CoreWeave (NASDAQ:CRWV) Coverage Initiated at Rothschild & Co Redburn

Key Points

• Rothschild & Co Redburn initiated coverage of CoreWeave with a “sell” rating and a $54 price target, implying 33.63% downside from the prior close.
• Analyst sentiment is mixed: 21 analysts rate the stock a buy, 10 a hold and 4 a sell, producing an overall “hold” consensus and an average price target of $139.37.
• CoreWeave reported strong revenue growth of 112.5% year over year to $2.58 billion in its latest quarter, but remained unprofitable; insiders have also sold $602.2 million of stock over the past 90 days.

Equities research analysts at Rothschild & Co Redburn began coverage on shares of CoreWeave (NASDAQ:CRWV - Get Free Report) in a research note issued on Monday, Benzinga reports. The brokerage set a "sell" rating and a $54.00 price target on the stock. Rothschild & Co Redburn's price target would indicate a potential downside of 33.63% from the stock's previous close.

CRWV has been the topic of several other reports. Jefferies Financial Group downgraded CoreWeave from a "buy" rating to a "hold" rating in a research report on Wednesday, July 22nd. Robert W. Baird increased their price objective on CoreWeave from $100.00 to $130.00 and gave the company an "outperform" rating in a research report on Wednesday, August 12th. Citigroup raised their price objective on shares of CoreWeave from $142.00 to $159.00 and gave the stock a "buy" rating in a research note on Friday, August 14th. Needham & Company LLC reaffirmed a "hold" rating on shares of CoreWeave in a research report on Thursday, August 13th. Finally, Barclays upped their target price on shares of CoreWeave from $90.00 to $105.00 and gave the company an "equal weight" rating in a research note on Thursday, August 13th. Twenty-one research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $139.37.

CoreWeave Price Performance

CRWV stock opened at $81.36 on Monday. The stock has a market capitalization of $37.33 billion, a price-to-earnings ratio of -22.29 and a beta of 7.45. The company has a 50-day moving average of $85.08 and a two-hundred day moving average of $94.06. CoreWeave has a 52-week low of $60.55 and a 52-week high of $153.20. The company has a debt-to-equity ratio of 5.53, a current ratio of 0.46 and a quick ratio of 0.46.

CoreWeave (NASDAQ:CRWV - Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The company reported ($1.14) EPS for the quarter, topping analysts' consensus estimates of ($1.52) by $0.38. CoreWeave had a negative return on equity of 47.95% and a negative net margin of 25.41%.The business had revenue of $2.58 billion for the quarter. During the same quarter in the previous year, the firm posted ($0.27) earnings per share. The company's revenue for the quarter was up 112.5% on a year-over-year basis. As a group, equities research analysts anticipate that CoreWeave will post -5.19 EPS for the current year.

Insider Activity at CoreWeave

In other news, major shareholder Magnetar Financial Llc sold 307,131 shares of the business's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $108.75, for a total transaction of $33,400,496.25. Following the sale, the insider directly owned 220,810 shares in the company, valued at approximately $24,013,087.50. The trade was a 58.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Michael Intrator sold 278,560 shares of the company's stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $97.43, for a total value of $27,140,100.80. Following the completion of the transaction, the chief executive officer owned 3,138,612 shares of the company's stock, valued at $305,794,967.16. The trade was a 8.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 6,764,950 shares of company stock valued at $602,166,101. Insiders own 24.20% of the company's stock.

Institutional Investors Weigh In On CoreWeave

Institutional investors have recently bought and sold shares of the business. Wellington Altus USA Inc. raised its stake in shares of CoreWeave by 256.0% in the 2nd quarter. Wellington Altus USA Inc. now owns 534 shares of the company's stock valued at $53,000 after buying an additional 384 shares in the last quarter. IKE Capital LLC lifted its holdings in shares of CoreWeave by 98.6% during the 2nd quarter. IKE Capital LLC now owns 13,690 shares of the company's stock worth $1,363,000 after acquiring an additional 6,796 shares during the period. The Manufacturers Life Insurance Company boosted its position in shares of CoreWeave by 7.0% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 23,616 shares of the company's stock valued at $2,351,000 after acquiring an additional 1,536 shares in the last quarter. Sequoia Financial Advisors LLC boosted its position in shares of CoreWeave by 3.6% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 4,128 shares of the company's stock valued at $411,000 after acquiring an additional 145 shares in the last quarter. Finally, Bienville Capital Management LLC boosted its position in shares of CoreWeave by 72.6% during the 2nd quarter. Bienville Capital Management LLC now owns 145,183 shares of the company's stock valued at $14,452,000 after acquiring an additional 61,083 shares in the last quarter.

CoreWeave Company Profile

CoreWeave, Inc is a specialized cloud computing provider focused on infrastructure for artificial intelligence, machine learning, high-performance computing and other data-intensive workloads. The company provides access to accelerated computing resources, particularly graphics processing units (GPUs), through a cloud platform designed for large-scale training, inference, rendering and scientific computing.

Its offerings include on-demand and reserved GPU instances, cloud storage, high-speed networking, Kubernetes-based container orchestration and managed services for deploying and scaling workloads.

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