Strategy (NASDAQ:MSTR) Reaches New 12-Month Low – Time to Sell?

Strategy Inc (NASDAQ:MSTR)’s share price reached a new 52-week low during trading on Wednesday . The stock traded as low as $126.74 and last traded at $133.26, with a volume of 26033266 shares traded. The stock had previously closed at $139.63.

Key Headlines Impacting Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Bitcoin recovery and renewed analyst support lifted buying interest — TD Cowen kept a Buy rating and its $440 target, and headlines tied MSTR’s move to a BTC bounce. ‘No Reasonable Scenario’ Forces Strategy To Sell Bitcoin As $440 Target Stands: TD Cowen
• Positive Sentiment: Underlying software/subscriptions revenue beat consensus — Q4 revenue rose ~1.9% and subscription/license growth was noted, a constructive datapoint for the non‑Bitcoin business. Strategy Q4 Earnings Miss Estimates, Revenues Increase Y/Y (Zacks)
• Positive Sentiment: Balance‑sheet size and liquidity signals — company now reports ~713,502 BTC and has raised large amounts of capital, which some investors view as financial firepower to ride out volatility. Strategy Inc Reports 713,502 BTC Holdings Amid $12.4 Billion Quarterly Loss (Blockonomi)
• Neutral Sentiment: Analyst views remain split — some firms cut price targets (Canaccord trimmed its target earlier) but several bullish analysts still defend the long‑term thesis, leaving consensus divergent. Strategy Stock: Analyst Slashes Target 60% Yet Keeps Buy Rating
• Neutral Sentiment: Company is tweaking shareholder frameworks (dividend rules, capital plans) announced alongside results — these are structural but their market effect depends on execution. Strategy Updates Dividend Framework and Highlights Bitcoin Expansion
• Negative Sentiment: Huge Q4 unrealized Bitcoin losses produced a blockbuster accounting hit (reported ~ $12–17B in Q4), driving a wide EPS miss and renewed fear of downside when BTC falls. That remains the primary negative for the equity. Saylor‑led Strategy’s quarterly losses widen as bitcoin faces another reckoning (Reuters)
• Negative Sentiment: Leverage/liquidity risk from debt‑funded BTC purchases and vocal short sellers/critics raise the chance of forced sells or margin stress if Bitcoin moves sharply lower again. Market commentary highlights this as an ongoing tail risk. Strategy Earnings Reveal the Real Risk Behind MSTR Stock (MarketBeat)

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on MSTR shares. Canaccord Genuity Group set a $185.00 price objective on shares of Strategy and gave the company a “buy” rating in a report on Wednesday. HC Wainwright reaffirmed a “buy” rating on shares of Strategy in a report on Friday. TD Cowen reissued a “buy” rating on shares of Strategy in a report on Thursday, January 15th. China Renaissance initiated coverage on Strategy in a research report on Wednesday, October 15th. They set a “buy” rating and a $473.00 target price on the stock. Finally, Monness Crespi & Hardt raised shares of Strategy from a “sell” rating to a “neutral” rating in a report on Monday, November 10th. Twelve equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $386.53.

Strategy Price Performance

The company has a 50-day moving average of $163.15 and a 200 day moving average of $262.24. The company has a quick ratio of 0.66, a current ratio of 0.66 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $38.77 billion, a PE ratio of -7.33 and a beta of 3.54.

Strategy (NASDAQ:MSTR) last announced its earnings results on Thursday, February 5th. The software maker reported ($42.93) earnings per share (EPS) for the quarter, missing the consensus estimate of $46.02 by ($88.95). The business had revenue of $122.99 million for the quarter, compared to analyst estimates of $117.42 million. Strategy had a negative return on equity of 8.74% and a negative net margin of 806.34%.The company’s revenue for the quarter was up 1.9% compared to the same quarter last year. During the same period last year, the firm earned ($3.03) EPS.

Insider Activity at Strategy

In other news, Director Carl J. Rickertsen purchased 5,000 shares of the stock in a transaction dated Monday, January 12th. The shares were purchased at an average price of $155.88 per share, with a total value of $779,400.00. Following the transaction, the director owned 5,000 shares in the company, valued at $779,400. The trade was a ∞ increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Jane A. Dietze acquired 1,000 shares of the company’s stock in a transaction that occurred on Tuesday, January 20th. The stock was purchased at an average cost of $99.48 per share, with a total value of $99,480.00. Following the acquisition, the director directly owned 3,600 shares of the company’s stock, valued at $358,128. This trade represents a 38.46% increase in their position. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders purchased 7,112 shares of company stock valued at $984,888 and sold 13,177 shares valued at $2,843,166. Insiders own 8.46% of the company’s stock.

Institutional Trading of Strategy

Hedge funds and other institutional investors have recently made changes to their positions in the company. Dogwood Wealth Management LLC increased its stake in Strategy by 280.0% during the fourth quarter. Dogwood Wealth Management LLC now owns 190 shares of the software maker’s stock worth $29,000 after acquiring an additional 140 shares during the last quarter. Pilgrim Partners Asia Pte Ltd acquired a new stake in shares of Strategy during the 3rd quarter worth about $32,000. Quent Capital LLC purchased a new stake in Strategy in the 3rd quarter valued at about $33,000. Binnacle Investments Inc increased its position in shares of Strategy by 492.9% during the second quarter. Binnacle Investments Inc now owns 83 shares of the software maker’s stock valued at $34,000 after acquiring an additional 69 shares during the last quarter. Finally, SOA Wealth Advisors LLC. raised its stake in shares of Strategy by 44.4% in the 3rd quarter. SOA Wealth Advisors LLC. now owns 117 shares of the software maker’s stock valued at $38,000 after acquiring an additional 36 shares during the period. Institutional investors and hedge funds own 59.84% of the company’s stock.

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.