CrowdStrike (NASDAQ:CRWD) Shares Down 4.1% - Here's Why

Key Points

• CrowdStrike shares fell 4.1% to about $423.84 on Monday, with mid‑day volume slightly below the recent average.
• Analysts have adjusted targets but the consensus remains a "Moderate Buy" with an average price target of $506.26 and major targets ranging roughly from $499 to $600.
• CrowdStrike slightly beat quarterly expectations (EPS $1.12 vs $1.10; revenue $1.31B vs $1.30B, +23.8% YoY) but still shows a negative net margin (-3.81%), and insiders sold about 90,024 shares (~$40.4M) in the past three months.

CrowdStrike (NASDAQ:CRWD - Get Free Report)'s stock price traded down 4.1% on Monday . The company traded as low as $423.77 and last traded at $423.84. 3,611,727 shares were traded during mid-day trading, a decline of 9% from the average session volume of 3,970,131 shares. The stock had previously closed at $441.78.

Analysts Set New Price Targets

Several analysts have issued reports on the company. Argus cut their price objective on CrowdStrike from $600.00 to $520.00 and set a "buy" rating on the stock in a report on Thursday, March 5th. BTIG Research dropped their target price on shares of CrowdStrike from $640.00 to $499.00 and set a "buy" rating on the stock in a research report on Monday, March 2nd. Morgan Stanley upgraded shares of CrowdStrike from an "equal weight" rating to an "overweight" rating and boosted their price target for the company from $487.00 to $510.00 in a report on Tuesday, March 10th. Berenberg Bank set a $600.00 price objective on shares of CrowdStrike and gave the stock a "buy" rating in a research note on Friday, January 9th. Finally, Truist Financial lowered their price objective on shares of CrowdStrike from $600.00 to $550.00 and set a "buy" rating on the stock in a research report on Tuesday, February 17th. One investment analyst has rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, fifteen have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $506.26.

CrowdStrike Trading Down 4.1%

The business's 50-day simple moving average is $428.62 and its 200-day simple moving average is $470.00. The company has a market cap of $107.49 billion, a PE ratio of -572.75, a P/E/G ratio of 19.38 and a beta of 1.07. The company has a current ratio of 1.77, a quick ratio of 1.77 and a debt-to-equity ratio of 0.17.

CrowdStrike (NASDAQ:CRWD - Get Free Report) last posted its quarterly earnings results on Tuesday, March 3rd. The company reported $1.12 EPS for the quarter, beating the consensus estimate of $1.10 by $0.02. CrowdStrike had a negative net margin of 3.81% and a negative return on equity of 0.14%. The business had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.30 billion. During the same period in the previous year, the company posted $1.03 EPS. CrowdStrike's revenue was up 23.8% on a year-over-year basis. As a group, analysts expect that CrowdStrike will post 0.55 EPS for the current fiscal year.

Insider Activity at CrowdStrike

In related news, CAO Anurag Saha sold 836 shares of the business's stock in a transaction that occurred on Wednesday, December 24th. The stock was sold at an average price of $476.83, for a total value of $398,629.88. Following the completion of the sale, the chief accounting officer owned 43,726 shares of the company's stock, valued at approximately $20,849,868.58. The trade was a 1.88% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, President Michael Sentonas sold 11,461 shares of the stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $479.78, for a total value of $5,498,758.58. Following the completion of the transaction, the president owned 342,655 shares in the company, valued at $164,399,015.90. This represents a 3.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 90,024 shares of company stock worth $40,424,241. 3.32% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of CRWD. Laurel Wealth Advisors LLC raised its holdings in CrowdStrike by 54,635.9% during the second quarter. Laurel Wealth Advisors LLC now owns 4,293,484 shares of the company's stock valued at $2,186,714,000 after buying an additional 4,285,640 shares in the last quarter. Norges Bank bought a new stake in shares of CrowdStrike during the 4th quarter worth about $1,699,545,000. Vestor Capital LLC increased its holdings in shares of CrowdStrike by 269,840.3% during the 2nd quarter. Vestor Capital LLC now owns 977,184 shares of the company's stock valued at $497,690,000 after acquiring an additional 976,822 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in shares of CrowdStrike by 310.0% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 872,491 shares of the company's stock valued at $408,989,000 after acquiring an additional 659,705 shares in the last quarter. Finally, Vanguard Group Inc. raised its stake in shares of CrowdStrike by 2.6% in the 2nd quarter. Vanguard Group Inc. now owns 23,430,572 shares of the company's stock valued at $11,933,425,000 after acquiring an additional 596,007 shares in the last quarter. Institutional investors own 71.16% of the company's stock.

About CrowdStrike

CrowdStrike Holdings, Inc NASDAQ: CRWD is a cybersecurity company founded in 2011 and headquartered in Sunnyvale, California. The firm was co-founded by George Kurtz and Dmitri Alperovitch and became a publicly traded company following its initial public offering in 2019. CrowdStrike positions itself as a provider of cloud-native security solutions designed to protect endpoints, cloud workloads, identities and data against sophisticated cyber threats.

The company's core offering is the CrowdStrike Falcon platform, a modular, cloud-delivered security architecture that combines endpoint protection (EPP), endpoint detection and response (EDR), threat intelligence, and device control through lightweight agents and centralized telemetry.

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