What happened
Shares of CrowdStrike (CRWD 0.13%) gained 12.9% in July, according to data from S&P Global Market Intelligence. The company's stock gained ground in conjunction with momentum for the broader market and favorable coverage from analysts.
Image source: YCharts.
The market posted a month of strong gains in July, with the S&P 500 index closing out the month in positive territory on the year for the first time since March's coronavirus-driven market crash. CrowdStrike stock has benefited from the market's recovery and strong demand for its endpoint cybersecurity services, and the company's share price has more than doubled in 2020.
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So what
Citi analyst Walter Pritchard published a note on Crowdstrike stock on July 9, upgrading his rating on the stock from "sell" to "neutral." The note cited evidence of market share gains in the endpoint cybersecurity market as a core reason for the upgrade and also increased Citi's one-year price target on the stock from $74 per share to $116.
CrowdStrike got another boost from favorable analyst coverage courtesy of Jefferies analyst Brent Thill in a note published on July 28. Thill's note maintained a "hold" rating on the stock, but raised the one-year price target on the stock at Jefferies from $100 to $115 per share.
Now what
CrowdStrike stock has slumped early in August's trading. The company's share price is down roughly 10% in the month so far, and has lost ground despite a solid rally for the broader market. The exact reasons for the decline are unclear, but many growth-dependent cloud software and cybersecurity companies saw significant sell-offs in the trading period spanning from Aug. 5 through Aug. 7.
Image source: YCharts.
CrowdStrike is set to publish second quarter earnings results after the market closes on Sept. 2. The company is guiding for second quarter revenue to come in between $185.8 million and $190.3 million. Management expects to post earnings performance between break-even quarter and a non-GAAP (adjusted) loss of $0.02 per share.
For the full-year period, the cybersecurity specialist is guiding for sales between $761.2 million and $772.6 million and an adjusted loss per share between $0.05 and $0.08.
CrowdStrike has a market capitalization of roughly $22 billion and is valued at approximately 28.5 times this year's expected sales.
