CrowdStrike Holdings (CRWD, Financial) CSO Security Chief Henry Shawn has sold 4,500 Class A common stock shares worth about $1.66 million. Costs between $366.22 and $369.38 per share were paid for the transactions on December 16. CrowdStrike trades near its 52-week high of $398.33 at a robust 52% gain year to date on the sale.
Shawn's sale was conducted through a prearranged 10b5-1 trading plan adopted on December 20, 2023, in which insiders are permitted to execute transactions according to a predetermined schedule. After the sale, Shawn will still own 115,798 shares of CrowdStrike stock.
On a related note, just last week, CrowdStrike finalized a stock structure refurbishment, converting remaining Class B shares into Class A shares. The conversion of Class B shares to common stock below 5% of the total combined outstanding shares has increased voting power: each share now carries one vote.
The cybersecurity firm's financial performance continued to be solid in the third quarter, with ARR climbing 27% year over year and revenue up 29%. Analysts were forced to turn bullish after these results. Mizuho Securities lifted its price target to $385 and kept the Outperform rating, as did KeyBanc, which raised its target to $395 and retained the Overweight rating. Meanwhile, TD Cowen also maintained a Buy rating on the shares with a $380 price target.
At around $95 billion, CrowdStrike is also under pressure to prove its valuation, and InvestingPro analysis shows CrowdStrike trading above the stock's Fair Value. Despite that, investors are confident that the country is enjoying strong financial health indicators and that the momentum for growth is still strong.
