We have detected what we think to be dark pool buy orders in CRWD stock on January 3, 2020.
We believe that both of these dark pool prints are buy orders because of how CRWD stock immediately rose after the prints.
Another clue that the dark pool activity was bullish comes from examining the options flow on January 3, 2020, as options trades are often placed that front-run the dark pool orders. There was bullish options flow in CRWD stock.
A whopping 16,361 calls traded, 5x expected, and implied vol increased over 3 points to 57.33%. The yellow color indicates that this single block or sweep trade exceeded the entire day’s open interest. Notice the above the ask (AA) sweep. This is extremely bullish as it indicates that someone just wanted these call options as quickly as possible and didn’t mind paying above the asking price for that fast execution!
The expectation that Iran will retaliate against the assasination of its top General is the catalyst that could be driving this cybersecurity stock higher but the company has more going for it than just Iran fears.
On December 30, 2019, Needham analyst Alex Henderson keeps his Buy rating and $92 price target on Crowdstrike (CRWD) and added the stock to the Needham Conviction List. Alex calls it his “Single Best Idea in Security” heading into 2020. The analyst writes that the company’s “technology, platform and efficacy” combine to create “one of the core platforms in Security” regardless of its customer strategy. Henderson adds that Crowdstrike offers the “right technology” to improve security for either legacy perimeter defense or for “emerging, zero-trust” cloud-direct security.
On December 12, 2019, CrowdStrike Inc. (Nasdaq: CRWD), a leader in cloud-delivered endpoint protection, announced that leading managed security service provider ElevenPaths, Telefónica’s Cybersecurity Unit, has joined the CrowdStrike Elevate Partner Program. Through this partnership, ElevenPaths will offer its customers worldwide the industry-leading CrowdStrike Falcon® platform for comprehensive, real-time endpoint protection and increase CrowdStrike’s reach and distribution across the U.S., Europe, Middle East and Latin America.
Through the Elevate Partner Program, ElevenPaths, will add the CrowdStrike Falcon platform to its cybersecurity offerings to bring customers the first cloud-native endpoint protection platform, all delivered via a single lightweight agent.
The Falcon platform, powered by artificial intelligence (AI), unifies next-generation antivirus (NGAV), IT hygiene, endpoint detection and response (EDR), cyber threat intelligence, and proactive threat hunting for customers around the globe. The solution enables reliable prevention, detection, response and mitigation to threats, including sophisticated malware-free intrusions so that customers can spot and stop breaches quickly.
“Improving threat detection and response is a high priority at any organization,” said Rames Sarwat, ElevenPaths vice president, Strategic Alliances. “Therefore, it is critical that we continue to innovate and offer our customers the best and most effective cybersecurity solutions available on the market, which is why we are excited to be offering CrowdStrike’s market-leading endpoint protection platform.”
ElevenPaths’ partnership with CrowdStrike illustrates that CrowdStrike is a leading choice for endpoint security, bringing together two industry leaders to deliver ground-breaking technology to the global market, especially to the U.S., Europe, Middle East, and Latin America. The partnership will allow CrowdStrike technology to be delivered through existing outsourcing contracts in ElevenPaths’ vast customer network, simplifying the procurement process for joint customers.
“We are proud to partner with ElevenPaths, bringing the power of our Falcon platform to its hundreds of thousands of customers,” said Matthew Polly, vice president, Channel and Alliances, CrowdStrike. “ElevenPaths has a proud history of offering the best solutions to their SMB and large account customers. With many businesses around the world actively looking to replace legacy AV solutions, ElevenPaths’ customers now have access to trusted and proven next-gen endpoint protection that is easily deployed, shows immediate time to value, and allows them to confidently stop breaches.”
On December 10, 2019, Piper Jaffray analyst Rob Owens assumed coverage of Crowdstrike with an Overweight rating and $70 price target. CrowdStrike is transforming endpoint security with a “powerful cloud model and high growth story,” Owens tells investors in a research note. He believes the company is successfully disrupting the endpoint segment, and has an opportunity to do the same in other adjacent security markets.
On December 6, 2019, Stifel analyst Gur Talpaz said CrowdStrike delivered “another clean beat” in Q3 across all major financial metrics and he believes the company’s report “has put to bed unsubstantiated fears surrounding heightened competitive pressures and various conspiracy theories.” In a note partially titled “Mic Drop: CrowdStrike Silences the Haters,” Talpaz added that he believes CrowdStrike’s cloud-centric approach to endpoint and device security is increasingly resonating with customers and he continues to see the company having “a significant cloud-defined moat that other vendors are ill-equipped to compete against.” Talpaz maintains his Buy rating and $90 price target on CrowdStrike shares.
Also on December 6, 2019, Mizuho analyst Gregg Moskowitz says CrowdStrike Holdings reported another “spectacular quarter.” Despite a high fundamental bar heading into the print, the company surpassed expectations as total annual recurring revenue growth of 97% year-over-year easily beat the Street’s 85% estimate, Moskowitz tells investors in a research note. The analyst continues to believe the stock will likely show a strong rebound over the next several months. He keeps a Buy rating on Crowdstrike with a $77 price target. Barclays analyst Saket Kalia raised his price target for CrowdStrike Holdings to $77 from $75 saying the company’s annual recurring revenue beat and guidance raise “speak for themselves.” The analyst keeps an Overweight rating on the shares.
The financial report that these analysts are referring to is the company’s Q3 report released on December 5, 2019, after market close. Crowdstrike reported Q3 adjusted EPS of (7c) versus the consensus estimate of (11c). The company reported Q3 revenue of $125.1M versus the consensus estimate of $118.79M.
“Third quarter results well exceeded our expectations and CrowdStrike delivered the best quarter yet in company history with strength in multiple areas of the business including 98% subscription revenue growth and record net new ARR. We achieved two significant milestones as ARR grew 97% year-over-year to exceed half a billion dollars and we generated positive cash flow in the quarter,” said George Kurtz, CrowdStrike’s co-founder and chief executive officer. “Strong demand among organizations across diverse sizes and industries and our frictionless go-to-market engine drove our rapid growth at scale, which we believe continues to demonstrate our growing leadership in the Security Cloud category and ongoing growth potential,” concluded Kurtz.