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

by · The Markets Daily

Zacks Research cut shares of Strategy (NASDAQ:MSTR – Free Report) from a hold rating to a strong sell rating in a research report report published on Tuesday morning,Zacks.com reports.

MSTR has been the topic of a number of other reports. Mizuho dropped their target price on shares of Strategy from $265.00 to $213.00 and set an “outperform” rating on the stock in a research note on Tuesday, July 7th. TD Cowen dropped their price objective on Strategy from $400.00 to $260.00 and set a “buy” rating on the stock in a research note on Tuesday, June 30th. Monness Crespi & Hardt reissued a “neutral” rating on shares of Strategy in a research report on Tuesday, June 2nd. B. Riley Financial dropped their price target on Strategy from $215.00 to $155.00 and set a “buy” rating on the stock in a research report on Monday. Finally, Credit Suisse Group set a $250.00 price objective on Strategy in a report on Tuesday, June 30th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $242.81.

Check Out Our Latest Stock Analysis on MSTR

Strategy Stock Performance

MSTR stock opened at $98.37 on Tuesday. 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 firm has a market cap of $34.47 billion, a PE ratio of -1.01 and a beta of 3.54. The business has a 50 day moving average of $106.67 and a 200-day moving average of $133.20. Strategy has a 12-month low of $81.81 and a 12-month high of $414.36.

Strategy (NASDAQ:MSTR – Get Free Report) last posted its quarterly earnings data on Friday, July 31st. The software maker reported ($24.45) earnings per share for the quarter, missing the consensus estimate of ($2.19) by ($22.26). Strategy had a negative return on equity of 74.18% and a negative net margin of 6,102.95%.The business had revenue of $122.37 million during the quarter, compared to analysts’ expectations of $122.90 million. During the same period in the prior year, the firm posted $32.52 EPS. The firm’s revenue for the quarter was up 6.9% on a year-over-year basis. As a group, sell-side analysts expect that Strategy will post 57.47 earnings per share for the current year.

Insider Buying and Selling

In other Strategy news, CFO Andrew Kang sold 1,949 shares of Strategy 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 owned 71,044 shares of the company’s stock, valued at $8,798,088.96. The trade was a 2.67% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Jeanine Montgomery sold 354 shares of the company’s stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $123.84, for a total value of $43,839.36. Following the sale, the chief accounting officer owned 11,209 shares in the company, valued at approximately $1,388,122.56. This represents a 3.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders acquired 11,166 shares of company stock worth $1,014,265 and sold 181,422 shares worth $23,144,128. Corporate insiders own 6.49% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Federated Hermes Inc. bought a new stake in Strategy during the second quarter valued at $396,000. Cary Street Partners Financial LLC purchased a new stake in shares of Strategy in the 2nd quarter valued at about $202,000. Sei Investments Co. boosted its position in shares of Strategy by 136.0% during the 2nd quarter. Sei Investments Co. now owns 39,905 shares of the software maker’s stock valued at $16,125,000 after acquiring an additional 22,999 shares during the last quarter. The Manufacturers Life Insurance Company grew its holdings in shares of Strategy by 59.4% during the second quarter. The Manufacturers Life Insurance Company now owns 19,215 shares of the software maker’s stock worth $7,767,000 after purchasing an additional 7,158 shares in the last quarter. Finally, Peapack Gladstone Financial Corp increased its position 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 worth $1,235,000 after purchasing an additional 550 shares during the last quarter. 59.84% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Strategy

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

About Strategy

(Get Free Report)

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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