CrowdStrike Holdings, Inc. (NASDAQ: CRWD) saw its shares rise by 1.5% during mid-day trading on November 3, 2023, following the release of a robust earnings report. The stock peaked at $525.00 before settling at $524.17, significantly above its previous close of $516.55. Trading volume was markedly higher, with 5,546,517 shares exchanged, representing a 62% increase from the average volume of 3,433,291 shares.
The company reported an earnings per share (EPS) of $0.96, exceeding analysts’ expectations of $0.94 by $0.02. This performance reflects a 21.8% increase in quarterly revenue, amounting to $1.23 billion, surpassing forecasts of $1.22 billion. In the same quarter of the previous year, CrowdStrike reported an EPS of $0.93.
CrowdStrike has also provided guidance for the fiscal year 2026, projecting an EPS of between $3.700 and $3.720 and for the fourth quarter of 2026, an EPS of $1.090 to $1.110.
Analyst Ratings Show Optimism
Analysts have reacted positively to CrowdStrike’s earnings report. 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 and rated the stock as “outperform.” Scotiabank also restated its “outperform” rating, while Roth Capital issued a “buy” rating with a revised target of $510.00, up from $410.00. Wedbush set an ambitious price target of $600.00.
The consensus rating for CrowdStrike currently stands at “Moderate Buy,” according to data from MarketBeat.com, with a consensus price target of $554.09. Overall, two analysts have assigned a “Strong Buy” rating, while thirty-one have rated it as “Buy,” sixteen as “Hold,” and two as “Sell.”
Insider Transactions and Institutional Investments
In recent insider activity, Director Sameer K. Gandhi sold 5,000 shares on November 3, 2023, at an average price of $550.20, totaling $2,751,000.00. Post-transaction, Gandhi retains 765,456 shares in the company, valued at approximately $421.15 million. Similarly, President Michael Sentonas sold 10,000 shares on October 10, 2023, for a total of $5,150,000.00, reducing his ownership by 2.75%.
Over the last 90 days, insiders have sold a total of 116,622 shares amounting to $58,561,456. Insider ownership now stands at 3.32% of the company’s stock.
Institutional investors have also made significant moves recently. Laurel Wealth Advisors LLC increased its stake by an astonishing 54,635.9% in the second quarter, acquiring 4,293,484 shares valued at $2.19 billion. Norges Bank purchased a new stake valued at $1.64 billion, while Nuveen LLC and Vestor Capital LLC also significantly boosted their positions in CrowdStrike.
Currently, institutional and hedge fund investors own 71.16% of CrowdStrike’s stock, indicating strong support from large financial entities.
CrowdStrike’s market capitalization now stands at $131.55 billion, with a price-to-earnings ratio of -440.48 and a P/E/G ratio of 118.84. The company has a current ratio of 1.88, a quick ratio of 1.88, and a debt-to-equity ratio of 0.20. Its 50-day moving average is $512.64, while the 200-day moving average is $478.46.
CrowdStrike Holdings, Inc. specializes in cybersecurity solutions, providing a unified platform for the protection of endpoints, cloud workloads, identities, and data both in the United States and internationally. Its services include managed security, IT operations management, identity protection, threat intelligence, and AI-powered workflow automation, among others.
As CrowdStrike continues to navigate the dynamic cybersecurity landscape, its recent earnings report and analyst outlook suggest a promising future for the company.
