Strategy (NASDAQ:MSTR) Sets New 52-Week Low – Here’s Why

Strategy Inc (NASDAQ:MSTR) shares reached a new 52-week low during trading on Thursday . The company traded as low as $142.00 and last traded at $142.6080, with a volume of 10448825 shares trading hands. The stock had previously closed at $158.45.

Strategy News Roundup

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy continued to add to its bitcoin treasury with a reported ~$264.1M purchase, reinforcing management’s long?term bitcoin accumulation strategy and supporting the company’s core asset base. Michael Saylor’s Strategy Buys Another $264,100,000 in Bitcoin (BTC)
• Neutral Sentiment: Cantor Fitzgerald initiated coverage on MSTR — initiation can increase flow and analyst attention, but the immediate impact depends on the firm’s rating and target (not included in the brief). Cantor Fitzgerald Initiates Coverage on Strategy (NASDAQ:MSTR)
• Neutral Sentiment: Market commentary explaining why MSTR has underperformed the broader market highlights the stock’s sensitivity to bitcoin moves and company-specific developments; such analysis can amplify selling in a down tape by reminding investors of the high correlation to BTC and concentrated exposure. Here’s Why Strategy (MSTR) Fell More Than Broader Market
• Negative Sentiment: A new structured product tied to Strategy’s bitcoin holdings (STRC) is getting coverage — it markets an ~11% fiat yield and senior claim on Strategy’s BTC. That can (a) create investor concern about encumbrance or senior claims on the company’s bitcoin, (b) raise questions about dilution or off?balance?sheet leverage, and (c) increase perceived complexity/credit risk around the treasury strategy. These factors can weigh on equity sentiment even if the product attracts institutional demand. Strategy’s STRC Bitcoin-Backed Instrument Challenges Traditional Fixed?Income Markets

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on MSTR shares. Truist Financial set a $268.00 price objective on shares of Strategy in a research note on Friday, January 9th. Citigroup decreased their price objective on Strategy from $485.00 to $325.00 and set a “buy” rating for the company in a report on Monday, December 22nd. HC Wainwright dropped their price objective on Strategy from $521.00 to $475.00 and set a “buy” rating on the stock in a report on Monday, November 3rd. Sanford C. Bernstein set a $450.00 price objective on Strategy and gave the company an “outperform” rating in a research note on Monday, December 8th. Finally, Canaccord Genuity Group boosted their price target on shares of Strategy from $464.00 to $474.00 and gave the company a “buy” rating in a research report on Monday, November 3rd. Twelve research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $435.44.

Strategy Stock Performance

The company has a debt-to-equity ratio of 0.16, a current ratio of 0.66 and a quick ratio of 0.66. The stock has a 50 day moving average of $168.11 and a two-hundred day moving average of $274.02. The stock has a market capitalization of $41.21 billion, a PE ratio of 6.69 and a beta of 3.42.

Strategy (NASDAQ:MSTR) last released its quarterly earnings data on Thursday, October 30th. The software maker reported $8.42 EPS for the quarter, topping the consensus estimate of ($0.10) by $8.52. The business had revenue of $128.69 million for the quarter, compared to analyst estimates of $116.65 million. Strategy had a net margin of 1,667.09% and a return on equity of 20.98%. The business’s revenue for the quarter was up 10.9% compared to the same quarter last year. During the same period in the previous year, the firm earned ($1.56) EPS.

Insiders Place Their Bets

In related news, Director Jane A. Dietze acquired 1,000 shares of the stock in a transaction that occurred on Tuesday, January 20th. The shares were purchased at an average cost of $99.48 per share, with a total value of $99,480.00. Following the completion of the transaction, the director owned 3,600 shares of the company’s stock, valued at approximately $358,128. This trade represents a 38.46% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Carl J. Rickertsen purchased 5,000 shares of the stock in a transaction that occurred on Monday, January 12th. The stock was purchased at an average cost of $155.88 per share, with a total value of $779,400.00. Following the purchase, the director owned 5,000 shares in the company, valued at $779,400. This represents a ? increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders bought 7,112 shares of company stock worth $984,888 and sold 13,177 shares worth $2,843,166. 8.46% of the stock is currently owned by insiders.

Institutional Trading of Strategy

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Patton Fund Management Inc. acquired a new stake in Strategy during the second quarter valued at approximately $209,000. V Square Quantitative Management LLC bought a new position in Strategy in the 2nd quarter valued at $51,000. Janney Montgomery Scott LLC increased its position in Strategy by 2.0% in the second quarter. Janney Montgomery Scott LLC now owns 28,461 shares of the software maker’s stock worth $11,505,000 after purchasing an additional 556 shares during the period. HB Wealth Management LLC boosted its stake in Strategy by 2.4% in the second quarter. HB Wealth Management LLC now owns 3,061 shares of the software maker’s stock valued at $1,237,000 after acquiring an additional 72 shares during the last quarter. Finally, Client 1ST Advisory Group LLC boosted its position in shares of Strategy by 50.0% in the 2nd quarter. Client 1ST Advisory Group LLC now owns 1,968 shares of the software maker’s stock worth $796,000 after purchasing an additional 656 shares during the last quarter. 59.84% of the stock is currently owned by institutional investors and hedge funds.

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.