Shares of CrowdStrike (NASDAQ: CRWD) experienced a notable increase of 1.5% during mid-day trading on Wednesday, following the release of a better-than-expected earnings report. The stock reached a high of $525.00 before settling at $524.17, with a total of 5,546,517 shares changing hands. This trading volume represents a 62% increase compared to the average session volume of 3,433,291 shares. The stock had previously closed at $516.55.
The cybersecurity firm reported earnings per share (EPS) of $0.96 for the quarter, surpassing the consensus estimate of $0.94 by $0.02. CrowdStrike’s revenue for the quarter amounted to $1.23 billion, exceeding analyst predictions of $1.22 billion. This figure reflects a 21.8% increase compared to the same quarter last year when the company reported an EPS of $0.93.
Analyst Ratings and Future Guidance
CrowdStrike has provided guidance for the fiscal year 2026, projecting an EPS range of $3.700 to $3.720, with a fourth quarter guidance of $1.090 to $1.110 EPS. Following the earnings report, several equities analysts adjusted their ratings on the stock.
Bank of America raised its price target from $470.00 to $535.00, maintaining a “neutral” rating. BMO Capital Markets increased its target from $500.00 to $555.00, issuing an “outperform” rating. Scotiabank also reiterated an “outperform” rating. Meanwhile, Roth Capital reissued a “buy” rating with a target price of $510.00, up from $410.00, while Wedbush set a price target of $600.00.
Overall, two analysts have rated CrowdStrike as a Strong Buy, 31 have given it a Buy rating, 16 have assigned a Hold rating, and two have marked it as a Sell. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” with an average target price of $554.09.
Insider Activity and Institutional Investment
In related news, CrowdStrike’s Director, Sameer K. Gandhi, sold 5,000 shares on November 3, 2023, at an average price of $550.20, totaling $2,751,000. Following this transaction, Gandhi holds 765,456 shares valued at approximately $421.15 million, a decrease in ownership of 0.65%. President Michael Sentonas also sold 10,000 shares on October 10, 2023, at an average price of $515.00, amounting to $5,150,000. Post-transaction, he retained 354,116 shares worth around $182.37 million, marking a 2.75% decrease in his ownership.
Over the past 90 days, company insiders have sold a total of 116,622 shares valued at $58.56 million. Insiders currently hold 3.32% of CrowdStrike’s stock.
Institutional ownership remains robust, with hedge funds and institutional investors owning 71.16% of the company’s shares. Notably, Laurel Wealth Advisors LLC significantly increased its holdings by 54,635.9% in the second quarter, now owning 4,293,484 shares valued at $2.19 billion. Norges Bank also entered a new position worth $1.64 billion during the same period.
Additional investments include Nuveen LLC, which acquired a new position valued at $595.77 million, and Vestor Capital LLC, which increased its stake by 269,840.3%, now holding 977,184 shares valued at $497.69 million.
CrowdStrike’s market capitalization stands at approximately $131.55 billion. The firm has a price-to-earnings (P/E) ratio of -440.48 and a P/E/G ratio of 118.84, with a beta of 1.09. Its current ratio and quick ratio are both 1.88, while the debt-to-equity ratio is 0.20. The stock’s 50-day moving average is $512.64, and its 200-day moving average is $478.46.
CrowdStrike Holdings, Inc. is recognized for its cybersecurity solutions, offering a range of services that include corporate endpoint security, cloud workload security, and managed security. The company operates both in the United States and internationally, providing vital protection for endpoints, cloud workloads, and data.
