Strategy (NASDAQ:MSTR) Shares Down 6.2% – Time to Sell?

Strategy Inc (NASDAQ:MSTR)’s stock price dropped 6.2% during mid-day trading on Tuesday . The stock traded as low as $154.67 and last traded at $154.4550. Approximately 11,573,215 shares changed hands during mid-day trading, a decline of 36% from the average daily volume of 17,979,977 shares. The stock had previously closed at $164.72.

Key Headlines Impacting Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: MSCI paused its plan to exclude crypto‑treasury companies from major indexes, removing a near‑term risk of forced selling and index outflows for Strategy. This reprieve is the main driver of the recent rally. Will MSCI Crypto Exclusion Plans Boost Strategy’s Near-Term View?
• Positive Sentiment: Multiple outlets reported immediate buying and after‑hours spikes following MSCI’s decision, indicating momentum and short‑term ETF/index flow relief for MSTR holders. Strategy (MSTR) Stock Jumps 6% as MSCI Keeps Crypto Treasury Firms in Indexes
• Positive Sentiment: News that Strategy’s STRC perpetual preferred returned to $100 has been flagged as a potential technical trigger to encourage further Bitcoin buying by investors and structured‑product users — a catalyst for the parent equity if it leads to more BTC inflows. Strategy’s STRC perpetual preferred stock returns to $100, may trigger more bitcoin buying
• Neutral Sentiment: Coverage notes “dip buying” into the MSCI reprieve — traders are treating the news as a buying opportunity, but analysts remain mixed on whether this removes longer‑term structural risks tied to the company’s bitcoin exposure. MSTR Sees Dip Buying Amid MSCI Reprieve
• Negative Sentiment: Fundamental concerns persist: coverage highlights a large Q4 unrealized bitcoin loss and commentators (including Jim Cramer) calling Strategy effectively a highly leveraged bet on Bitcoin — factors that can amplify downside when BTC falls. Strategy Records $17.44 Billion Unrealized Loss in Fourth Quarter Jim Cramer Says “Strategy Has Become Nothing More Than a Leveraged Bet on Bitcoin”

Analysts Set New Price Targets

MSTR has been the topic of several recent research reports. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Strategy in a research note on Friday, December 5th. Benchmark restated a “buy” rating on shares of Strategy in a report on Monday, December 1st. China Renaissance initiated coverage on shares of Strategy in a research report on Wednesday, October 15th. They issued a “buy” rating and a $473.00 target price on the stock. Sanford C. Bernstein set a $450.00 price target on shares of Strategy and gave the stock an “outperform” rating in a research note on Monday, December 8th. Finally, HC Wainwright dropped their price objective on shares of Strategy from $521.00 to $475.00 and set a “buy” rating on the stock in a research note on Monday, November 3rd. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $465.13.

Strategy Trading Up 3.2%

The stock has a market cap of $47.98 billion, a PE ratio of 7.77 and a beta of 3.42. The firm has a 50-day moving average price of $185.88 and a 200-day moving average price of $297.39. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.66 and a current ratio of 0.66.

Strategy (NASDAQ:MSTR) last announced its quarterly earnings data on Thursday, October 30th. The software maker reported $8.42 EPS for the quarter, beating the consensus estimate of ($0.10) by $8.52. The company had revenue of $128.69 million for the quarter, compared to the consensus estimate of $116.65 million. Strategy had a net margin of 1,667.09% and a return on equity of 20.98%. Strategy’s revenue for the quarter was up 10.9% on a year-over-year basis. During the same period in the prior year, the firm posted ($1.56) EPS. Strategy has set its FY 2025 guidance at 80.000-80.000 EPS.

Insider Activity at Strategy

In other Strategy news, Director Jarrod M. Patten bought 12,000 shares of Strategy stock in a transaction on Friday, October 17th. The stock was acquired at an average price of $96.88 per share, with a total value of $1,162,560.00. Following the acquisition, the director owned 29,335 shares in the company, valued at approximately $2,841,974.80. This trade represents a 69.22% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Wei-Ming Shao sold 2,600 shares of the business’s stock in a transaction on Wednesday, November 19th. The stock was sold at an average price of $202.02, for a total value of $525,252.00. Following the completion of the transaction, the executive vice president owned 32,726 shares of the company’s stock, valued at $6,611,306.52. This represents a 7.36% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders bought 24,880 shares of company stock valued at $2,421,219 and sold 13,177 shares valued at $2,843,166. 8.46% of the stock is owned by insiders.

Hedge Funds Weigh In On Strategy

Hedge funds have recently bought and sold shares of the business. SJS Investment Consulting Inc. boosted its holdings in shares of Strategy by 25.8% during the 2nd quarter. SJS Investment Consulting Inc. now owns 117 shares of the software maker’s stock valued at $47,000 after acquiring an additional 24 shares during the last quarter. Mutual Advisors LLC lifted its position in Strategy by 2.0% during the second quarter. Mutual Advisors LLC now owns 1,350 shares of the software maker’s stock valued at $548,000 after purchasing an additional 27 shares during the period. Bernardo Wealth Planning LLC boosted its holdings in Strategy by 3.9% in the second quarter. Bernardo Wealth Planning LLC now owns 772 shares of the software maker’s stock worth $312,000 after purchasing an additional 29 shares during the last quarter. Smith Anglin Financial LLC boosted its holdings in Strategy by 1.2% in the second quarter. Smith Anglin Financial LLC now owns 2,537 shares of the software maker’s stock worth $1,025,000 after purchasing an additional 30 shares during the last quarter. Finally, GPS Wealth Strategies Group LLC grew its position in Strategy by 2.7% in the 2nd quarter. GPS Wealth Strategies Group LLC now owns 1,163 shares of the software maker’s stock worth $470,000 after purchasing an additional 31 shares during the period. Hedge funds and other institutional investors 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.