CrowdStrike, a leading cybersecurity company, has been making headlines recently due to its impressive Q3 earnings report. However, despite beating quarterly estimates with $0.96 EPS and $1.23B revenue (+21.8% y/y), the stock is trading down due to valuation concerns. This has led to a decrease in the company’s stake by 3.0% in the third quarter, with Asset Management One Co. Ltd. selling 4,122 shares and leaving it with 131,615 shares.
## Insider Selling and Valuation Concerns
Recent insider selling has also been a point of concern for investors. President Michael Sentonas sold 11,461 shares (~$5.5M) and CEO George Kurtz sold 17,550 shares (~$8.45M) on Dec. 22, while insiders have offloaded 98,395 shares (~$49.6M) over the last 90 days. Despite this, insiders still own 3.32% of the stock.
## Market Sentiment and Analysts’ Views
Market sentiment remains divided, with some analysts flagging CrowdStrike as a top cybersecurity pick due to its cloud-native Falcon platform and the convergence of identity and endpoint security. However, others have expressed concerns about decelerating growth and a premium valuation. As a result, the stock has been experiencing a pullback, driven by valuation concerns, decelerating growth expectations, and tactical traders trimming exposure.
## Conclusion
Despite its strong Q3 earnings report, CrowdStrike’s valuation concerns and decelerating growth expectations continue to weigh on the stock. While the company remains a leader in the cybersecurity space, investors may want to exercise caution when considering a trade into 2026. As the market continues to evolve, it will be essential to monitor CrowdStrike’s progress and adjust expectations accordingly.
Institutional investors and hedge funds own 71.16% of the company’s stock, and the stock’s 50 day moving average price is $509.99. The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.81, and a current ratio of 1.81. The stock’s 52 week low is $298.00, and its 52 week high is $566.90. The stock has a market capitalization of $114.35 billion, a price-to-earnings ratio of -359.98, a PEG ratio of 109.10, and a beta of 1.03. CrowdStrike has set its FY 2026 guidance at 3.700-3.720 EPS and its Q4 2026 guidance at 1.090-1.110 EPS. Analysts anticipate that CrowdStrike will post 0.55 earnings per share for the current fiscal year.
