Strategy Inc Common Stock Class A (NASDAQ:MSTR) shares are surging on Wednesday, gaining momentum in early trading. The move comes as major indices are experiencing declines, with the S&P 500 down 0.38% and the Nasdaq down 0.53%, indicating that the stock is moving against broader market trends.
Director Discloses First Open-Market Purchase In Over Three Years
Company director Carl Rickertsen disclosed the purchase of 5,000 shares of Strategy for approximately $779,395. The transaction marked Rickertsen's first open-market purchase in more than three and a half years, following a prolonged period in which he consistently sold shares received through compensation.
The purchase followed a roughly 68% decline in Strategy shares from highs of $457. Rickertsen acquired the shares at an average price of $155.88, within Monday's intraday trading range.
Draft Legislation Aims To Clarify U.S. Crypto Regulation
In broader sector news, U.S. senators unveiled draft legislation that would establish a regulatory framework for cryptocurrency, according to Reuters. The proposal would define when crypto tokens are considered securities or commodities and clarify regulatory jurisdiction between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.
The bill would grant the CFTC authority to oversee spot crypto markets and includes provisions addressing stablecoins, including restrictions on paying interest solely for holding a stablecoin while allowing rewards tied to certain activities. The Senate Banking Committee is scheduled to debate the legislation and consider amendments, while the Senate Agriculture Committee is working on a separate version.
Bitcoin (CRYPTO: BTC) is trading higher on Wednesday, which may be contributing to the move, as Strategy movement is linked to Bitcoin price action given that the company runs the largest bitcoin treasury among public companies. Bitcoin was up 4.86%, trading at $96,886 at the time of publication.
A Closer Look At The Technical Setup
The stock is currently trading 10% above its 20-day simple moving average (SMA) but remains 30.2% below its 100-day SMA, indicating a mixed technical picture. Over the past 12 months, shares have decreased by 49.44%, and they are currently positioned closer to their 52-week lows than highs, which suggests ongoing challenges for the stock.
The RSI is at 51.08, reflecting neutral momentum, while the MACD is above its signal line, indicating bullish potential. This combination suggests that while the stock is not overbought or oversold, there may be some underlying strength that traders are watching.
Earnings And Analyst Outlook
Investors are also looking ahead to the next earnings report on Feb. 4.
- EPS Estimate: $0.73 (Up from $-3.20 YoY)
- Revenue Estimate: $118.29 million (Down from $120.70 million YoY)
- Valuation: Forward P/E of 7.1x (Indicates value opportunity)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $456.97. Recent analyst moves include:
- Citigroup: Buy (Lowered Target to $325.00)
- Bernstein: Outperform (Lowered Target to $450.00)
- Monness, Crespi, Hardt: Upgraded to Neutral
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Strategy, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 83/100) — Stock is outperforming the broader market.
- Value: Risk (Score: 4/100) — Trading at a steep premium relative to peers.
The Verdict: Strategy’s Benzinga Edge signal reveals a classic ‘High-Flyer’ setup. While the Momentum (83) confirms the strong trend, the extremely low Value (4) score warns that the stock is priced for perfection — investors should ride the trend but use tight stop-losses.
MSTR Price Action: Strategy shares were up 6.24% at $183.82 during early trading on Wednesday, according to Benzinga Pro data.
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