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

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

Several other research analysts have also commented on MSTR. Barclays reaffirmed an “overweight” rating and set a $125.00 price objective (down from $130.00) on shares of Strategy in a research note on Monday. Canaccord Genuity Group dropped their price target on shares of Strategy from $163.00 to $130.00 and set a “buy” rating for the company in a research note on Tuesday, June 30th. Benchmark reiterated a “buy” rating and set a $435.00 price target (down from $570.00) on shares of Strategy in a report on Monday, July 27th. Credit Suisse Group set a $250.00 price target on shares of Strategy in a report on Tuesday, June 30th. Finally, Cantor Fitzgerald reduced their price objective on shares of Strategy from $212.00 to $186.00 and set an “overweight” rating on the stock in a research report on Monday. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Strategy currently has a consensus rating of “Moderate Buy” and a consensus target price of $242.81.

Strategy Trading Up 0.7%

Shares of Strategy stock opened at $98.37 on Tuesday. Strategy has a twelve month low of $81.81 and a twelve month high of $414.36. The company has a quick ratio of 6.05, a current ratio of 5.39 and a debt-to-equity ratio of 0.22. The business has a 50-day moving average price of $106.67 and a 200-day moving average price of $133.20. The firm has a market cap of $34.47 billion, a price-to-earnings ratio of -1.01 and a beta of 3.54.

Strategy (NASDAQ:MSTR) last issued its quarterly earnings data on Friday, July 31st. The software maker reported ($24.45) EPS for the quarter, missing analysts’ consensus estimates of ($2.19) by ($22.26). The business had revenue of $122.37 million during the quarter, compared to analysts’ expectations of $122.90 million. Strategy had a negative return on equity of 74.18% and a negative net margin of 6,102.95%.The business’s quarterly revenue was up 6.9% on a year-over-year basis. During the same period in the previous year, the business earned $32.52 earnings per share. Equities research analysts anticipate that Strategy will post 57.47 EPS for the current fiscal year.

Insiders Place Their Bets

In other Strategy news, CEO Phong Le bought 11,000 shares of the firm’s stock in a transaction dated Monday, June 22nd. The stock was acquired at an average cost of $90.80 per share, for a total transaction of $998,800.00. Following the completion of the transaction, the chief executive officer owned 11,000 shares in the company, valued at $998,800. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Andrew Kang sold 1,949 shares of the firm’s stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $123.84, for a total transaction of $241,364.16. Following the completion of the transaction, the chief financial officer directly owned 71,044 shares in the company, valued at $8,798,088.96. This represents a 2.67% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have acquired 11,166 shares of company stock worth $1,014,265 and have sold 181,422 shares worth $23,144,128. Company insiders own 6.49% of the company’s stock.

Hedge Funds Weigh In On Strategy

A number of institutional investors have recently modified their holdings of MSTR. Fideuram Asset Management Ireland dac bought a new position in Strategy in the fourth quarter worth approximately $25,000. Westfuller Advisors LLC purchased a new position in Strategy during the 1st quarter worth $25,000. Dogwood Wealth Management LLC raised its position in Strategy by 280.0% during the 4th quarter. Dogwood Wealth Management LLC now owns 190 shares of the software maker’s stock valued at $29,000 after purchasing an additional 140 shares in the last quarter. Wilkerson Advisory Group LLC bought a new stake in Strategy during the 4th quarter valued at $30,000. Finally, Binnacle Investments Inc raised its position in Strategy by 492.9% during the 2nd quarter. Binnacle Investments Inc now owns 83 shares of the software maker’s stock valued at $34,000 after purchasing an additional 69 shares in the last quarter. 59.84% of the stock is owned by hedge funds and other institutional investors.

More Strategy News

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Executive Chairman Michael Saylor reiterated Strategy’s ambition to become the world’s largest company by market capitalization by expanding its Bitcoin holdings and using equity, debt and digital-credit markets to grow its balance sheet. CEO Phong Le also said Strategy expects to outperform Bitcoin during the next bull market, supporting the long-term investment thesis. Michael Saylor Says Strategy Aims to Be the World’s Biggest Company by Market Cap
• Neutral Sentiment: Strategy-linked wallets transferred approximately 1,030 BTC, worth about $66 million. No additional sale was confirmed, but the movement is attracting investor attention after the company recently sold 1,638 BTC for roughly $105 million. Strategy Transfers $66 Million in Bitcoin as Market Stays Uncertain
• Negative Sentiment: Maxim Group cut its Strategy price target to $215 from $250 while maintaining a Buy rating. Cantor Fitzgerald lowered its target to $186, and B. Riley reduced its target to $155. The revisions reflect lower Bitcoin forecasts and increased caution toward Strategy’s valuation and capital-allocation model. Strategy Stock Price Target Cut to $215 by Maxim Group
• Negative Sentiment: Strategy has gone six consecutive weeks without buying Bitcoin, its longest purchasing pause since at least 2024. The company also plans to sell additional Bitcoin, potentially raising billions of dollars to fund share repurchases and preferred-stock dividends. While buybacks may support equity holders, selling the core asset undermines the accumulation narrative and can pressure investor confidence. Strategy Has Gone Six Consecutive Weeks Without Buying Bitcoin
• Negative Sentiment: Bitcoin is hovering near $64,000 amid broader crypto-market uncertainty, technical support concerns and debate over the proposed BIP-110 upgrade. Because Strategy holds more than 842,000 BTC, continued Bitcoin weakness directly weighs on the value of its holdings and MSTR’s equity premium. Strategy’s Michael Saylor Is Making a Strong Case Against a Proposed New Bitcoin Upgrade

Strategy Company Profile

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.