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CrowdStrike Holdings (Nasdaq: CRWD) released its fiscal 2027 first-quarter earnings report on Wednesday, using the opportunity to announce an upcoming stock split.<\/p>\n
It\u2019s a first for the cybersecurity company, which made its IPO nearly seven years ago to the day, and will bring a major drop in its per-share price. <\/p>\n
Here\u2019s everything you need to know about CrowdStrike\u2019s upcoming stock split.<\/p>\n
A stock split is a tool companies can use to change their number of shares. Typically, this means increasing the amount, which is the case for CrowdStrike.\u00a0<\/p>\n
In these situations, each stockholder will see their shares divided by a specific number. The value they hold\u2014and the company\u2019s overall value\u2014will remain the same (based on the whims of the stock market, of course). However, each share will be worth less than before. <\/p>\n
CrowdStrike\u2019s board of directors has approved a four-to-one stock split for all of the company\u2019s Class A common stock. Every stockholder will receive three more shares for each share they own. <\/p>\n
CrowdStrike will make a record of each stockholder when the market closes on Thursday, June 25. The following Wednesday, July 1, each of these stockholders will receive their three extra shares\u2014again, after the closing bell. <\/p>\n
The company expects split-adjusted trading to start when the market opens the next day, Thursday, July 2.\u00a0\u00a0<\/p>\n
Right now, there\u2019s no way to know exactly what CrowdStrike\u2019s split-adjusted stock price will be. That figure will be determined by the company\u2019s stock price at the close of business on July 1. <\/p>\n
In premarket trading on Thursday, June 4, CrowdStrike\u2019s shares were down more than 10% to about $672 per share. According to Reuters<\/a>, Morgan Stanley analysts blame it on \u201crelatively skinnier net new [annual recurring revenue] \u200bbeat this quarter and elevated expectations following the stock’s \u206060% move over the last month.\u201d\u00a0<\/p>\n If the current number held there through July 1, then the new stock price would be about $168 per share.<\/p>\n \n