CrowdStrike Holdings (Nasdaq: CRWD) released its fiscal 2027 first-quarter earnings report on Wednesday, using the opportunity to announce an upcoming stock split.
It’s 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.
Here’s everything you need to know about CrowdStrike’s upcoming stock split.
What is a stock split?
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.
In these situations, each stockholder will see their shares divided by a specific number. The value they hold—and the company’s overall value—will remain the same (based on the whims of the stock market, of course). However, each share will be worth less than before.
How much is CrowdStrike splitting the stock by?
CrowdStrike’s board of directors has approved a four-to-one stock split for all of the company’s Class A common stock. Every stockholder will receive three more shares for each share they own.
When do CrowdStrike’s shares split?
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—again, after the closing bell.
The company expects split-adjusted trading to start when the market opens the next day, Thursday, July 2.
What will CrowdStrike’s new split-adjusted stock price be?
Right now, there’s no way to know exactly what CrowdStrike’s split-adjusted stock price will be. That figure will be determined by the company’s stock price at the close of business on July 1.
In premarket trading on Thursday, June 4, CrowdStrike’s shares were down more than 10% to about $672 per share. According to Reuters, Morgan Stanley analysts blame it on “relatively skinnier net new [annual recurring revenue] beat this quarter and elevated expectations following the stock’s 60% move over the last month.”
If the current number held there through July 1, then the new stock price would be about $168 per share.