CrowdStrike Holdings, Inc. (CRWD) Stock: Why It’s Declining In Value

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CrowdStrike Holdings, Inc. (CRWD) is trending down in the market today. The company, one that is focused in the technology industry, is currently priced at $53.46 after falling -8.30% so far today. In terms of technology companies, there are quite a few aspects that have the ability to generate declines in the market. News is one of the most common reasons for movement. Here are the most recent trending headlines surrounding CRWD:

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Sep-27-19 06:05AM Crowdstrike Doesnt Know Why Trump Mentioned Them to the Ukrainian President
Sep-26-19 10:27AM CrowdStrike CEO says company is nonpartisan, issues 2020 warning
07:00AM Trump mentioned CrowdStrike to Ukrainian president, and CrowdStrike doesnt seem to know why
Sep-25-19 06:32PM Crowdstrike CEO Stands by 2016 Work With FBI on DNC Probe
05:34PM Trump asked Ukraine to investigate Silicon Valley cybersecurity unicorn

Nonetheless, any time investors are making a decision with regard to investing, investors should look at far more than news, this is especially the case in the ever changing tech industry. Here’s what’s happening with CrowdStrike Holdings, Inc..

Performance Trends That We’ve Seen From CRWD

Although a decline in a single session, like what we’re seeing from CrowdStrike Holdings, Inc. may cause fear in some investors, a single session move by itself should not be the basis of a decision to, or not to, invest in a stock. It is generally smart to take a look at trends further out than a single trading session. As it relates to CRWD, below are the returns on investment that we’ve seen:

  • Weekly – In the past 5 trading sessions, CRWD has produced a change in value that amounts to -20.17%.
  • Past 30 Days – The return on investment from CrowdStrike Holdings, Inc. in the last month works out to -38.54%.
  • Past Quarter – Over the past 3 months, the stock has produced a return on investment that comes to -21.72%
  • Bi-Annually – In the previous 6 months, we have seen a performance of 0 from the stock.
  • Year To Date – Since the close of last year CRWD has generated a return on investment of -7.83%.
  • Full Year – Lastly, throughout the last year, we have seen performance that works out to 0 from CRWD. Over this period of time, the stock has traded at a high price of -47.53% and a low price of -4.54%.

Ratios Worth Paying Attention To

Digging into various ratios associated with a company generally gives prospective traders a look of how risky and/or rewarding a pick might be. Below are some of the key ratios to look at when looking at CRWD.

Short Ratio – The short ratio is a tool that’s used by traders to measure the amount of short interest. As the short ratio heads up, it means that more investors are expecting that the stock is headed for declines. Across the sector, strong tech stocks tend to come with a lower short ratio. On the other hand, we also see quite a few short squeezes in the industry. Nonetheless, as it relates to CrowdStrike Holdings, Inc., the stock’s short ratio comes to 1.11.

Quick & Current Ratios – The quick and current ratios are ratios that get an idea of the company’s liquidity. Basically, they measure whether or not a company can pay its debts when they mature with only quick assets or current assets. In the technology industry, several companies are heavily reliant on continued investor support as they work to bring new technologies to market, the quick and current ratios can be damning. Nonetheless, several gems in the technology industry come with great current and quick ratios. As it relates to CRWD, the quick and current ratios come to 2.90 and 2.90 respectively.  

Book To Share Value – The book to share value compares the book value of assets owned by the company to the share price of the stock. In this particular case, that ratio is 5.60.

Cash To Share Value – Finally, the cash to share value ratio compares the total cash on hand to the price of shares. In this case, the cash to share value is 3.56.

Big Money And CrowdStrike Holdings, Inc.

One thing that I’ve learned in my short time on Earth is that smart money tends to follow big money investors. In general, investors that are trying to keep the risk down will keep an eye on investments made by institutional investors as well as those on the inside. With that said, how does the big money flow as it relates to CRWD? Here’s what’s going on:

Institutions own 82.20% of the company. Institutional interest has moved by 9.77% over the past three months. When it comes to insiders, those who are close to the company currently own 0 percent of CRWD shares. Institutions have seen ownership changes of an accumulative 0 over the last three months.

How Analysts Feel About CrowdStrike Holdings, Inc.

Although it’s not a smart idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a good idea to use their thoughts to validate your own opinions before making investment decisions in the technology industry. Here are the recent moves that we’ve seen from analysts as it relates to CRWD.

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Sep-26-19 Initiated Robert W. Baird Neutral $75
Aug-13-19 Reiterated BofA/Merrill Buy $89 → $103
Jul-19-19 Reiterated Needham Buy $80 → $92
Jul-19-19 Reiterated Barclays Overweight $80 → $94
Jul-08-19 Initiated SunTrust Hold $69

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.38. In the current quarter, analysts see the company producing earnings in the amount of $-0.12. Over the last 5 years, CRWD has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of -138.60% and revenue has seen movement of 94.10%.

How Many Shares Of CRWD Are Available?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 232.56M shares of CrowdStrike Holdings, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, CRWD has a float of 20.70M.

I also like to dig into the short percentage of the float. Think about it, when a high portion of the float is shorted, the overall feeling among investors is that the company is going to lose value. In regard to CRWD, the percentage of the float that is currently being sold short sits at 14.42%. In general, concerning short percent of the float is any percentage over 40%. In my research, I’ve found that any short ratio over 26% is generally a play that comes with hefty risk.

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