Investment Update: CRWD
Date: 2025-12-08 Event Type: News
Executive Summary
CrowdStrike (CRWD) is experiencing increased investor attention, as evidenced by heightened search activity on platforms like Zacks.com. Additionally, institutional ownership is increasing, with California Public Employees Retirement System and Cary Street Partners Financial LLC both increasing their holdings in CRWD during recent quarters.
Key Takeaways
- Point 1: Increased investor interest, as indicated by rising searches on Zacks.com, suggests growing awareness and potential demand for CRWD stock. This could be driven by positive sentiment or increased focus on cybersecurity.
- Point 2: California Public Employees Retirement System (CalPERS) increased its CRWD holdings by 12.4%, adding 43,686 shares. This large institutional investment signals confidence in CrowdStrike's long-term prospects and potential for future growth. Their total holding is now $201.94 million.
- Point 3: Cary Street Partners Financial LLC increased its CRWD holdings by 23.0%, adding 1,816 shares. While a smaller increase than CalPERS, it also reflects growing institutional confidence. Their total holding is $4.95 million.
Thesis Impact
- Status: Strengthened
- Reasoning: The news strengthens the investment thesis for CrowdStrike. Increased investor attention, particularly from large institutional investors like CalPERS and Cary Street Partners, indicates a positive outlook for the company. Institutional investment provides stability and often signals belief in long-term growth potential. The increased search activity implies a growing awareness and interest in CrowdStrike, possibly due to its strong performance in the cybersecurity sector. The cybersecurity sector continues to benefit from secular tailwinds as companies prioritize security in an increasingly dangerous online environment.
Valuation Update
- Previous Fair Value: $350
- New Fair Value: $375
- Current Price: $340
Action Plan
- Decision: Buy
- Rationale: Given the positive news of increased institutional investment and heightened investor interest, combined with a current price below our updated fair value, a "Buy" rating is warranted. The increased institutional investment signals confidence in the company's long-term prospects, while the increased search activity suggests growing market awareness. The cybersecurity sector remains a strong area for growth, and CrowdStrike is well-positioned to capitalize on this trend. The update to the fair value reflects the increased confidence implied by the news.