyst. Article Title
• Neutral Sentiment: Insider selling added to the news flow, with director Jarrod Patten selling 1,500 shares; while not huge, it can still make some investors cautious. Article Title
• Negative Sentiment: Bitcoin’s sharp pullback, ETF outflows, and heavy liquidations are pressuring MSTR because the stock tends to move with crypto prices and investor risk appetite. Article Title
• Negative Sentiment: Some market coverage framed the latest Bitcoin buying spree as increasing balance-sheet risk, especially since Strategy is now willing to consider asset sales to meet obligations. Article Title

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.