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

Posted by George Bondi on Aug 6th, 2026

Strategy (NASDAQ:MSTR – Get Free Report) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Several other research analysts have also recently issued reports on MSTR. TD Cowen reduced their target price on shares of Strategy from $400.00 to $260.00 and set a “buy” rating for the company in a report on Tuesday, June 30th. Credit Suisse Group set a $250.00 price objective on Strategy in a research note on Tuesday, June 30th. B. Riley Financial decreased their price objective on Strategy from $215.00 to $155.00 and set a “buy” rating for the company in a report on Monday. Weiss Ratings downgraded Strategy from a “hold (c)” rating to a “sell (d)” rating in a research note on Tuesday. Finally, Benchmark reaffirmed a “buy” rating and set a $435.00 target price (down from $570.00) on shares of Strategy in a report on Monday, July 27th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $242.81.

Read Our Latest Research Report on Strategy

Strategy Price Performance

Shares of NASDAQ:MSTR opened at $98.37 on Tuesday. Strategy has a twelve month low of $81.81 and a twelve month high of $414.36. The company has a current ratio of 5.39, a quick ratio of 6.05 and a debt-to-equity ratio of 0.22. The company has a market cap of $34.47 billion, a PE ratio of -1.01 and a beta of 3.54. The company’s 50 day moving average is $106.67 and its 200 day moving average is $133.20.

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

Insider Buying and Selling at Strategy

In other news, CFO Andrew Kang sold 33,062 shares of the firm’s stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $118.73, for a total transaction of $3,925,451.26. Following the sale, the chief financial officer directly owned 68,733 shares in the company, valued at $8,160,669.09. This trade represents a 32.48% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Phong Le sold 93,738 shares of Strategy stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $118.73, for a total value of $11,129,512.74. Following the completion of the transaction, the chief executive officer owned 119,925 shares of the company’s stock, valued at approximately $14,238,695.25. This represents a 43.87% decrease in their position. 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 bought 11,166 shares of company stock valued at $1,014,265 and sold 181,422 shares valued at $23,144,128. 6.49% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Strategy

A number of hedge funds have recently bought and sold shares of the business. Daviman Financial LLC purchased a new position in Strategy in the 4th quarter valued at about $1,013,000. Eurizon Capital SGR S.p.A. purchased a new stake in Strategy during the 4th quarter worth approximately $4,237,000. Vanguard Group Inc. increased its stake in Strategy by 21.0% during the 4th quarter. Vanguard Group Inc. now owns 24,062,886 shares of the software maker’s stock worth $3,656,356,000 after buying an additional 4,178,611 shares in the last quarter. ProShare Advisors LLC raised its holdings in shares of Strategy by 45.7% during the fourth quarter. ProShare Advisors LLC now owns 417,790 shares of the software maker’s stock valued at $63,483,000 after acquiring an additional 131,014 shares during the last quarter. Finally, EverSource Wealth Advisors LLC raised its holdings in shares of Strategy by 48.9% during the fourth quarter. EverSource Wealth Advisors LLC now owns 52,606 shares of the software maker’s stock valued at $7,994,000 after acquiring an additional 17,270 shares during the last quarter. Hedge funds and other institutional investors own 59.84% of the company’s stock.

Strategy News Summary

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.