CrowdStrike (NASDAQ:CRWD) Trading Down 2.9% - Should You Sell?

Key Points

• CrowdStrike's stock fell by 2.9% to $411.58 on Tuesday, with trading volume dropping significantly to 1.25 million shares.
• Wall Street analysts maintain a bullish stance on CrowdStrike, with 24 ratings as "Buy" and an average price target of $460.10.
• The company reported a quarterly earnings per share of $0.93, exceeding expectations, and projected FY 2026 guidance of 3.600-3.72 EPS.

CrowdStrike (NASDAQ:CRWD - Get Free Report)'s stock price dropped 2.9% during trading on Tuesday . The stock traded as low as $409.68 and last traded at $411.58. Approximately 1,249,089 shares changed hands during trading, a decline of 66% from the average daily volume of 3,723,105 shares. The stock had previously closed at $423.70.

Wall Street Analysts Forecast Growth

A number of research firms have commented on CRWD. Truist Financial reiterated a "buy" rating and set a $500.00 target price (up from $450.00) on shares of CrowdStrike in a research report on Wednesday, June 4th. BTIG Research dropped their target price on CrowdStrike from $520.00 to $489.00 and set a "buy" rating for the company in a research note on Thursday, August 28th. DZ Bank raised shares of CrowdStrike from a "strong sell" rating to a "hold" rating in a research note on Thursday, August 28th. Bank of America reaffirmed a "neutral" rating and issued a $470.00 price objective (up from $420.00) on shares of CrowdStrike in a research note on Wednesday, June 4th. Finally, New Street Research set a $460.00 price objective on CrowdStrike in a research report on Thursday, August 28th. Twenty-four investment analysts have rated the stock with a Buy rating and nineteen have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $460.10.

CrowdStrike Price Performance

The business has a fifty day moving average price of $460.11 and a 200 day moving average price of $427.09. The company has a market capitalization of $102.63 billion, a price-to-earnings ratio of -346.26 and a beta of 1.12. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.88 and a quick ratio of 1.88.

CrowdStrike (NASDAQ:CRWD - Get Free Report) last released its quarterly earnings results on Wednesday, August 27th. The company reported $0.93 EPS for the quarter, topping analysts' consensus estimates of $0.83 by $0.10. The company had revenue of $1.17 billion for 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%. CrowdStrike's revenue was up 21.4% on a year-over-year basis. During the same period in the previous year, the firm earned $1.04 EPS. CrowdStrike has set its FY 2026 guidance at 3.600-3.72 EPS. Q3 2026 guidance at 0.930-0.95 EPS. On average, research analysts expect that CrowdStrike will post 0.55 earnings per share for the current fiscal year.

Insider Activity at CrowdStrike

In related news, Director Roxanne S. Austin sold 15,000 shares of the business's stock in a transaction that occurred on Wednesday, June 25th. The shares were sold at an average price of $497.67, for a total value of $7,465,050.00. Following the sale, the director directly owned 18,858 shares in the company, valued at $9,385,060.86. The trade was a 44.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO George Kurtz sold 42,267 shares of the business's stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $450.47, for a total value of $19,040,015.49. Following the sale, the chief executive officer directly owned 2,132,887 shares in the company, valued at $960,801,606.89. This trade represents a 1.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 188,164 shares of company stock worth $88,876,050. Company insiders own 3.32% of the company's stock.

Hedge Funds Weigh In On CrowdStrike

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CRWD. Blue Trust Inc. lifted its stake in CrowdStrike by 20.4% in the 1st quarter. Blue Trust Inc. now owns 1,267 shares of the company's stock worth $447,000 after acquiring an additional 215 shares in the last quarter. OLD National Bancorp IN purchased a new stake in shares of CrowdStrike in the first quarter worth approximately $248,000. Bessemer Group Inc. grew its position in CrowdStrike by 4.6% during the first quarter. Bessemer Group Inc. now owns 2,221 shares of the company's stock valued at $783,000 after purchasing an additional 98 shares in the last quarter. CX Institutional acquired a new position in CrowdStrike in the 1st quarter valued at approximately $175,000. Finally, Ritholtz Wealth Management increased its stake in CrowdStrike by 23.8% in the 1st quarter. Ritholtz Wealth Management now owns 3,824 shares of the company's stock valued at $1,348,000 after buying an additional 736 shares during the period. Institutional investors and hedge funds 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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