Key Takeaways:
- MicroStrategy enhances its bitcoin holdings with a significant purchase.
- Analyst opinions suggest potential upside for MSTR, but with caution.
- GuruFocus estimates indicate a considerable downside risk based on GF Value.
MicroStrategy (MSTR, Financial) has recently made headlines by acquiring 7,390 bitcoins at a cost of $764.9 million, which translates to an average of $103,498 per bitcoin. This acquisition, spanning from May 12 to May 18, brings the company's total bitcoin holdings to an impressive 576,230 bitcoins. As a result, MicroStrategy's aggregate investment in bitcoin now amounts to $40.18 billion. However, the market responded with MSTR shares trading pre-market at $390.28, reflecting a decrease of 2.38%.
Wall Street Analysts Forecast
Wall Street analysts have provided their insights with one-year price targets for Strategy (MSTR, Financial). The average target price for the stock is pegged at $480.00, with a high projection of $600.00 and a low of $175.00. This average target suggests an upside potential of 20.06% from the current price of $399.80. For more detailed analysis, investors can visit the Strategy (MSTR) Forecast page.
In terms of brokerage recommendations, the consensus from 12 firms rates Strategy (MSTR, Financial) at an average of 2.0, which signifies an "Outperform" status. This rating is part of a scale from 1 (Strong Buy) to 5 (Sell), indicating a generally positive outlook among analysts.
Nevertheless, caution may be warranted. According to GuruFocus estimates, the one-year estimated GF Value for Strategy (MSTR, Financial) is $24.40. This projects a significant downside of 93.9% from the current trading price of $399.8. The GF Value is derived from historical trading multiples, past business growth, and future performance projections. For comprehensive insights into this valuation, explore the Strategy (MSTR) Summary page.
