CoreWeave (NASDAQ:CRWV) Shares Down 11.4% After Insider Selling

Key Points

• CoreWeave shares fell 11.4% after trading following insider selling, with the stock dropping as low as $110.55 on heavier-than-normal volume.
• CEO Michael N. Intrator and EVP Chen Goldberg sold shares in recent transactions, including sales made under a pre-arranged Rule 10b5-1 plan and to cover tax withholding on vesting equity awards.
• Despite the pullback, Wall Street remains broadly positive: most analysts still rate the stock a Buy, and recent news highlighted record bookings and strong revenue growth, even as concerns remain about losses, rising costs, and a weaker-than-expected Q2 outlook.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) traded down 11.4% during trading on Friday following insider selling activity. The stock traded as low as $110.55 and last traded at $114.15. 48,072,562 shares were traded during mid-day trading, an increase of 71% from the average session volume of 28,167,588 shares. The stock had previously closed at $128.84.

Specifically, EVP Chen Goldberg sold 19,222 shares of the company's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $125.00, for a total transaction of $2,402,750.00. Following the sale, the executive vice president directly owned 62,345 shares of the company's stock, valued at $7,793,125. This represents a 23.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael N. Intrator sold 107,693 shares of CoreWeave stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $127.59, for a total value of $13,740,549.87. Following the completion of the transaction, the chief executive officer owned 4,862,666 shares of the company's stock, valued at approximately $620,427,554.94. This trade represents a 2.17% 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. In other CoreWeave news, CEO Michael N. Intrator sold 200,000 shares of the stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $127.59, for a total value of $25,518,000.00. Following the sale, the chief executive officer owned 4,666,501 shares of the company's stock, valued at $595,398,862.59. This trade represents a 4.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the stock. HC Wainwright reissued a "buy" rating and issued a $180.00 price objective on shares of CoreWeave in a research report on Monday, March 2nd. Roth Mkm reaffirmed a "buy" rating and set a $150.00 price objective on shares of CoreWeave in a research report on Friday. Macquarie Infrastructure restated a "neutral" rating and set a $115.00 target price on shares of CoreWeave in a research note on Tuesday, January 27th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $135.00 price target on shares of CoreWeave in a research note on Friday. Finally, Citigroup increased their target price on shares of CoreWeave from $126.00 to $155.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Twenty research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, CoreWeave has an average rating of "Moderate Buy" and a consensus target price of $131.09.

Trending Headlines about CoreWeave

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: CoreWeave reported record bookings and a huge backlog, reinforcing strong demand for its AI cloud infrastructure and supporting the long-term growth narrative. CoreWeave Reports 'Strongest' Bookings In Company History
• Positive Sentiment: Revenue for Q1 came in above expectations, showing that CoreWeave is still benefiting from explosive AI infrastructure demand. CoreWeave (CRWV) Reports Q1 Loss, Tops Revenue Estimates
• Neutral Sentiment: Analyst price-target increases from JPMorgan and Mizuho suggest Wall Street still sees value in CRWV, but both firms kept neutral ratings, limiting the bullish impact. JPMorgan and Mizuho target updates
• Negative Sentiment: The Q2 revenue outlook came in below consensus, raising concerns that backlog-to-revenue conversion may be slower than investors expected. CoreWeave shares plunge. Revenue doubles but AI costs are rising.
• Negative Sentiment: CoreWeave also raised its capital spending outlook, which reinforces concerns that growth is still being funded by aggressive investment and debt. Why CoreWeave stock is falling despite strong AI revenue growth?
• Negative Sentiment: The company’s quarterly loss was wider than expected, and multiple reports highlighted operating costs rising faster than revenue, pressuring sentiment on profitability. WSJ: CoreWeave Widens First-Quarter Loss as Costs Outpace Revenue Growth
• Negative Sentiment: Recent insider and shareholder selling, including large sales by Magnetar and company executives, is adding short-term pressure to the stock. Magnetar SEC filing

CoreWeave Price Performance

The company has a 50-day moving average of $94.19 and a 200-day moving average of $92.34. The company has a debt-to-equity ratio of 4.46, a quick ratio of 0.46 and a current ratio of 0.46. The stock has a market cap of $50.56 billion, a price-to-earnings ratio of -35.67 and a beta of 7.84.

CoreWeave (NASDAQ:CRWV - Get Free Report) last announced its earnings results on Thursday, February 26th. The company reported ($0.89) earnings per share for the quarter, missing the consensus estimate of ($0.61) by ($0.28). CoreWeave had a negative net margin of 22.75% and a negative return on equity of 33.82%. The company had revenue of $1.57 billion during the quarter. The company's quarterly revenue was up 110.4% compared to the same quarter last year. As a group, equities research analysts predict that CoreWeave Inc. will post -4.15 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its position in CoreWeave by 275.6% during the 4th quarter. Vanguard Group Inc. now owns 27,920,979 shares of the company's stock worth $1,999,421,000 after purchasing an additional 20,487,478 shares during the period. Proficio Capital Partners LLC raised its position in CoreWeave by 446,194.0% in the third quarter. Proficio Capital Partners LLC now owns 17,851,760 shares of the company's stock worth $2,443,013,000 after acquiring an additional 17,847,760 shares in the last quarter. Deutsche Bank AG raised its position in CoreWeave by 22,624.0% in the fourth quarter. Deutsche Bank AG now owns 3,812,856 shares of the company's stock worth $273,039,000 after acquiring an additional 3,796,077 shares in the last quarter. Altimeter Capital Management LP acquired a new stake in CoreWeave in the fourth quarter valued at $230,099,000. Finally, Alyeska Investment Group L.P. boosted its position in shares of CoreWeave by 300.0% during the 4th quarter. Alyeska Investment Group L.P. now owns 4,000,000 shares of the company's stock worth $286,440,000 after purchasing an additional 3,000,000 shares in the last quarter.

About CoreWeave

CoreWeave is a U.S.-based provider of GPU-accelerated cloud infrastructure designed to support compute-intensive workloads such as artificial intelligence, machine learning, visual effects rendering and other high-performance computing applications. The company supplies access to large fleets of modern GPUs and complementary infrastructure that enable customers to train and deploy large models, run inference at scale, and process graphics-heavy workloads with low latency and high throughput.

CoreWeave’s product offering includes on-demand and dedicated GPU instances, bare-metal servers, private clusters and managed services tailored for enterprise and developer use.

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