CoreWeave (NASDAQ:CRWV) Raised to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen upgraded CoreWeave from “strong sell” to “sell,” while analyst opinions remain mixed: MarketBeat’s consensus is “Moderate Buy,” with an average price target of $116.66.
• CoreWeave beat quarterly estimates, reporting a loss of $0.95 per share versus the $1.45 expected and revenue of $3.66 billion versus $3.54 billion; revenue rose 168.2% year over year.
• The shares opened at $53.13, well below their 50-day and 200-day moving averages. The company also reported a debt-to-equity ratio of 5.53 and negative net margin of 25.56%.

CoreWeave (NASDAQ:CRWV - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "strong sell" rating to a "sell" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

A number of other analysts have also weighed in on the company. Weiss Ratings restated a "sell (d-)" rating on shares of CoreWeave in a report on Monday, September 21st. Northland Securities set a $200.00 target price on shares of CoreWeave in a research note on Wednesday, October 7th. Truist Financial dropped their target price on shares of CoreWeave from $165.00 to $115.00 and set a "buy" rating on the stock in a research report on Wednesday. Robert W. Baird boosted their target price on shares of CoreWeave from $100.00 to $130.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 12th. Finally, UBS Group cut their price target on shares of CoreWeave from $120.00 to $105.00 and set a "buy" rating on the stock in a research note on Friday, October 23rd. Twenty-six research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $116.66.

CoreWeave Price Performance

CoreWeave stock opened at $53.13 on Friday. The company has a debt-to-equity ratio of 5.53, a current ratio of 0.46 and a quick ratio of 0.46. The firm has a 50-day moving average of $72.60 and a two-hundred day moving average of $88.80. CoreWeave has a 1 year low of $40.58 and a 1 year high of $138.25.

CoreWeave (NASDAQ:CRWV - Get Free Report) last released its quarterly earnings data on Tuesday, November 10th. The company reported ($0.95) EPS for the quarter, topping the consensus estimate of ($1.45) by $0.50. The company had revenue of $3.66 billion for the quarter, compared to the consensus estimate of $3.54 billion. CoreWeave had a negative return on equity of 59.42% and a negative net margin of 25.56%. CoreWeave's quarterly revenue was up 168.2% on a year-over-year basis. During the same period last year, the business posted ($0.22) EPS. Equities analysts anticipate that CoreWeave will post -4.99 EPS for the current fiscal year.

Insider Transactions at CoreWeave

In related news, insider Jeff Baker sold 6,670 shares of the firm's stock in a transaction on Thursday, October 29th. The shares were sold at an average price of $61.16, for a total transaction of $407,937.20. Following the completion of the transaction, the insider owned 14,170 shares of the company's stock, valued at $866,637.20. This trade represents a 32.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Sachin Jain sold 13,611 shares of the business's stock in a transaction on Monday, November 9th. The shares were sold at an average price of $46.23, for a total transaction of $629,236.53. Following the transaction, the chief operating officer owned 177,224 shares of the company's stock, valued at $8,193,065.52. This represents a 7.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 3,419,887 shares of company stock valued at $304,094,910. 24.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On CoreWeave

Institutional investors have recently modified their holdings of the stock. Marshall Wace LLP boosted its stake in shares of CoreWeave by 4,321.4% in the third quarter. Marshall Wace LLP now owns 2,224,296 shares of the company's stock worth $193,781,000 after buying an additional 2,173,989 shares during the last quarter. Headlands Technologies LLC acquired a new stake in CoreWeave during the third quarter worth about $478,000. Empowered Funds LLC grew its holdings in CoreWeave by 50.5% during the third quarter. Empowered Funds LLC now owns 40,636 shares of the company's stock worth $3,540,000 after acquiring an additional 13,641 shares during the period. PSI Advisors LLC raised its position in CoreWeave by 19.9% during the third quarter. PSI Advisors LLC now owns 3,045 shares of the company's stock valued at $265,000 after acquiring an additional 506 shares in the last quarter. Finally, State Board of Administration of Florida Retirement System raised its position in CoreWeave by 6.1% during the third quarter. State Board of Administration of Florida Retirement System now owns 309,754 shares of the company's stock valued at $26,986,000 after acquiring an additional 17,943 shares in the last quarter.

Top CoreWeave Stories

These are some of the CRWV stories that stood out recently:

• Positive Sentiment: Management’s financing plans, including a proposed $4 billion investment-grade loan, may help lower borrowing costs. One analysis cited customer prepayments and secured funding as reducing near-term refinancing risk. CoreWeave plans a $4 billion loan
• Neutral Sentiment: Analyst actions were mixed: Barclays cut its target to $85 and kept an Equal Weight rating, while Argus lowered its target to $100 but maintained Buy. The revisions reflect continued debate over valuation and execution. Barclays lowers price target
• Negative Sentiment: Reports that Microsoft is reevaluating neocloud contracts and prioritizing its own data centers—and questions about future Nvidia backing following reports involving Jensen Huang—have raised concerns about customers, funding and the value of CoreWeave’s chip investments. Microsoft news weighs on neoclouds

About CoreWeave

CoreWeave is a cloud computing company that provides infrastructure for artificial intelligence, machine learning, and other compute-intensive workloads. Its services include access to graphics processing units (GPUs), cloud storage and networking, and software tools for deploying and managing workloads. The company was founded in 2017 as a cryptocurrency mining business and later shifted its focus to cloud computing. CoreWeave is headquartered in Livingston, New Jersey, and operates data center infrastructure in the United States and Europe, serving customers that need large-scale computing resources.

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