CrowdStrike (NASDAQ:CRWD) Shares Down 3% - Should You Sell?

Key Points

• CrowdStrike (CRWD) shares fell by 3% during trading, closing at $493.66 after reaching a low of $493.29, with trading volume down 15% from average.
• Analysts remain optimistic, with KeyCorp raising their price target to $510 and Needham increasing theirs to $535, while overall ratings show a strong bias towards buying.
• Despite the drop, CrowdStrike reported a quarterly earnings beat with $0.93 per share, and revenue up 21.4% year-over-year, indicating strong growth potential.

CrowdStrike (NASDAQ:CRWD - Get Free Report) shares were down 3% during trading on Friday . The stock traded as low as $493.29 and last traded at $493.66. Approximately 3,098,330 shares traded hands during mid-day trading, a decline of 15% from the average daily volume of 3,643,544 shares. The stock had previously closed at $509.13.

Wall Street Analysts Forecast Growth

Several analysts have commented on CRWD shares. KeyCorp raised their price objective on shares of CrowdStrike from $495.00 to $510.00 and gave the stock an "overweight" rating in a report on Thursday, September 18th. Needham & Company LLC raised their target price on shares of CrowdStrike from $475.00 to $535.00 and gave the company a "buy" rating in a research note on Thursday, September 18th. Cfra reaffirmed a "hold" rating and set a $555.00 target price (up previously from $517.00) on shares of CrowdStrike in a research note on Thursday, July 10th. Wedbush reaffirmed a "buy" rating on shares of CrowdStrike in a research note on Thursday, August 28th. Finally, Evercore ISI raised their target price on shares of CrowdStrike from $405.00 to $430.00 in a research note on Thursday, September 18th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, seventeen have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $493.33.

CrowdStrike Stock Down 3.0%

The company has a market cap of $123.89 billion, a P/E ratio of -414.84, a P/E/G ratio of 119.83 and a beta of 1.19. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.88 and a quick ratio of 1.88. The company's 50-day moving average is $449.10 and its two-hundred day moving average is $443.15.

CrowdStrike (NASDAQ:CRWD - Get Free Report) last announced its quarterly earnings results on Wednesday, August 27th. The company reported $0.93 earnings per share for the quarter, beating the consensus estimate of $0.83 by $0.10. The company had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.15 billion. CrowdStrike had a negative net margin of 6.84% and a negative return on equity of 1.53%. The firm's quarterly revenue was up 21.4% compared to the same quarter last year. During the same quarter last year, the firm earned $1.04 earnings per share. CrowdStrike has set its FY 2026 guidance at 3.600-3.72 EPS. Q3 2026 guidance at 0.930-0.95 EPS. As a group, equities analysts predict that CrowdStrike will post 0.55 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Sameer K. Gandhi sold 6,250 shares of the firm's stock in a transaction that occurred on Thursday, September 4th. The shares were sold at an average price of $410.32, for a total value of $2,564,500.00. Following the sale, the director owned 768,511 shares in the company, valued at approximately $315,335,433.52. This trade represents a 0.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, President Michael Sentonas sold 20,000 shares of the firm's stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $500.00, for a total transaction of $10,000,000.00. Following the completion of the sale, the president owned 379,116 shares in the company, valued at $189,558,000. This represents a 5.01% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 132,816 shares of company stock valued at $62,606,356 in the last ninety days. Corporate insiders own 3.32% of the company's stock.

Institutional Investors Weigh In On CrowdStrike

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its stake in shares of CrowdStrike by 2.6% during the 2nd quarter. Vanguard Group Inc. now owns 23,430,572 shares of the company's stock worth $11,933,425,000 after acquiring an additional 596,007 shares during the last quarter. State Street Corp boosted its stake in shares of CrowdStrike by 3.6% during the 2nd quarter. State Street Corp now owns 10,804,651 shares of the company's stock worth $5,502,917,000 after acquiring an additional 370,965 shares during the last quarter. Jennison Associates LLC boosted its stake in shares of CrowdStrike by 21.1% during the 1st quarter. Jennison Associates LLC now owns 6,565,275 shares of the company's stock worth $2,314,785,000 after acquiring an additional 1,144,295 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of CrowdStrike by 5.0% during the 2nd quarter. Geode Capital Management LLC now owns 5,728,167 shares of the company's stock worth $2,903,752,000 after acquiring an additional 273,922 shares during the last quarter. Finally, Laurel Wealth Advisors LLC boosted its stake in shares of CrowdStrike by 54,635.9% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 4,293,484 shares of the company's stock worth $2,186,714,000 after acquiring an additional 4,285,640 shares during the last quarter. Hedge funds and other institutional investors own 71.16% of the company's stock.

About CrowdStrike

CrowdStrike Holdings, Inc provides cybersecurity solutions in the United States and internationally. Its unified platform offers cloud-delivered protection of endpoints, cloud workloads, identity, and data. The company offers corporate endpoint and cloud workload security, managed security, security and vulnerability management, IT operations management, identity protection, SIEM and log management, threat intelligence, data protection, security orchestration, automation and response and AI powered workflow automation, and securing generative AI workload services.

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