CrowdStrike Holdings has completed the cash-and-stock acquisition of Humio, a provider of high-performance cloud log management and observability technology. Notably, the cloud-based cybersecurity provider had announced the deal on Feb. 18. Meanwhile, shares are down about 3.3% in Tuesday’s pre-market trading.
CrowdStrike (CRWD) has paid approximately $352 million in cash and $40 million in stock and options for Humio.
The company’s CEO George Kurtz said, “Humio will enhance CrowdStrike’s ability to solve real-world customer problems with its cloud-native platform by adding index-free data ingestion and analysis capabilities for both first- and third-party data.” Kurtz added that the acquisition would also accelerate “our XDR [extended detection and response] capabilities to cloud speed, re-defining the industry standard for modern XDR.” (See CrowdStrike stock analysis on TipRanks)
On Feb. 18, Canaccord Genuity analyst Michael Walkley maintained a Buy rating and a price target of $280 (52.9% upside potential) on the stock. In a note to investors, the analyst said, “We view CrowdStrike as a long-term secular winner in security due to its native cloud platform advantage versus closely held peers, and its expansion into tangential segments to capture a greater share of security budgets.”
Overall, consensus among analysts is a Strong Buy based on 15 Buys and 3 Holds. The average analyst price target of $240.94 implies upside potential of about 32% to current levels. Shares have rallied by over 220% over the past year.
Furthermore, TipRanks data shows that financial blogger opinions are 98% Bullish compared to a sector average of 70%.