Stock Traders Purchase Large Volume of Strategy Call Options (NASDAQ:MSTR)

Strategy Inc (NASDAQ:MSTR) saw some unusual options trading on Friday. Stock traders bought 736,850 call options on the stock. This is an increase of approximately 35% compared to the typical volume of 546,927 call options.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on MSTR shares. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Strategy in a research report on Wednesday, October 8th. Canaccord Genuity Group increased their price target on Strategy from $464.00 to $474.00 and gave the company a “buy” rating in a research note on Monday, November 3rd. Monness Crespi & Hardt raised shares of Strategy from a “sell” rating to a “neutral” rating in a research report on Monday, November 10th. Cowen reiterated a “buy” rating on shares of Strategy in a report on Friday, October 31st. Finally, Benchmark restated a “buy” rating on shares of Strategy in a research note on Monday, December 1st. 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 company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $485.80.

Insider Activity at Strategy

In related news, EVP Wei-Ming Shao sold 30,000 shares of the business’s stock in a transaction on Tuesday, October 7th. The shares were sold at an average price of $357.37, for a total transaction of $10,721,100.00. Following the transaction, the executive vice president directly owned 12,726 shares in the company, valued at approximately $4,547,890.62. The trade was a 70.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Jarrod M. Patten purchased 12,000 shares of the company’s stock in a transaction on Friday, October 17th. The shares were purchased at an average cost of $96.88 per share, for a total transaction of $1,162,560.00. Following the completion of the transaction, the director directly owned 29,335 shares of the company’s stock, valued at approximately $2,841,974.80. This represents a 69.22% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders bought 37,380 shares of company stock valued at $3,632,719 and sold 53,177 shares valued at $17,122,166. 8.46% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of MSTR. Norges Bank acquired a new position in shares of Strategy during the second quarter worth $1,203,062,000. Amundi grew its position in shares of Strategy by 378.9% in the 2nd quarter. Amundi now owns 1,783,982 shares of the software maker’s stock valued at $717,660,000 after buying an additional 1,411,500 shares during the last quarter. Vanguard Group Inc. increased its stake in shares of Strategy by 7.3% in the third quarter. Vanguard Group Inc. now owns 19,884,275 shares of the software maker’s stock valued at $6,406,912,000 after buying an additional 1,344,519 shares during the period. Capital Research Global Investors raised its position in shares of Strategy by 33.6% during the third quarter. Capital Research Global Investors now owns 4,205,258 shares of the software maker’s stock worth $1,354,982,000 after acquiring an additional 1,057,804 shares during the last quarter. Finally, Harvest Portfolios Group Inc. lifted its stake in shares of Strategy by 119.0% in the third quarter. Harvest Portfolios Group Inc. now owns 1,550,520 shares of the software maker’s stock worth $499,593,000 after acquiring an additional 842,480 shares during the period. Institutional investors own 59.84% of the company’s stock.

Strategy Stock Performance

NASDAQ MSTR opened at $178.99 on Friday. The firm has a 50-day moving average price of $254.55 and a two-hundred day moving average price of $332.62. Strategy has a 12-month low of $155.61 and a 12-month high of $457.22. The company has a market capitalization of $51.43 billion, a P/E ratio of 8.33 and a beta of 3.40. The company has a quick ratio of 0.66, a current ratio of 0.66 and a debt-to-equity ratio of 0.16.

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

About Strategy

Strategy Incorporated, formerly known as MicroStrategy, provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers Strategy ONE, a platform that allows non-technical users to access novel and actionable insights for decision-making, and Strategy Cloud for Government, which provides always-on threat monitoring designed to meet the strict technical and regulatory standards of governments and financial institutions.