Strategy (NASDAQ:MSTR) Shares Down 7.8% – Should You Sell?

Shares of Strategy Inc (NASDAQ:MSTR) dropped 7.8% during mid-day trading on Tuesday . The stock traded as low as $159.17 and last traded at $160.1510. Approximately 5,344,341 shares were traded during mid-day trading, a decline of 77% from the average daily volume of 23,024,195 shares. The stock had previously closed at $173.71.

Key Stories Impacting Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Strategy disclosed another massive buy — ~22,305 BTC (~$2.13B), pushing its public holdings past 700,000 BTC, underscoring management’s continued commitment to using capital markets to accumulate bitcoin. Article Title
• Positive Sentiment: Company confirmed it expanded bitcoin holdings using proceeds from its at‑the‑market equity program, signaling a steady, planned buy strategy that can increase asset backing per share over time. Article Title
• Positive Sentiment: Institutional buying interest surfaced — reports that Vanguard made a first ~$505M investment in Strategy signal growing institutional exposure to MSTR shares. Institutional support can provide a floor under the stock in volatile periods. Article Title
• Neutral Sentiment: Smaller, public funds have taken positions (e.g., a U.S. pension fund reported a surprise buy), showing diversified holder base but not necessarily large directional impact. Article Title
• Neutral Sentiment: State-level exposure reported — Louisiana’s state employees fund disclosed a small MSTR stake, reflecting incremental institutional interest but modest scale relative to the company’s market cap. Article Title
• Negative Sentiment: Analysts and outlets question whether the bitcoin‑treasury feedback loop still works — with BTC down materially from recent highs, MSTR’s equity now reacts less favorably to trades and faces larger mark-to-market swings on its bitcoin inventory. Article Title
• Negative Sentiment: Market pressure on crypto — commentary labels today’s action a “crypto winter” and links MSTR weakness to broader BTC weakness and risk-off flows that have pushed the stock significantly lower over recent months. Article Title
• Negative Sentiment: Deep recent drawdown and analyst caution — coverage highlights a ~59–62% decline over recent months, large unrealized bitcoin losses on the balance sheet, and elevated volatility/valuation concerns that may keep downside risk elevated until bitcoin stabilizes. Article Title

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on MSTR shares. Cowen reaffirmed a “buy” rating on shares of Strategy in a research report on Thursday, January 15th. Citigroup reduced their price target on shares of Strategy from $485.00 to $325.00 and set a “buy” rating for the company in a research note on Monday, December 22nd. Canaccord Genuity Group increased their price objective 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. Truist Financial set a $268.00 target price on shares of Strategy in a report on Friday, January 9th. Finally, China Renaissance began coverage on shares of Strategy in a research note on Wednesday, October 15th. They set a “buy” rating and a $473.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $435.44.

Strategy Stock Performance

The business’s fifty day simple moving average is $174.60 and its 200-day simple moving average is $285.39. The company has a market capitalization of $46.69 billion, a P/E ratio of 7.57 and a beta of 3.42. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.66 and a current ratio of 0.66.

Strategy (NASDAQ:MSTR) last posted its earnings results on Thursday, October 30th. The software maker reported $8.42 EPS for the quarter, topping analysts’ consensus estimates of ($0.10) by $8.52. The company had revenue of $128.69 million for the quarter, compared to the consensus estimate of $116.65 million. Strategy had a return on equity of 20.98% and a net margin of 1,667.09%.The firm’s revenue for the quarter was up 10.9% on a year-over-year basis. During the same period in the previous year, the business earned ($1.56) earnings per share. Strategy has set its FY 2025 guidance at 80.000-80.000 EPS.

Insider Buying and Selling at Strategy

In other news, Director Jane A. Dietze purchased 1,100 shares of the company’s stock in a transaction that occurred on Friday, November 21st. The stock was purchased at an average cost of $95.28 per share, with a total value of $104,808.00. Following the purchase, the director owned 2,600 shares in the company, valued at approximately $247,728. This trade represents a 73.33% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Carl J. Rickertsen purchased 5,000 shares of the business’s stock in a transaction that occurred on Monday, January 12th. The shares were purchased at an average price of $155.88 per share, for a total transaction of $779,400.00. Following the completion of the acquisition, the director directly owned 5,000 shares in the company, valued at $779,400. The trade was a ∞ increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders have purchased 6,112 shares of company stock worth $885,408 and have sold 13,177 shares worth $2,843,166. Company insiders own 8.46% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the business. RiverFront Investment Group LLC acquired a new stake in shares of Strategy during the 2nd quarter worth approximately $3,561,000. J.W. Cole Advisors Inc. grew its position in Strategy by 25.3% in the second quarter. J.W. Cole Advisors Inc. now owns 10,262 shares of the software maker’s stock worth $4,148,000 after acquiring an additional 2,069 shares during the period. Resona Asset Management Co. Ltd. grew its position in Strategy by 13.6% in the second quarter. Resona Asset Management Co. Ltd. now owns 77,914 shares of the software maker’s stock worth $31,298,000 after acquiring an additional 9,338 shares during the period. Stevens Capital Management LP acquired a new stake in Strategy during the second quarter worth $35,967,000. Finally, Swiss National Bank raised its position in Strategy by 17.1% in the second quarter. Swiss National Bank now owns 749,300 shares of the software maker’s stock valued at $302,890,000 after purchasing an additional 109,500 shares during the period. Hedge funds and other institutional investors 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.