CoreWeave (NASDAQ:CRWV) Shares Down 1.5% - Time to Sell?

Key Points

• CoreWeave shares fell 1.5% to $70.79, with trading volume 37% below its average. The stock is well below its 50-day and 200-day moving averages, both near $95.
• Analyst sentiment remains a Moderate Buy, with a consensus price target of $136.25, but several firms recently lowered ratings or targets, including Citigroup to Hold and Barclays to $90.
• CoreWeave posted strong revenue growth of 111.6% year over year to $2.08 billion, but missed quarterly EPS estimates and remains unprofitable. The company also carries high leverage, while insiders sold approximately $1.91 billion of stock over the past 90 days under pre-arranged trading plans.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report)'s share price fell 1.5% during trading on Monday . The company traded as low as $69.69 and last traded at $70.79. 17,730,622 shares traded hands during mid-day trading, a decline of 37% from the average session volume of 28,117,635 shares. The stock had previously closed at $71.88.

Analyst Ratings Changes

CRWV has been the subject of several recent research reports. Citigroup lowered CoreWeave from a "buy" rating to a "hold" rating in a report on Wednesday, July 22nd. DA Davidson reaffirmed a "neutral" rating and set a $100.00 price objective (down from $175.00) on shares of CoreWeave in a research report on Monday, May 18th. BNP Paribas Exane started coverage on CoreWeave in a research note on Tuesday, June 2nd. They set an "outperform" rating and a $192.00 price objective for the company. Rosenblatt Securities reissued a "buy" rating and issued a $250.00 target price on shares of CoreWeave in a report on Thursday, July 2nd. Finally, Barclays decreased their target price on shares of CoreWeave from $120.00 to $90.00 and set an "equal weight" rating on the stock in a research note on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $136.25.

CoreWeave Price Performance

The company has a debt-to-equity ratio of 3.68, a quick ratio of 0.31 and a current ratio of 0.31. The company has a market cap of $31.68 billion, a P/E ratio of -22.76 and a beta of 7.17. The firm's fifty day moving average is $97.04 and its two-hundred day moving average is $95.44.

CoreWeave (NASDAQ:CRWV - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($1.40) EPS for the quarter, missing analysts' consensus estimates of ($1.17) by ($0.23). CoreWeave had a negative net margin of 25.57% and a negative return on equity of 43.07%. The business had revenue of $2.08 billion for the quarter. During the same quarter in the previous year, the company posted ($0.60) earnings per share. The firm's revenue for the quarter was up 111.6% on a year-over-year basis. As a group, analysts anticipate that CoreWeave Inc. will post -4.57 earnings per share for the current fiscal year.

Insider Buying and Selling

In other CoreWeave news, CEO Michael N. Intrator sold 61,797 shares of the company's stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $86.94, for a total value of $5,372,631.18. Following the completion of the transaction, the chief executive officer directly owned 2,876,815 shares in the company, valued at $250,110,296.10. This represents a 2.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Brannin Mcbee sold 53,000 shares of the company's stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $86.13, for a total value of $4,564,890.00. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 16,356,870 shares of company stock worth $1,905,180,027. 24.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On CoreWeave

Several hedge funds have recently modified their holdings of CRWV. Cornerstone Planning Group LLC grew its stake in CoreWeave by 272.8% during the fourth quarter. Cornerstone Planning Group LLC now owns 343 shares of the company's stock valued at $25,000 after acquiring an additional 251 shares in the last quarter. Cullen Frost Bankers Inc. increased its holdings in CoreWeave by 45.8% in the 4th quarter. Cullen Frost Bankers Inc. now owns 385 shares of the company's stock valued at $28,000 after acquiring an additional 121 shares during the last quarter. Greenline Wealth Management LLC purchased a new stake in CoreWeave in the 4th quarter worth $28,000. Peterson Wealth Services lifted its stake in CoreWeave by 153.1% in the 1st quarter. Peterson Wealth Services now owns 405 shares of the company's stock worth $31,000 after purchasing an additional 245 shares in the last quarter. Finally, Cassaday & Co Wealth Management LLC bought a new position in shares of CoreWeave during the 1st quarter valued at about $31,000.

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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