CrowdStrike article likely creates share overhang, says RBC Capital

RBC Capital analyst Matthew Hedberg says shares of CrowdStrike (CRWD) are down 4% following a Bloomberg report that U.S. investigators are probing the role of its senior executives over what they knew about a $32M deal with Carahsoft. The article also sates investigators are examining other transactions done by CrowdStrike, including some with the Department of Health and Human Services and Department of Energy, the analyst tells investors in a research note. RBC points out that while CrowdStrike is in its quiet period, the company noted to the firm that the Bloomberg article is old news and that it stands by the accounting of the transaction. However, this update “likely creates an overhang for the stock and reignites the bull/bear debate,” RBC contends. The firm has an Outperform rating on CrowdStrike shares.