The cybersecurity company increased its price from $ 200 to $ 275
The shares of Crowdstrike Holdings Inc (NASDAQ: CRWD) rose 3.6% to $ 203.33 this morning after the Cybersecurity name reported better-than-expected earnings of 13 cents per share – higher than analysts’ estimates – of eight cents per share – and an increase in revenue in the fourth quarter . The company attributed the results to healthy subscription and customer growth, as well as record operating and free cash flow. In response, the security earned at least six price hikes, including a high from Needham to $ 275 from $ 200.
Security has cooled from an all-time high of $ 251.28 last month on February 16. However, stocks have rallied from the supportive 100-day moving average and have consolidated below $ 210 for the past two weeks. Year-over-year, the CRWD is still an astonishing 419.9%.
Today’s bull note tide is interesting as analysts are already quite bullish. 16 of the 19 companies in question have a “buy” rating or better, while the remaining three rate Crowdstrike stock as a lukewarm “hold”. Additionally, the 12 month consensus target of $ 242.48 is a 21.8% premium over current levels.
And while short sellers have started to hit the exits, there is still a lot of pessimism to unwind, which could propel stocks even higher. Short rates fell around 17% over the last two reporting periods, but the 8.82 million short stocks sold still account for a massive 42.6% of the stock’s available free float.
Additional tailwind could come from shifting the option pits where puts are popular. This corresponds to the 50-day put / call volume ratio of CRWD on the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE) and the NASDAQ OMX PHLX (PHLX), which is over 96% of the other metrics over the past 12 months lies . This suggests that puts are being picked up faster than usual.
That shift could begin today. So far, 12,000 calls and 9,344 puts have crossed the band, which is five times the intraday average. The most popular is the March 200 monthly call, followed by the 180 in the same series. Buyers of these options expect more upside for Crowdstrike stocks by the end of the week, when these contracts expire.
These buyers are also lucky because CRWD options are quite affordable with post-earnings Volatility crush. The Schaeffer’s Volatility Index (SVI) of 60% is in the relatively low 17th percentile of its annual range. This means that the safety sports are currently offering bonuses at attractive prices.