MSTR Stock Outlook as Wall Street Analysts Trim Targets Despite STRC Rally to 7-Week High

Strategy (NASDAQ: MSTR) stock price gained by 1.69% on August 4 to close trading at $94. The gain occurred after Strategy announced selling $1,638 BTC, with the proceeds of the sale going towards repurchasing $81.2 million worth of STRC shares.

The $81.2 million share buyback pushed the price of STRC shares to $92, with this being their highest price since June 17. Still, two Wall Street firms, Cantor Fitzgerald and B.Riley, have trimmed their targets on MSTR stock.

Cantor Fitzgerald and B.Riley Cut MSTR Stock Targets

Analysts at Cantor Fitzgerald have reduced their price target on MSTR stock from $212 to $186. The firm says that it reduced the target to $186 because the price of Bitcoin will not reach $111,000 by August 2027 like it had earlier forecasted. Instead, the firm expects BTC price to reach $98,000.

B.Riley has also lowered its price target for MSTR stock from $215 to $155. The Wall Street firm attributes the reduced target to a lower forecast on Bitcoin price from $81,500 to $65,000.

B’Riley also says that it lowered its target because Strategy is no longer purchasing Bitcoin. An earlier report by CoinGape revealed that Strategy sold $106 million worth of Bitcoin in the week between July 27 and July 31.

STRC Share Price Hits 7-Week High

Strategy is using the money coming from selling Bitcoin and MSTR stock to buy back STRC shares in an attempt to push the price back to $100. Strategy has purchased back $106 million worth of STRC shares since June 29, when it announced a new capital allocation framework to take STRC back to par.

These share buybacks seem to be paying off because STRC stock is now up by 29% from the all-time low of $71 seen in June 26.

The rising value of STRC shares is raising speculation that Strategy might begin purchasing Bitcoin again because the company’s CEO, Phong Le, earlier said that Strategy will resume purchasing BTC if STRC reaches $100.

MSTR Stock Outlook as Price Remains Stuck in Consolidation

The price of Strategy shares has traded between $90 and $100 since July 2. This suggests that the stock has consolidated for four weeks, with neither buyers nor sellers having the upper hand.

MSTR stock needs to close above the psychological resistance of $100 for three straight days to confirm that the short-term trend is changing to favor bulls.

If MSTR shares close above $100, the price could gain and reach the June 15 high of $136. But that gain could only occur if the buying pressure for this stock increases.

Still, the RSI reading of 44 suggests that the momentum is still favoring bulls. The BBTrend that is also red and negative also suggests that the MSTR stock price forecast is bearish.

If MSTR stock closes above the support of $90, it could cause another drop to the June 26 low of $81. This drop could occur if the price of Bitcoin continues to drop and causes an increase in Strategy’s unrealized losses on Bitcoin.