CrowdStrike Holdings Stock Is Surging Monday: What's Going On?

Zinger Key Points
  • S&P Dow Jones Indices announces that CrowdStrike, KKR & Co and GoDaddy will replace Robert Half, Comerica and Illumina in the S&P 500.
  • The changes are set to become effective prior to the open of trading on June 24.

CrowdStrike Holdings Inc CRWD shares are trading higher Monday after it was announced the company will join the S&P 500.

What To Know: After the market close on Friday, S&P Dow Jones Indices announced that CrowdStrike, KKR & Co and GoDaddy would replace Robert Half, Comerica and Illumina in the S&P 500.

The changes are set to become effective prior to the open of trading on June 24 to coincide with the quarterly rebalance of the S&P Dow Jones Indices.

The S&P 500 is a market capitalization-weighted index that tracks the largest 500 publicly traded companies. The index is considered one of the best gauges of broader market performance and is tracked by the SPDR S&P 500 SPY.

See Also: Don’t Miss Apple’s WWDC 2024 Keynote: How And Where To Watch On June 10

Is CRWD A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like CrowdStrike Holdings‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. CrowdStrike does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 13.14%, you'll need to buy a share of Annaly Capital Management by Jun. 28, 2024. Once done, you can expect to receive a nominal payout of $0.65 on Jul. 31, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on CrowdStrike Holdings will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

CRWD Price Action: CrowdStrike shares were having near new 52-week highs at last check. The stock was up 5.82% at $369.45 at the time of publication, according to Benzinga Pro.

Photo: Shutterstock.

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