Strategy Inc Shares Slide 2.3% Amid Analyst Rating Updates
Shares of Strategy Inc (NASDAQ:MSTR) experienced a decline of 2.3% during mid-day trading on Wednesday, October 30, 2023. The stock traded as low as $182.20 before settling at $184.64 by the end of the session. Trading volume surged to 22,269,099 shares, an increase of 48% compared to the average volume of 15,090,631 shares. The stock had closed at $188.99 the previous day.
Analysts have recently issued mixed ratings for Strategy, reflecting varying outlooks on the company’s performance. Citigroup initiated coverage on October 21 with a “buy” rating and a target price of $485.00. In contrast, Sanford C. Bernstein set a target price of $450.00 and rated the stock as “outperform” in a report released on Monday. Monness Crespi & Hardt upgraded their rating from “sell” to “neutral” on November 10.
Additionally, China Renaissance began coverage on October 15, recommending a “buy” rating with a price target of $473.00. Meanwhile, BTIG Research reduced its target price from $700.00 to $630.00 but maintained a “buy” rating. Currently, one research analyst has assigned a “Strong Buy” rating to the stock, while thirteen others have given it a “Buy” rating, and four have classified it as a “Hold.” According to MarketBeat, the stock holds a consensus rating of “Moderate Buy” with a target price of $475.80.
Quarterly Earnings Exceed Expectations
In its most recent quarterly earnings report, released on October 30, Strategy Inc reported earnings per share (EPS) of $8.42, significantly surpassing analysts’ expectations of (0.10) by $8.52. The company generated revenue of $128.69 million, exceeding the consensus estimate of $116.65 million. Year-over-year, the firm achieved a revenue increase of 10.9%. The previous year’s EPS was reported at (1.56). Strategy has set guidance for fiscal year 2025 at $80.000 EPS.
Insider Trading Activity
In other developments, Jane A. Dietze, a director at Strategy, acquired 1,100 shares of the company on November 21 at an average price of $95.28 per share, totaling approximately $104,808.00. This purchase increased her ownership by 73.33%, bringing her total shares to 2,600, valued at around $247,728.
Conversely, Wei-Ming Shao, the executive vice president, sold 2,600 shares on November 19 for an average price of $202.02, amounting to $525,252.00. Following this transaction, Shao holds 32,726 shares valued at approximately $6,611,306.52, representing a 7.36% decrease in his ownership.
Over the past three months, insiders have purchased a total of 37,380 shares worth $3,632,719 while selling 53,177 shares valued at $17,122,166. Insiders currently own 8.46% of the company’s stock.
Institutional Investor Movements
Institutional trading has also seen significant activity. Strategic Investment Solutions Inc. raised its position in Strategy by 410.4% during the third quarter, now holding 684 shares valued at $220,000 after acquiring 550 additional shares. Allworth Financial LP increased its holdings by 3.8%, owning 2,807 shares worth $905,000 after buying 103 shares.
Moreover, Swiss Life Asset Management Ltd boosted its position by 17.0%, owning 27,547 shares valued at $8,876,000. CIBC Bancorp USA Inc. entered a new position during the third quarter with an investment of approximately $6,129,000, while Centaurus Financial Inc. increased its holdings by 15.0%, now owning 6,719 shares valued at $2,165,000.
Hedge funds and institutional investors collectively own 59.84% of Strategy Inc’s stock.
About Strategy Inc: Formerly known as MicroStrategy, the company specializes in providing artificial intelligence-powered enterprise analytics software and services globally, including in the United States, Europe, the Middle East, and Africa. Its flagship offerings include Strategy ONE, designed for non-technical users to gain insights for decision-making, and Strategy Cloud for Government, which ensures continuous threat monitoring for government and financial institutions.
