Strategy (NASDAQ:MSTR) Rating Lowered to Sell at Wall Street Zen

Strategy (NASDAQ:MSTR - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Sunday.

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Several other research analysts also recently commented on the stock. Mizuho dropped their target price on shares of Strategy from $484.00 to $403.00 and set an "outperform" rating on the stock in a report on Friday, January 16th. Canaccord Genuity Group set a $185.00 price objective on Strategy and gave the stock a "buy" rating in a research note on Wednesday. China Renaissance began coverage on Strategy in a research report on Wednesday, October 15th. They set a "buy" rating and a $473.00 price objective for the company. Benchmark reaffirmed a "buy" rating on shares of Strategy in a report on Monday, December 1st. Finally, Sanford C. Bernstein set a $450.00 price target on Strategy and gave the stock an "outperform" rating in a report on Monday, December 8th. Eleven equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, Strategy has a consensus rating of "Moderate Buy" and an average price target of $374.14.

Check Out Our Latest Report on Strategy

Strategy Stock Up 26.1%

• Strategy Earnings Reveal the Real Risk Behind MSTR Stock

Shares of MSTR stock opened at $134.93 on Friday. The stock's 50 day simple moving average is $162.28 and its 200 day simple moving average is $259.06. Strategy has a twelve month low of $104.17 and a twelve month high of $457.22. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.66 and a current ratio of 0.66. The company has a market capitalization of $38.77 billion, a price-to-earnings ratio of -7.33 and a beta of 3.54.

Strategy (NASDAQ:MSTR - Get Free Report) last announced its quarterly earnings results on Thursday, February 5th. The software maker reported ($42.93) EPS for the quarter, missing the consensus estimate of $46.02 by ($88.95). Strategy had a negative net margin of 806.34% and a negative return on equity of 8.74%. The company had revenue of $122.99 million for the quarter, compared to analyst estimates of $117.42 million. During the same quarter last year, the business earned ($3.03) EPS. The company's revenue for the quarter was up 1.9% on a year-over-year basis.

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In other news, EVP Wei-Ming Shao sold 2,600 shares of Strategy stock in a transaction that occurred on Wednesday, November 19th. The stock was sold at an average price of $202.02, for a total transaction of $525,252.00. Following the sale, the executive vice president owned 32,726 shares of the company's stock, valued at approximately $6,611,306.52. This trade represents a 7.36% 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 Carl J. Rickertsen acquired 5,000 shares of the stock in a transaction dated Monday, January 12th. The shares were purchased at an average price of $155.88 per share, for a total transaction of $779,400.00. Following the completion of the transaction, the director owned 5,000 shares of the company's stock, valued at $779,400. This trade represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders bought 7,112 shares of company stock worth $984,888 and sold 13,177 shares worth $2,843,166. Corporate insiders own 8.46% of the company's stock.

Hedge Funds Weigh In On Strategy

A number of hedge funds and other institutional investors have recently made changes to their positions in MSTR. Dogwood Wealth Management LLC raised its position in Strategy by 280.0% in the fourth quarter. Dogwood Wealth Management LLC now owns 190 shares of the software maker's stock worth $29,000 after purchasing an additional 140 shares in the last quarter. Pilgrim Partners Asia Pte Ltd acquired a new stake in Strategy during the third quarter valued at approximately $32,000. Quent Capital LLC bought a new stake in shares of Strategy in the 3rd quarter valued at approximately $33,000. Binnacle Investments Inc raised its holdings in shares of Strategy by 492.9% in the 2nd quarter. Binnacle Investments Inc now owns 83 shares of the software maker's stock worth $34,000 after buying an additional 69 shares in the last quarter. Finally, SOA Wealth Advisors LLC. raised its holdings in shares of Strategy by 44.4% in the 3rd quarter. SOA Wealth Advisors LLC. now owns 117 shares of the software maker's stock worth $38,000 after buying an additional 36 shares in the last quarter. 59.84% of the stock is owned by institutional investors.

Strategy News Summary

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Bitcoin recovery and renewed analyst support lifted buying interest — TD Cowen kept a Buy rating and its $440 target, and headlines tied MSTR’s move to a BTC bounce. 'No Reasonable Scenario' Forces Strategy To Sell Bitcoin As $440 Target Stands: TD Cowen
• Positive Sentiment: Underlying software/subscriptions revenue beat consensus — Q4 revenue rose ~1.9% and subscription/license growth was noted, a constructive datapoint for the non‑Bitcoin business. Strategy Q4 Earnings Miss Estimates, Revenues Increase Y/Y (Zacks)
• Positive Sentiment: Balance‑sheet size and liquidity signals — company now reports ~713,502 BTC and has raised large amounts of capital, which some investors view as financial firepower to ride out volatility. Strategy Inc Reports 713,502 BTC Holdings Amid $12.4 Billion Quarterly Loss (Blockonomi)
• Neutral Sentiment: Analyst views remain split — some firms cut price targets (Canaccord trimmed its target earlier) but several bullish analysts still defend the long‑term thesis, leaving consensus divergent. Strategy Stock: Analyst Slashes Target 60% Yet Keeps Buy Rating
• Neutral Sentiment: Company is tweaking shareholder frameworks (dividend rules, capital plans) announced alongside results — these are structural but their market effect depends on execution. Strategy Updates Dividend Framework and Highlights Bitcoin Expansion
• Negative Sentiment: Huge Q4 unrealized Bitcoin losses produced a blockbuster accounting hit (reported ~ $12–17B in Q4), driving a wide EPS miss and renewed fear of downside when BTC falls. That remains the primary negative for the equity. Saylor‑led Strategy's quarterly losses widen as bitcoin faces another reckoning (Reuters)
• Negative Sentiment: Leverage/liquidity risk from debt‑funded BTC purchases and vocal short sellers/critics raise the chance of forced sells or margin stress if Bitcoin moves sharply lower again. Market commentary highlights this as an ongoing tail risk. Strategy Earnings Reveal the Real Risk Behind MSTR Stock (MarketBeat)

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.

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