Microstrategy (MSTR – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Lance Vitanza from TD Cowen maintained a Buy rating on the stock and has a $580.00 price target.
Lance Vitanza of TD Cowen has given MicroStrategy a Buy rating owing to a combination of strong business intelligence (BI) software operational performance and the company’s strategic accumulation of Bitcoin. Vitanza highlights that MicroStrategy’s continued purchase of Bitcoin, including a recent acquisition of 850 Bitcoins using excess cash from the first quarter of 2024, positions the company favorably as the cryptocurrency advances toward mainstream acceptance.
Moreover, Vitanza believes MicroStrategy’s aggressive Bitcoin investment strategy, which saw the company purchase its largest quarterly amount since the fourth quarter of 2020, demonstrates a conviction in Bitcoin as a superior store of value compared to fiat currencies and other assets. The financial analyst notes that the company’s Bitcoin holdings are significantly above their cost basis, offering a substantial market value compared to the recorded book value on their financial statements. This indicates a strong potential for increased asset valuation and justifies the Buy recommendation.
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Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MSTR in relation to earlier this year.
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Microstrategy (MSTR) Company Description:
MicroStrategy, Inc. engages in the provision of enterprise analytics and mobility software. It designs, develops, markets, and sells software platform through licensing arrangements and cloud-based subscriptions and related services. Its flagship platform, MicroStrategy 10, consists of the MicroStrategy Analytics, MicroStrategy Mobile, and Usher brands. The company was founded by Michael J. Saylor and Sanjeev K. Bansal on November 17, 1989 and is headquartered in Vienna, VA.
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