SUNNYVALE, CA—Henry Shawn, Chief Security Officer of CrowdStrike Holdings, Inc. (NASDAQ:CRWD), has recently sold shares in the company, according to a filing with the Securities and Exchange Commission. On December 16, Shawn sold a total of 4,500 shares of Class A common stock, generating proceeds of approximately $1.66 million. The transactions were executed at prices ranging from $366.22 to $369.38 per share. The sale comes as CrowdStrike, now valued at over $95 billion, trades near its 52-week high of $398.33, having delivered a remarkable 52% return year-to-date. According to InvestingPro analysis, the company currently appears overvalued relative to its Fair Value.
Following these sales, Shawn holds 115,798 shares of CrowdStrike stock. The sales were made under a pre-established 10b5-1 trading plan adopted on December 20, 2023, which allows company insiders to set up a predetermined plan for selling stocks. InvestingPro subscribers can access 14 additional key insights about CrowdStrike, including detailed analysis of the company's financial health, which currently rates as "GREAT" with a score of 3.04 out of 5.
In other recent news, cybersecurity firm CrowdStrike Holdings announced a significant shift in its stock structure, converting all outstanding Class B shares into Class A shares. This change, triggered by Class B shares falling below 5% of the total combined outstanding shares, resulted in the retirement of the Class B Common Stock. The conversion has altered the voting power of shareholders, with all shares now carrying one vote per share.
In terms of financial performance, CrowdStrike showcased a strong third-quarter with a 27% growth in Annual Recurring Revenue (ARR) and a 29% increase in revenue. These results led to several analyst firms adjusting their price targets for the cybersecurity company. Mizuho (NYSE:MFG) Securities maintained an Outperform rating, raising the firm's price target to $385. KeyBanc reiterated an Overweight rating with a $395 target, while TD Cowen reaffirmed a Buy rating with a $380 target.
Despite a successful quarter, some concerns have been raised over a decline in new ARR and a contraction in Free Cash Flow margins. Nevertheless, CrowdStrike's management aims to accelerate net new ARR in the second half of fiscal year 2026 and has set a goal to reach $10 billion in ARR by fiscal year 2031. These recent developments highlight CrowdStrike's resilience and potential for growth, despite facing certain challenges.
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