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

Key Points

• Shares gapped down — CoreWeave opened at $103.60 on Tuesday after closing at $112.06, was last around $109.26 on volume of ~8.64 million shares and is down roughly 4% intraday.
• Analyst consensus: Moderate Buy — 20 Buys, 11 Holds and 2 Sells produce a consensus target of $125.16, with individual price targets ranging from $86 (Goldman) to $150 (Evercore).
• Mixed fundamentals and heavy insider selling — the company missed quarterly EPS (‑$0.89 vs. ‑$0.61) despite revenue rising 110% YoY, shows negative margins and high leverage, and insiders/institutions have sold about 15.82 million shares (~$1.63 billion) in the past 90 days even as some large investors increased positions.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $112.06, but opened at $103.60. CoreWeave shares last traded at $109.2590, with a volume of 8,635,639 shares changing hands.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. Evercore restated an "outperform" rating and set a $150.00 price objective on shares of CoreWeave in a report on Wednesday, April 15th. Bank of America upgraded CoreWeave from a "neutral" rating to a "buy" rating and set a $100.00 price target for the company in a report on Tuesday, March 24th. Roth Mkm restated a "buy" rating on shares of CoreWeave in a report on Monday, February 23rd. UBS Group restated a "neutral" rating on shares of CoreWeave in a report on Friday, January 16th. Finally, The Goldman Sachs Group began coverage on CoreWeave in a report on Monday, January 12th. They issued a "neutral" rating and a $86.00 price target for the company. Twenty analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two 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 target price of $125.16.

CoreWeave Stock Down 4.0%

The firm has a market capitalization of $47.65 billion and a P/E ratio of -33.62. The firm's 50-day moving average is $90.92 and its 200 day moving average is $93.09. 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 issued its quarterly earnings results on Thursday, February 26th. The company reported ($0.89) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.61) by ($0.28). CoreWeave had a negative net margin of 22.75% and a negative return on equity of 33.82%. The business had revenue of $1.57 billion during the quarter. The company's revenue for the quarter was up 110.4% compared to the same quarter last year. As a group, equities research analysts predict that CoreWeave Inc. will post -4.16 EPS for the current fiscal year.

Insider Activity at CoreWeave

In other news, insider Brian M. Venturo sold 1,125,000 shares of the business's stock in a transaction dated Monday, April 6th. The shares were sold at an average price of $80.86, for a total transaction of $90,967,500.00. Following the transaction, the insider directly owned 285,327 shares in the company, valued at $23,071,541.22. The trade was a 79.77% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Magnetar Financial Llc sold 1,404,667 shares of the company's stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $118.30, for a total value of $166,172,106.10. Following the completion of the sale, the insider owned 282,570 shares in the company, valued at $33,428,031. This represents a 83.25% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 15,819,326 shares of company stock worth $1,628,389,243 in the last ninety days.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in shares of CoreWeave by 275.6% in the fourth quarter. Vanguard Group Inc. now owns 27,920,979 shares of the company's stock valued at $1,999,421,000 after buying an additional 20,487,478 shares in the last quarter. Proficio Capital Partners LLC lifted its position in CoreWeave by 446,194.0% during the third quarter. Proficio Capital Partners LLC now owns 17,851,760 shares of the company's stock worth $2,443,013,000 after purchasing an additional 17,847,760 shares during the period. Clear Street Group Inc. lifted its position in CoreWeave by 57.2% during the fourth quarter. Clear Street Group Inc. now owns 4,653,815 shares of the company's stock worth $333,260,000 after purchasing an additional 1,692,916 shares during the period. Alyeska Investment Group L.P. lifted its position in CoreWeave by 300.0% during the fourth quarter. Alyeska Investment Group L.P. now owns 4,000,000 shares of the company's stock worth $286,440,000 after purchasing an additional 3,000,000 shares during the period. Finally, Deutsche Bank AG lifted its position in CoreWeave by 22,624.0% during the fourth quarter. Deutsche Bank AG now owns 3,812,856 shares of the company's stock worth $273,039,000 after purchasing an additional 3,796,077 shares during the period.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.