MSTR Stock Price Risks Deeper Fall as Strategy Director Offloads Shares

MSTR stock price faces renewed downside risks after a Strategy board director filed with the US SEC to sell company shares. It coincides with the stock’s recent weakness.

MicroStrategy Class A stock is under selling pressure amid share dilution, lower analyst forecasts, and falling Bitcoin prices.

Strategy Director Jarrod Patten Sold 700 Class A Common Shares

According to the latest SEC filing, Strategy director Jarrod Patten sold 700 MSTR Class A common stock worth $96,159. The latest MSTR stock selloff by Patten comes after recent insider sales.

In March alone, Strategy CEO Phong Le, CFO Andrew Kang, and former executive vice president Wei-Ming Shao have sold MSTR stock worth millions. Phong Le and Andrew Kang sold additional shares.

As per the filing, Jarrod Patten acquired the shares from an option granted in May 2016, with Fidelity Brokerage Services as the broker. The latest sale is relatively small compared to the Strategy director’s prior transactions. However, any insider selling can trigger speculations, especially amid MSTR stock dilutions to acquire more BTC.

MSTR Stock Price Falls

MSTR stock price closed 4.43% lower at $132.96 on Thursday amid a broader sell-off in US stock and crypto markets. The intraday low and high were $132.69 and $139.08, respectively. Trading volume was also below the average volume of 22 million.

In the premarket trading hours, MSTR stock price is trading 2.50% lower at $129.75 today. The stock is almost near erasing all gains this month. MicroStrategy stock is down more than 15% year-to-date and 60% over the past year.

Analysts from Citigroup, Bernstein, and Mizuho have cut price targets for MSTR stock. Bernstein analyst Gautam Chhugani reiterated a buy rating and set a 12-month price target of $450.

Bitcoin has tumbled more than 4% today amid quarterly crypto options expiry, with the price currently trading at $66,416. The 24-hour low and high are $66,362 and $69,826, respectively. Trading volume has increased by 21% over the past 24 hours.