Zacks Research Downgrades Strategy (NASDAQ:MSTR) to Strong Sell

Strategy (NASDAQ:MSTR) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other equities analysts have also issued reports on MSTR. Cantor Fitzgerald reiterated an “overweight” rating on shares of Strategy in a research report on Monday, May 11th. Benchmark decreased their target price on shares of Strategy from $705.00 to $570.00 and set a “buy” rating for the company in a research report on Wednesday, May 6th. TD Cowen increased their target price on shares of Strategy from $395.00 to $400.00 and gave the company a “buy” rating in a research report on Tuesday. Mizuho set a $320.00 target price on shares of Strategy and gave the company an “outperform” rating in a research report on Tuesday, February 17th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Strategy in a research report on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Strategy presently has a consensus rating of “Moderate Buy” and an average target price of $322.21.

Strategy Stock Down 1.2%

Strategy stock opened at $164.63 on Monday. The company has a 50-day simple moving average of $151.27 and a 200-day simple moving average of $162.03. The firm has a market capitalization of $57.69 billion, a P/E ratio of -4.10 and a beta of 3.59. The company has a debt-to-equity ratio of 0.22, a quick ratio of 6.05 and a current ratio of 6.05. Strategy has a one year low of $104.17 and a one year high of $457.22.

Strategy (NASDAQ:MSTR) last released its quarterly 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). The firm had revenue of $124.30 million for the quarter, compared to the consensus estimate of $120.75 million. Strategy had a negative return on equity of 26.97% and a negative net margin of 2,482.01%.The firm’s revenue was up 11.9% on a year-over-year basis. During the same quarter in the prior year, the company posted ($16.49) EPS. As a group, equities analysts expect that Strategy will post 116.7 earnings per share for the current year.

Insider Activity

In other news, CEO Phong Le sold 3,299 shares of the firm’s stock in a transaction dated Tuesday, March 24th. The shares were sold at an average price of $138.33, for a total transaction of $456,350.67. Following the completion of the transaction, the chief executive officer owned 22,923 shares in the company, valued at approximately $3,170,938.59. This trade represents a 12.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Jarrod M. Patten sold 3,400 shares of the firm’s stock in a transaction dated Monday, April 13th. The shares were sold at an average price of $130.65, for a total transaction of $444,210.00. Following the transaction, the director owned 28,000 shares of the company’s stock, valued at approximately $3,658,200. This trade represents a 10.83% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 30,702 shares of company stock worth $4,707,839. Corporate insiders own 6.49% of the company’s stock.

Institutional Trading of Strategy

Hedge funds have recently bought and sold shares of the company. Fideuram Asset Management Ireland dac purchased a new stake in Strategy during the fourth quarter valued at about $25,000. Westfuller Advisors LLC purchased a new stake in Strategy during the first quarter valued at about $25,000. Dogwood Wealth Management LLC lifted its stake in Strategy by 280.0% during the fourth quarter. Dogwood Wealth Management LLC now owns 190 shares of the software maker’s stock valued at $29,000 after buying an additional 140 shares in the last quarter. Wilkerson Advisory Group LLC purchased a new stake in Strategy during the fourth quarter valued at about $30,000. Finally, Pilgrim Partners Asia Pte Ltd purchased a new stake in Strategy during the third quarter valued at about $32,000. 59.84% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Strategy

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.