CoreWeave (NASDAQ:CRWV) Shares Down 7.6% - What's Next?

Key Points

• Shares fell 7.6% to about $69 on Thursday on heavy volume (≈40.2M shares, +67% vs. average), trading well below the 50- and 200-day moving averages near $121 and leaving a market cap around $26.7B.
• Wall Street gives a consensus rating of "Moderate Buy" with a $130.14 price target, though analysts are split — some have raised targets while others (Loop Capital, Macquarie) recently cut theirs.
• CoreWeave reported strong top-line growth (revenue up 133.7% YoY and revenue/EPS beats) but remains unprofitable with a negative EPS, high leverage (debt/equity 2.66, current ratio 0.49) and significant insider selling (33.6M shares sold in the past 90 days).

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report)'s share price dropped 7.6% during mid-day trading on Thursday . The company traded as low as $68.95 and last traded at $69.21. Approximately 40,173,088 shares were traded during trading, an increase of 67% from the average daily volume of 24,064,896 shares. The stock had previously closed at $74.92.

Wall Street Analysts Forecast Growth

CRWV has been the subject of several research reports. JMP Securities upgraded shares of CoreWeave from a "market perform" rating to a "market outperform" rating and set a $180.00 price objective for the company in a report on Tuesday, September 16th. Argus reiterated a "buy" rating and set a $200.00 price target on shares of CoreWeave in a research report on Thursday, August 14th. Loop Capital lowered their price objective on shares of CoreWeave from $165.00 to $120.00 and set a "buy" rating for the company in a report on Wednesday, November 12th. Macquarie cut their price objective on CoreWeave from $140.00 to $115.00 and set a "neutral" rating on the stock in a research report on Tuesday, November 11th. Finally, HC Wainwright reissued a "buy" rating and issued a $180.00 target price on shares of CoreWeave in a research report on Wednesday, November 12th. Two analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, twelve have issued a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $130.14.

CoreWeave Stock Performance

The company has a debt-to-equity ratio of 2.66, a quick ratio of 0.49 and a current ratio of 0.49. The business's 50-day moving average is $121.10 and its 200-day moving average is $119.71. The company has a market capitalization of $26.74 billion and a PE ratio of -47.73.

CoreWeave (NASDAQ:CRWV - Get Free Report) last announced its earnings results on Monday, November 10th. The company reported ($0.22) earnings per share for the quarter, beating analysts' consensus estimates of ($0.36) by $0.14. The business had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.28 billion. During the same period in the prior year, the business posted ($1.82) EPS. CoreWeave's revenue for the quarter was up 133.7% on a year-over-year basis. CoreWeave has set its FY 2025 guidance at EPS.

Insider Buying and Selling

In other CoreWeave news, major shareholder Magnetar Financial Llc sold 1,451,063 shares of CoreWeave stock in a transaction on Friday, September 19th. The stock was sold at an average price of $125.60, for a total transaction of $182,253,512.80. Following the completion of the transaction, the insider owned 363,631 shares in the company, valued at approximately $45,672,053.60. The trade was a 79.96% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Jack D. Cogen sold 1,112,004 shares of the business's stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $94.69, for a total value of $105,295,658.76. Following the completion of the sale, the director directly owned 12,329,676 shares in the company, valued at $1,167,497,020.44. This trade represents a 8.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 33,615,739 shares of company stock valued at $4,284,590,906.

Hedge Funds Weigh In On CoreWeave

Hedge funds have recently bought and sold shares of the company. Apexium Financial LP bought a new stake in shares of CoreWeave in the second quarter worth approximately $1,044,000. Chung Wu Investment Group LLC bought a new position in CoreWeave during the second quarter valued at approximately $755,000. Cisco Systems Inc. purchased a new stake in CoreWeave in the second quarter worth approximately $173,493,000. Gamco Investors INC. ET AL bought a new stake in CoreWeave in the 1st quarter worth approximately $318,000. Finally, Rockline Wealth Management LLC bought a new stake in CoreWeave in the 2nd quarter worth approximately $951,000.

About CoreWeave

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.

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