Sorry to start yet another CRWD thread but I wanted to call attention to the surge of trading taking place since Jan 1.
Since lockup expired in early December, CRWD trading volume has been quite bumpy, with many days of 4-6M shares trading hands vs around 2M daily before expiration. However, since January 2nd CRWD activity has been on fire with the following levels of trading:
Anyone want to hazard a guess here? Is this shorts getting squeezed? Institutional investors deciding to get back in? I’m really happy to ride it up but I’m not seeing anything remotely resembling this in other stocks in my portfolio that are also doing well in 202.
Wow, good catch. The volume has been 4x, 5x or more what they would usually see.
My guess is big funds are adding. Mon 1/6 when the volume spiked to over 20m shares, that was the day the share price went up 10%. That’s a lot of buying. Had to be some funds. That was the day of a big upgrade, so maybe that kicked them off.
After hours 1/6 CRWD announced the 5m share sale by a large holder. I have no idea if those shares were sold on 1/7 but with the volume it seems possible. But in addition I’m sure other large holders took the opportunity to sell at $55.
Who?
Perhaps some VCs and such who have held since before the IPO, but who were slightly more patient that others were through the lockout and didn’t want to give their shares away for $40-something each or whatever.
Perhaps some of the folks who were buying at $45 and are up 20%+ in a matter of weeks.
Those are just my guesses.
Another guess: it’s going higher. As the volume has come down the last two days, we haven’t seen the shares drop, meaning we haven’t seen a lot of panic sellers willing to take any price. Folks are selling, but only at the now higher price. It’s my impression that this is how walls of worry are climbed. With people selling all along the way for various reasons, but increasingly more people buying.
You or I might regret selling now if CRWD is back at $75 in a month or two, but my guess is those who are doing most of the selling this week have made significant $$ already, and they’re on to the next day-trade, or maybe even the next pre-ipo company.
I believe part of the jump was due to a Billionaire investor who now bought up 5% of the overall stocks for CRWD here recently. It was announced the day it jumped up 10% that he had accrued that much so it could be partially some from him, but too, other investors jumping on the coattails of someone who they follow and believe to be correct. Could be wrong, but believe it does have something to do with some of the amounts of shares being bought/sold. Cant find the article now that was talking about it, but know its out there.
Directors and 10% owners Joseph P. Landy and Warburg Pincus Private Equity
Hamm, President, CEO and 10% owner George Kurtz, 10% owner CapitalG LP, and director Roxanne S. Austin sold a combined 12.1 million shares of CrowdStrike Holdings Inc. (CRWD), for an average price of $57.29 per share on Jan. 06 and 07.’
I’m not real sure how long venture cap folks tend to leave their investments alone, but if Google got 11% of the company in the Series C round at a $700 million market cap in July 2015 (according to crn.com and pitchbook.com) and the current market cap is over $11 billion it’s pretty conceivable they might want to take some of that massive gain and invest it somewhere else.
it’s pretty conceivable they might want to take some of that massive gain and invest it somewhere else.
BINGO!!!
The same goes with all of the others as well. Of course they are cashing in! Who wouldn’t?
Sorry for the short note. Plenty of reasons insiders sell. They likely would have sold before but just couldn’t due to the lock up. This is a non-event in terms of the business. We will see what the business does.