SUNNYVALE, CA – Henry Shawn, chief security officer of CrowdStrike Holdings, Inc. (NASDAQ:), recently sold company stock, according to a filing with the Securities and Exchange Commission. On December 16, 2023, Shawn sold a total of 4,500 Class A shares, raising approximately $1.66 million. The transactions were conducted at prices between $366.22 and $369.38 per share. The sale comes at a time when CrowdStrike, now valued at over $95 billion, is trading near its 52-week high of $398.33 and has a significant year-to-date return of 52%. According to an analysis by InvestingPro, the company currently appears overvalued compared to its fair value.
After these sales, Shawn still holds 115,798 CrowdStrike shares. The sales are being made pursuant to a pre-determined 10b5-1 trading plan adopted on December 20, 2023, which allows company insiders to establish a predetermined plan for share sales. InvestingPro subscribers have access to 14 other key insights about CrowdStrike, including a detailed analysis of the company's financial health, which is currently rated “GREAT” with a rating of 3.04 out of 5.
In other recent news, cybersecurity company CrowdStrike Holdings announced a significant change to its stock structure: all outstanding Class B shares have been converted to Class A shares. This change, triggered by the Class B shares falling below 5% of total shares outstanding, resulted in the discontinuance of the Class B common shares. The conversion has changed the distribution of voting rights, with all shares now carrying one vote per share.
In terms of business performance, CrowdStrike had a strong third quarter with Annual Recurring Revenue (ARR) growth of 27% and revenue up 29%. These results prompted several analyst firms to adjust their price targets for the cybersecurity company. Mizuho Securities gave it an Outperform rating and raised its price target to $385. KeyBanc reiterated an Overweight rating with a target of $395, while TD Cowen reiterated a Buy rating with a target of $380.
Despite the successful quarter, some concerns were raised about rejection of the new ARR and a reduction in free cash flow margins. Nevertheless, CrowdStrike management plans to accelerate net new ARR additions in the second half of fiscal 2026 and has set a goal of reaching $10 billion in ARR by fiscal 2031. These recent developments underscore CrowdStrike's resilience and growth potential, despite certain challenges.
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