CoreWeave (NASDAQ:CRWV) Shares Down 7.4% After Insider Selling

Key Points

• CoreWeave's shares fell by 7.4% to $86.06, driven by substantial insider selling from major shareholders including Magnetar Financial, which sold over 1.4 million shares.
• Research analysts have varying ratings on CoreWeave, with a consensus rating of "Hold" and a target price of $100.90, despite some upgrades to "strong-buy" and "buy" levels.
• The company reported quarterly earnings of ($0.27) per share, missing estimates, although revenue increased by 206.7% year-over-year to $1.21 million.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) shares traded down 7.4% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $85.26 and last traded at $86.06. 12,052,088 shares traded hands during trading, a decline of 39% from the average session volume of 19,868,818 shares. The stock had previously closed at $92.89.

Specifically, major shareholder Magnetar Financial Llc sold 915,382 shares of the company's stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $100.15, for a total value of $91,675,507.30. Following the transaction, the insider directly owned 397,757 shares in the company, valued at approximately $39,835,363.55. This represents a 69.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, major shareholder Magnetar Financial Llc sold 549,682 shares of the company's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $100.78, for a total transaction of $55,396,951.96. Following the completion of the transaction, the insider owned 395,707 shares in the company, valued at $39,879,351.46. This trade represents a 58.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. In related news, Director Jack D. Cogen sold 1,000,000 shares of the company's stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $100.20, for a total value of $100,200,000.00. Following the transaction, the director directly owned 13,441,680 shares in the company, valued at approximately $1,346,856,336. This represents a 6.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. Citigroup upgraded shares of CoreWeave from a "neutral" rating to a "buy" rating and set a $160.00 price target on the stock in a research note on Thursday, July 31st. Stifel Nicolaus upped their price objective on shares of CoreWeave from $115.00 to $120.00 and gave the stock a "hold" rating in a research report on Wednesday, August 13th. Bank of America cut their price objective on shares of CoreWeave from $185.00 to $168.00 and set a "neutral" rating for the company in a research report on Wednesday, August 13th. Wall Street Zen cut shares of CoreWeave from a "hold" rating to a "sell" rating in a research report on Thursday, May 22nd. Finally, Northland Capmk raised shares of CoreWeave to a "strong-buy" rating in a research report on Tuesday, May 13th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, fifteen have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $107.05.

CoreWeave Stock Up 3.5%

The company has a debt-to-equity ratio of 2.79, a quick ratio of 0.52 and a current ratio of 0.52. The company has a fifty day moving average price of $133.71.

CoreWeave (NASDAQ:CRWV - Get Free Report) last posted its earnings results on Tuesday, August 12th. The company reported ($0.27) EPS for the quarter, missing analysts' consensus estimates of ($0.20) by ($0.07). The firm had revenue of $1.21 million for the quarter. The firm's quarterly revenue was up 206.7% compared to the same quarter last year. CoreWeave has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Chelsea Counsel Co. bought a new position in shares of CoreWeave in the second quarter worth about $33,000. Archer Investment Corp bought a new position in shares of CoreWeave in the second quarter worth about $34,000. Chilton Capital Management LLC bought a new position in shares of CoreWeave in the second quarter worth about $39,000. Montag A & Associates Inc. bought a new position in shares of CoreWeave in the second quarter worth about $49,000. Finally, TD Waterhouse Canada Inc. bought a new position in shares of CoreWeave in the second quarter worth about $47,000.

CoreWeave Company Profile

CoreWeave, Inc engages in the powers of the creation and delivery of the intelligence that drives innovation. It offers a solution used by organizations of all sizes that require sophisticated AI computing, from the largest of enterprises to small, well-funded start-ups. The company was founded by Michael Intrator, Brian Venturo, and Brannin McBee on September 21, 2017 and is headquartered in Livingston, NJ.