CrowdStrike (NASDAQ:CRWD) Trading Down 2.7% After Analyst Downgrade

Key Points

• CrowdStrike's stock fell by 2.7% after Canaccord Genuity Group downgraded its price target from $475 to $430, maintaining a hold rating on the stock.
• Despite the downgrade, several research firms, including Cantor Fitzgerald and Oppenheimer, have set higher price targets on CrowdStrike, with an average target price of $456.80 among 44 analysts.
• Insider trading reports showed that Director Roxanne S. Austin and CEO George Kurtz significantly reduced their share holdings, with Austin's ownership decreasing by 44.30% after selling 15,000 shares.

CrowdStrike (NASDAQ:CRWD - Get Free Report) shares dropped 2.7% during mid-day trading on Friday after Canaccord Genuity Group lowered their price target on the stock from $475.00 to $430.00. Canaccord Genuity Group currently has a hold rating on the stock. CrowdStrike traded as low as $428.44 and last traded at $429.89. Approximately 1,630,578 shares changed hands during mid-day trading, a decline of 56% from the average daily volume of 3,714,078 shares. The stock had previously closed at $442.00.

Several other research firms have also recently issued reports on CRWD. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $475.00 price target on shares of CrowdStrike in a research note on Tuesday. Rosenblatt Securities cut their price objective on shares of CrowdStrike from $515.00 to $490.00 and set a "buy" rating on the stock in a report on Thursday. Oppenheimer reiterated an "outperform" rating and set a $520.00 price objective on shares of CrowdStrike in a report on Thursday. Roth Capital raised their price target on shares of CrowdStrike from $410.00 to $420.00 and gave the company a "buy" rating in a report on Wednesday, June 4th. Finally, Jefferies Financial Group cut their price target on shares of CrowdStrike from $530.00 to $500.00 and set a "buy" rating on the stock in a report on Thursday. Twenty-five research analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $456.80.

Insider Activity at CrowdStrike

In other news, Director Roxanne S. Austin sold 15,000 shares of the business's stock in a transaction 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 transaction, the director owned 18,858 shares of the company's stock, valued at approximately $9,385,060.86. The trade was a 44.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO George Kurtz sold 42,267 shares of the company's stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $450.47, for a total transaction of $19,040,015.49. Following the completion of the sale, the chief executive officer directly owned 2,132,887 shares of the company's stock, valued at $960,801,606.89. The trade was a 1.94% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 204,414 shares of company stock valued at $96,794,738. Company insiders own 3.32% of the company's stock.

Institutional Investors Weigh In On CrowdStrike

Hedge funds and other institutional investors have recently bought and sold shares of the business. Laurel Wealth Advisors LLC grew its stake in CrowdStrike by 54,635.9% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 4,293,484 shares of the company's stock valued at $2,186,714,000 after acquiring an additional 4,285,640 shares in the last quarter. Norges Bank acquired a new position in CrowdStrike in the 2nd quarter valued at approximately $1,638,365,000. Nuveen LLC purchased a new stake in CrowdStrike in the 1st quarter worth approximately $595,766,000. 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 valued at $2,314,785,000 after buying an additional 1,144,295 shares during the period. Finally, GAMMA Investing LLC grew its stake in CrowdStrike by 50,536.2% in the first quarter. GAMMA Investing LLC now owns 1,086,652 shares of the company's stock valued at $383,132,000 after purchasing an additional 1,084,506 shares in the last quarter. 71.16% of the stock is currently owned by institutional investors.

CrowdStrike Price Performance

The company has a market capitalization of $107.36 billion, a PE ratio of -360.86 and a beta of 1.13. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.85 and a current ratio of 1.85. The stock has a 50 day moving average price of $462.52 and a two-hundred day moving average price of $427.58.

CrowdStrike (NASDAQ:CRWD - Get Free Report) last released its quarterly earnings data on Wednesday, August 27th. The company reported $0.93 EPS for the quarter, topping analysts' consensus estimates of $0.83 by $0.10. The firm had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.15 billion. CrowdStrike had a negative return on equity of 1.58% and a negative net margin of 6.84%.The firm's revenue was up 21.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $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. Equities analysts forecast that CrowdStrike will post 0.55 earnings per share for the current year.

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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