CoreWeave (NASDAQ:CRWV) Shares Down 5.8% - Should You Sell?

Key Points

• Shares down 5.8% — CRWV fell to about $105.53 Tuesday (low $103.05) on roughly 27.6M shares traded, off its prior close of $112.06.
• EPS miss but big revenue growth — CoreWeave reported (−$0.89) EPS vs. (−$0.61) expected while revenue jumped 110% year‑over‑year to $1.57B, though the business remains unprofitable with negative margins and ROE.
• Mixed signals from the market — Analysts carry a consensus “Moderate Buy” (20 Buys) with a $125.16 target and several firms lifting targets up to $180, even as insiders sold about 15.8M shares (~$1.63B) in the past 90 days.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report)'s share price fell 5.8% during trading on Tuesday . The company traded as low as $103.05 and last traded at $105.53. 27,643,306 shares were traded during mid-day trading, a decline of 1% from the average session volume of 27,796,789 shares. The stock had previously closed at $112.06.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on CRWV. Deutsche Bank Aktiengesellschaft upgraded shares of CoreWeave from a "hold" rating to a "buy" rating and raised their target price for the stock from $100.00 to $140.00 in a report on Tuesday, January 27th. Citizens Jmp reiterated a "market outperform" rating and set a $180.00 price target on shares of CoreWeave in a research report on Friday, February 27th. Weiss Ratings restated a "sell (d-)" rating on shares of CoreWeave in a research report on Monday, December 29th. DA Davidson increased their price objective on CoreWeave from $125.00 to $175.00 and gave the stock a "buy" rating in a report on Monday, April 13th. Finally, Truist Financial raised their price objective on CoreWeave from $84.00 to $85.00 and gave the company a "hold" rating in a research report on Friday, February 27th. Twenty analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, CoreWeave currently has a consensus rating of "Moderate Buy" and a consensus target price of $125.16.

CoreWeave Trading Down 5.8%

The stock has a 50-day moving average of $90.92 and a two-hundred day moving average of $93.09. The company has a market cap of $46.75 billion and a P/E ratio of -32.98. The company has a debt-to-equity ratio of 4.46, a quick ratio of 0.46 and a current ratio of 0.46.

CoreWeave (NASDAQ:CRWV - Get Free Report) last released its earnings results on Thursday, February 26th. The company reported ($0.89) EPS for the quarter, missing analysts' consensus estimates of ($0.61) by ($0.28). The company had revenue of $1.57 billion during the quarter. CoreWeave had a negative return on equity of 33.82% and a negative net margin of 22.75%.The business's revenue was up 110.4% compared to the same quarter last year. On average, equities research analysts predict that CoreWeave Inc. will post -4.16 earnings per share for the current year.

Insider Buying and Selling at CoreWeave

In other news, insider Brian M. Venturo sold 76,924 shares of the company's stock in a transaction that occurred on Wednesday, April 22nd. The shares were sold at an average price of $122.31, for a total value of $9,408,574.44. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Magnetar Financial Llc sold 2,770 shares of the stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $119.56, for a total transaction of $331,181.20. Following the sale, the insider owned 269,530 shares in the company, valued at approximately $32,225,006.80. The trade was a 1.02% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 15,819,326 shares of company stock worth $1,628,389,243.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Sivia Capital Partners LLC purchased a new stake in shares of CoreWeave during the 2nd quarter valued at about $39,824,000. Quantbot Technologies LP bought a new position in CoreWeave during the second quarter valued at approximately $311,000. Invesco Ltd. bought a new position in CoreWeave during the second quarter valued at approximately $882,000. First Trust Advisors LP purchased a new stake in CoreWeave in the second quarter worth approximately $20,260,000. Finally, Baird Financial Group Inc. purchased a new stake in CoreWeave in the second quarter worth approximately $455,000.

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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