CoreWeave (NASDAQ:CRWV) Shares Down 4% - Here's What Happened

Key Points

• CoreWeave shares fell 4% on Tuesday, trading as low as $78.40 and ending near $79.94, below the prior close of $83.31.
• Recent analyst sentiment remains mostly positive, with multiple firms raising price targets; MarketBeat data shows a Moderate Buy consensus and an average target price of $136.73.
• The company’s latest earnings missed expectations, with EPS of -$1.40 versus estimates of -$1.17, even though quarterly revenue jumped 111.6% year over year to $2.08 billion.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) traded down 4% during trading on Tuesday . The stock traded as low as $78.40 and last traded at $79.94. 25,752,117 shares were traded during mid-day trading, a decline of 9% from the average session volume of 28,342,516 shares. The stock had previously closed at $83.31.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. Roth Capital reissued a "buy" rating and issued a $150.00 price objective on shares of CoreWeave in a research report on Friday, May 8th. Barclays increased their price target on shares of CoreWeave from $106.00 to $120.00 and gave the company an "equal weight" rating in a report on Monday, May 11th. Jefferies Financial Group raised their price target on shares of CoreWeave from $120.00 to $160.00 and gave the stock a "buy" rating in a research report on Monday, May 4th. Bank of America raised shares of CoreWeave from a "neutral" rating to a "buy" rating and set a $100.00 price objective for the company in a research report on Tuesday, March 24th. Finally, DA Davidson reiterated a "neutral" rating and issued a $100.00 target price (down from $175.00) on shares of CoreWeave in a research note on Monday, May 18th. Twenty-one research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $136.73.

CoreWeave Stock Performance

The firm has a market capitalization of $35.78 billion, a price-to-earnings ratio of -25.70 and a beta of 7.17. The firm's 50-day moving average price is $104.50 and its two-hundred day moving average price is $95.37. The company has a debt-to-equity ratio of 3.68, a quick ratio of 0.31 and a current ratio of 0.31.

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

Insider Buying and Selling

In other CoreWeave news, major shareholder Magnetar Financial Llc sold 1,404,667 shares of CoreWeave stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $118.30, for a total transaction of $166,172,106.10. Following the completion of the transaction, the insider directly owned 282,570 shares of the company's stock, valued at approximately $33,428,031. This trade represents a 83.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Brian M. Venturo sold 1,125,000 shares of the firm's stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $115.93, for a total transaction of $130,421,250.00. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 24,634,178 shares of company stock worth $2,884,502,568 in the last 90 days. 24.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On CoreWeave

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. grew its stake in shares of CoreWeave by 275.6% during the fourth quarter. Vanguard Group Inc. now owns 27,920,979 shares of the company's stock valued at $1,999,421,000 after purchasing an additional 20,487,478 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank raised its position in CoreWeave by 6,022.0% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 112,768 shares of the company's stock worth $8,075,000 after purchasing an additional 110,926 shares during the last quarter. Legal & General Group Plc lifted its holdings in CoreWeave by 8,455.6% during the 4th quarter. Legal & General Group Plc now owns 611,301 shares of the company's stock worth $43,775,000 after buying an additional 604,156 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its holdings in CoreWeave by 67.2% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 66,947 shares of the company's stock worth $4,794,000 after buying an additional 26,907 shares in the last quarter. Finally, Hidden Lake Asset Management LP bought a new position in CoreWeave in the 3rd quarter valued at $14,814,000.

CoreWeave Company Profile

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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