Truist Financial Has Lowered Expectations for CoreWeave (NASDAQ:CRWV) Stock Price

Key Points

• Truist cut its CoreWeave price target from $165 to $115 but maintained a Buy rating; the revised target implies about 136% upside from the prior close.
• Analyst views remain mixed: the consensus rating is Moderate Buy with a $120.19 target, while 27 analysts rate the stock Buy, eight Hold, and four Sell.
• CoreWeave reported quarterly revenue of $2.58 billion, up 112.5% year over year, and a smaller-than-expected loss per share. The article also highlights financial risk, including a 5.53 debt-to-equity ratio and substantial insider share sales.

CoreWeave (NASDAQ:CRWV - Get Free Report) had its target price reduced by analysts at Truist Financial from $165.00 to $115.00 in a research note issued on Wednesday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Truist Financial's price objective suggests a potential upside of 135.99% from the company's previous close.

A number of other equities analysts have also weighed in on the stock. William Blair started coverage on shares of CoreWeave in a research note on Wednesday, September 30th. They issued an "outperform" rating for the company. Northland Securities set a $200.00 price target on shares of CoreWeave in a research note on Wednesday, October 7th. Raymond James Financial reiterated an "outperform" rating and set a $75.00 target price on shares of CoreWeave in a research note on Monday, October 26th. TD Cowen raised shares of CoreWeave to a "buy" rating in a report on Wednesday, July 22nd. Finally, Sanford C. Bernstein lowered CoreWeave from a "hold" rating to a "strong sell" rating in a report on Monday, October 26th. Twenty-seven research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $120.19.

CoreWeave Stock Down 0.5%

Shares of CRWV opened at $48.73 on Wednesday. The business's fifty day moving average price is $74.13 and its two-hundred day moving average price is $89.44. The company has a debt-to-equity ratio of 5.53, a quick ratio of 0.46 and a current ratio of 0.46. The firm has a market capitalization of $22.36 billion, a price-to-earnings ratio of -13.35 and a beta of 7.71. CoreWeave has a 52 week low of $40.58 and a 52 week high of $138.25.

CoreWeave (NASDAQ:CRWV - Get Free Report) last announced its quarterly earnings data on Tuesday, August 11th. The company reported ($1.14) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($1.52) by $0.38. CoreWeave had a negative net margin of 25.41% and a negative return on equity of 47.95%. The firm had revenue of $2.58 billion for the quarter. During the same period in the previous year, the business posted ($0.27) earnings per share. CoreWeave's revenue was up 112.5% compared to the same quarter last year. On average, analysts predict that CoreWeave will post -4.99 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Michael N. Intrator sold 200,000 shares of CoreWeave stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $95.72, for a total value of $19,144,000.00. Following the transaction, the chief executive officer directly owned 1,676,815 shares of the company's stock, valued at $160,504,731.80. The trade was a 10.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Magnetar Financial Llc sold 307,131 shares of the business's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $108.75, for a total transaction of $33,400,496.25. Following the completion of the transaction, the insider owned 220,810 shares in the company, valued at approximately $24,013,087.50. The trade was a 58.18% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 3,727,018 shares of company stock valued at $337,495,407 in the last quarter. 24.20% of the stock is currently owned by company insiders.

Institutional Trading of CoreWeave

A number of institutional investors have recently modified their holdings of CRWV. Essential Partners LLC purchased a new position in CoreWeave during the second quarter worth about $30,000. MassMutual Private Wealth & Trust FSB boosted its stake in shares of CoreWeave by 241.1% during the third quarter. MassMutual Private Wealth & Trust FSB now owns 307 shares of the company's stock valued at $27,000 after purchasing an additional 217 shares during the period. Burnham & Co LLC bought a new stake in CoreWeave in the 2nd quarter worth $32,000. Cassaday & Co Wealth Management LLC purchased a new position in CoreWeave during the 1st quarter valued at about $31,000. Finally, Allied Private Wealth LLC bought a new stake in shares of CoreWeave in the 2nd quarter worth approximately $40,000.

CoreWeave News Summary

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: Strong results and higher guidance: CoreWeave’s revenue exceeded estimates, its quarterly loss was narrower than expected, and management raised its full-year outlook. The report helped ease concerns that AI infrastructure demand may be slowing. Reuters earnings report
• Positive Sentiment: Demand and customer funding: The company reported a backlog of about $132.5 billion and expects roughly $9 billion in customer prepayments and deposits over the next three months. These figures support demand visibility and could help fund capacity growth. Yahoo Finance outlook report
• Positive Sentiment: Analyst support: Citizens reiterated its Market Outperform rating and $180 price target, citing potential upside if growth continues. Finbold analyst report
• Neutral Sentiment: Insider sale tied to taxes: COO Sachin Jain sold 13,611 shares to cover tax withholding on vested equity awards and retained 177,224 shares; the stated reason makes the transaction less clearly bearish. Insider-trading report
• Negative Sentiment: Financing and cash-flow risks remain: The data-center buildout is capital-intensive, and CoreWeave’s debt burden and financing costs remain a concern. Continued reliance on capital markets could constrain expansion or weigh on profitability if funding becomes more expensive or difficult to obtain. Wall Street Journal financing report

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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