Why CrowdStrike Holdings, Inc. (CRWD) Stock Crashed Nearly -3.19% Today

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the stocks that are grabbing investor focus today: sinking -3.19% or (-1.83 points) to $55.54 from its previous close of $57.37. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 659817 contracts so far this session. CRWD shares had a relatively better volume day versus average trading capacity of 2.66 million shares, but with a 20.7 million float and a 2.74% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for CRWD stock indicates that the average analyst price target is $81.65 per share. This means the stock has a potential increase of 47.01% from where the CRWD share price has been trading recently which is between $53.01 and $57.59. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $43. Flipping the other side of the coin, an analyst who is fully bullish set a price target as high as $109.

Looking at the current readings for CrowdStrike Holdings, Inc., the two-week RSI stands at 49.41. This figure suggests that CRWD stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current CRWD readings is similarly very revealing as it has a stochastic reading of 65.68% at this stage. This figure means that CRWD share price today is being neutral.

Technical chart claims that CrowdStrike Holdings, Inc. (CRWD) would settle between $58.97/share to $60.57/share level. However, if the stock price goes below the $54.39 mark, then the market for CrowdStrike Holdings, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $51.41 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.25. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at DA Davidson, assumed coverage of CRWD assigning Neutral rating, according to their opinion released on November 19. Goldman analysts bumped their rating on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stock from Sell to Neutral in a separate flash note issued to investors on November 12. Analysts at Nomura, made their first call for the equity with a Buy recommendation, according to a research note that dated back to October 23.

CRWD equity has an average rating of 2.42, with the figure leaning towards a bullish end. 18 analysts who tracked the company were contacted by Reuters. Amongst them, 6 rated the stock as a hold while the remaining 12 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 11 analysts rated CrowdStrike Holdings, Inc. (NASDAQ:CRWD) as a buy or a strong buy while 1 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, CRWD stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/E ratio is 0 while for the average stock in the same group, the multiple is 30. CrowdStrike Holdings, Inc. current P/B ratio of 17.8 means it is trading at a premium against its industry’s 9.5.