CrowdStrike (NASDAQ:CRWD) Trading Down 1.9% - Here's Why

Key Points

• CrowdStrike's stock experienced a decline of 1.9%, trading down to approximately $493 after closing at $502.55, with an increased trading volume of nearly 3.83 million shares.
• Several analysts have made rating adjustments for CrowdStrike, with Morgan Stanley raising its price target to $475, while Roth Capital increased its target to $510, indicating a generally positive outlook.
• Despite the recent drop in stock price, CrowdStrike reported strong quarterly earnings of $0.93 EPS, surpassing estimates, along with a revenue increase of 21.4% year-over-year to $1.17 billion.

CrowdStrike (NASDAQ:CRWD - Get Free Report) was down 1.9% during trading on Monday . The stock traded as low as $486.33 and last traded at $493.14. Approximately 3,827,918 shares were traded during trading, an increase of 3% from the average daily volume of 3,730,143 shares. The stock had previously closed at $502.55.

Analyst Ratings Changes

Several analysts have recently weighed in on CRWD shares. Morgan Stanley boosted their price objective on shares of CrowdStrike from $460.00 to $475.00 and gave the stock an "equal weight" rating in a research report on Thursday. Roth Capital reiterated a "buy" rating and issued a $510.00 price target (up previously from $410.00) on shares of CrowdStrike in a research report on Thursday. Cantor Fitzgerald upped their price target on shares of CrowdStrike from $475.00 to $500.00 and gave the company an "overweight" rating in a research report on Thursday. Sanford C. Bernstein reduced their price target on shares of CrowdStrike from $371.00 to $343.00 and set a "market perform" rating for the company in a research report on Thursday, August 28th. Finally, DZ Bank upgraded shares of CrowdStrike from a "strong sell" rating to a "hold" rating in a research report on Thursday, August 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating and nineteen have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $476.41.

CrowdStrike Stock Performance

The company has a current ratio of 1.88, a quick ratio of 1.88 and a debt-to-equity ratio of 0.20. The firm has a market capitalization of $123.76 billion, a price-to-earnings ratio of -414.40, a PEG ratio of 120.33 and a beta of 1.12. The stock's 50 day moving average price is $442.94 and its two-hundred day moving average price is $430.74.

CrowdStrike (NASDAQ:CRWD - Get Free Report) last posted its quarterly earnings results on Wednesday, August 27th. The company reported $0.93 earnings per share for the quarter, topping analysts' consensus estimates of $0.83 by $0.10. CrowdStrike had a negative net margin of 6.84% and a negative return on equity of 1.53%. The business had revenue of $1.17 billion for the quarter, compared to analysts' expectations of $1.15 billion. During the same period in the prior year, the company posted $1.04 EPS. The business's revenue for the quarter was up 21.4% on a year-over-year basis. CrowdStrike has set its FY 2026 guidance at 3.600-3.72 EPS. Q3 2026 guidance at 0.930-0.95 EPS. On average, analysts forecast that CrowdStrike will post 0.55 EPS for the current year.

Insider Buying and Selling

In other news, Director Sameer K. Gandhi sold 6,250 shares of the stock in a transaction dated Thursday, September 4th. The shares were sold at an average price of $410.32, for a total transaction of $2,564,500.00. Following the transaction, the director directly owned 768,511 shares in the company, valued at $315,335,433.52. This represents a 0.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Roxanne S. Austin sold 15,000 shares of the stock in a transaction that occurred on Wednesday, June 25th. The shares were sold at an average price of $497.67, for a total transaction of $7,465,050.00. Following the completion of the sale, the director directly owned 18,858 shares of the company's stock, valued at $9,385,060.86. This trade represents a 44.30% decrease in their position. The disclosure for this sale can be found here. Insiders sold 101,741 shares of company stock worth $47,456,437 in the last 90 days. 3.32% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On CrowdStrike

Several large investors have recently added to or reduced their stakes in the company. Caldwell Trust Co bought a new position in CrowdStrike during the second quarter worth $115,000. Watts Gwilliam & Co. LLC increased its stake in CrowdStrike by 55.7% in the 2nd quarter. Watts Gwilliam & Co. LLC now owns 9,230 shares of the company's stock worth $4,639,000 after purchasing an additional 3,303 shares in the last quarter. Valeo Financial Advisors LLC increased its stake in CrowdStrike by 6.3% in the 2nd quarter. Valeo Financial Advisors LLC now owns 10,476 shares of the company's stock worth $5,336,000 after purchasing an additional 618 shares in the last quarter. SevenBridge Financial Group LLC grew its stake in CrowdStrike by 51.5% during the 2nd quarter. SevenBridge Financial Group LLC now owns 6,258 shares of the company's stock valued at $3,187,000 after acquiring an additional 2,128 shares in the last quarter. Finally, PVG Asset Management Corp purchased a new position in CrowdStrike during the 2nd quarter valued at about $238,000. 71.16% of the stock is currently owned by institutional investors.

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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