CrowdStrike (NASDAQ:CRWD) Trading Down 5.2% - Here's Why

Key Points

• CrowdStrike shares fell about 5.2% intraday to $444.62, with volume of ~5.2 million shares—an 86% increase versus average trading volume.
• Analysts maintain a consensus "Moderate Buy" (31 Buys, 17 Holds, 2 Sells) with an average price target of $555.21, and several firms have recently raised targets as high as $630.
• The company beat the quarter (EPS $0.96 vs. $0.94; revenue $1.23B, +21.8% YoY) but remains unprofitable on margins and P/E, and insiders have sold shares recently (69,048 shares over 90 days; insiders own 3.32%).

CrowdStrike (NASDAQ:CRWD - Get Free Report) shares were down 5.2% on Thursday . The stock traded as low as $431.39 and last traded at $444.62. Approximately 5,215,899 shares traded hands during mid-day trading, an increase of 86% from the average daily volume of 2,807,959 shares. The stock had previously closed at $469.19.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on CRWD. The Goldman Sachs Group boosted their price objective on shares of CrowdStrike from $535.00 to $564.00 and gave the company a "buy" rating in a report on Wednesday, December 3rd. Stephens reaffirmed an "overweight" rating and issued a $590.00 price objective on shares of CrowdStrike in a research note on Thursday, December 18th. Mizuho set a $540.00 target price on shares of CrowdStrike in a research report on Thursday, January 8th. Berenberg Bank set a $600.00 price target on CrowdStrike and gave the company a "buy" rating in a research note on Friday, January 9th. Finally, Rosenblatt Securities reissued a "buy" rating and issued a $630.00 price objective on shares of CrowdStrike in a research note on Wednesday, December 3rd. Thirty-one investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $555.21.

CrowdStrike Stock Down 5.2%

The stock has a fifty day moving average of $482.16 and a 200 day moving average of $477.76. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.81 and a quick ratio of 1.81. The firm has a market capitalization of $112.09 billion, a P/E ratio of -352.87, a price-to-earnings-growth ratio of 115.72 and a beta of 1.03.

CrowdStrike (NASDAQ:CRWD - Get Free Report) last released its earnings results on Wednesday, December 3rd. The company reported $0.96 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.94 by $0.02. CrowdStrike had a negative return on equity of 2.12% and a negative net margin of 6.88%.The business had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same period last year, the business posted $0.93 earnings per share. The business's revenue for the quarter was up 21.8% on a year-over-year basis. On average, research analysts anticipate that CrowdStrike will post 0.55 EPS for the current fiscal year.

Insider Activity

In other CrowdStrike news, CFO Burt W. Podbere sold 10,516 shares of the company's stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $483.33, for a total transaction of $5,082,698.28. Following the transaction, the chief financial officer owned 179,114 shares in the company, valued at approximately $86,571,169.62. This represents a 5.55% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Anurag Saha sold 836 shares of CrowdStrike stock in a transaction dated Wednesday, December 24th. The shares were sold at an average price of $476.83, for a total transaction of $398,629.88. Following the transaction, the chief accounting officer directly owned 43,726 shares of the company's stock, valued at approximately $20,849,868.58. This trade represents a 1.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 69,048 shares of company stock valued at $34,509,857. 3.32% of the stock is owned by insiders.

Institutional Investors Weigh In On CrowdStrike

A number of large investors have recently added to or reduced their stakes in CRWD. Eagle Wealth Advisors LLC purchased a new position in shares of CrowdStrike during the 4th quarter valued at about $303,000. RMR Wealth Builders boosted its holdings in shares of CrowdStrike by 4.8% in the 4th quarter. RMR Wealth Builders now owns 9,413 shares of the company's stock worth $4,412,000 after purchasing an additional 428 shares during the period. Anchyra Partners LLC bought a new stake in shares of CrowdStrike in the 4th quarter worth about $235,000. Aprio Wealth Management LLC lifted its stake in shares of CrowdStrike by 19.4% during the 4th quarter. Aprio Wealth Management LLC now owns 1,486 shares of the company's stock worth $697,000 after acquiring an additional 241 shares during the last quarter. Finally, S.A. Mason LLC lifted its holdings in CrowdStrike by 54.5% during the 4th quarter. S.A. Mason LLC now owns 2,834 shares of the company's stock valued at $1,328,000 after buying an additional 1,000 shares in the last quarter. Institutional investors own 71.16% of the company's stock.

CrowdStrike Company Profile

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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