MSTR Stock Outlook as Wall Street Raises Target to $400 and Strategy Director Sells Shares

Strategy (NASDAQ: MSTR) opened trading at $166 on May 19 after dropping by 12% in the last five trading days. This drop comes after Strategy director Jarrod Patten sold $286,280 worth of MSTR shares on May 14. But this drop has not made Wall Street bearish because TD Cowen now says the MSTR stock price might reach $400, and it remains with a “buy” rating.

Wall Street Raises MSTR Stock Target as Director Sells Shares

TD Cowen says that the MSTR stock price will reach $400, adding $5 to the $395 target it had given on May 7. The investment bank says that the high rate at which Strategy is buying Bitcoin, with an estimated 100,000 BTC purchase in Q2 2026, is why the stock will likely reach $400.

CoinGape reported that Strategy bought another $2 billion on May 18, which brought all its holdings to 843,798 BTC. Satoshi is the only entity that has more Bitcoin than Strategy, with 1 million coins.

TD Cowen also said Strategy’s plan to repurchase nearly $1.5 billion of convertible notes will also take the MSTR stock to $400. But Strategy might have to sell Bitcoin to fund this $1.5 billion repurchase.

MSTR stock traded at $166 at the time of writing, and has to go up by 140% for it to meet this target of $400 in the next 12 months. But Strategy Director Jarrod Patten is not waiting for this potential gain after he sold 1,500 shares.

Patten sold the 1,500 shares for $286,280 on May 14. But he had also acquired 1,500 MSTR shares by exercising stock options for $27,981. He holds 28,000 MSTR shares worth $4.64 million at press time.

MSTR Outlook as Bears Test Support

A CoinGape MSTR price analysis in April had detected a double bottom with a target of $200 that has already played out after the stock reached $197 on May 11. But after Strategy reached $197, it started pulling back, and bears want to test if the support at $148 is going to hold.

The bullish pattern reached its $197 target, and that means two things may happen: support at $148 will hold and the price will bounce back up, or the support will fail to hold and cause a drop to $117.

Traders started taking profits after MSTR stock reached $197, and this has caused the 12% drop in the last five trading days. The CMF reading of -0.02 confirms this because, after a steady rise since November 2025, the CMF is now dropping and showing capital flight.

But the AO bars that are on the negative side and shrinking show that bears are weakening, and this may prevent the MSTR stock price from dropping to $117. Another bounce from the $148 support to $200 again will be confirmed if these bars read positive.