CoreWeave (NASDAQ:CRWV) Stock Price Down 6.3% - Here's Why

Key Points

• CoreWeave shares fell 6.3% in Monday trading, touching an intraday low of $82.72 before last trading around $83.31, below the prior close of $88.88.
• Despite the drop, several analysts have raised price targets on the stock recently, and the consensus rating remains Moderate Buy with an average target price of $136.73.
• The company posted a larger-than-expected quarterly loss of $1.40 per share, even though revenue rose 111.6% year over year to $2.08 billion; the report also noted significant insider selling in recent months.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report)'s share price dropped 6.3% during mid-day trading on Monday . The company traded as low as $82.72 and last traded at $83.31. 18,459,053 shares traded hands during trading, a decline of 35% from the average session volume of 28,391,191 shares. The stock had previously closed at $88.88.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on CRWV shares. Wells Fargo & Company increased their price target on shares of CoreWeave from $135.00 to $155.00 and gave the stock an "overweight" rating in a research report on Friday, May 8th. Weiss Ratings raised CoreWeave from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, June 24th. Truist Financial lifted their price target on CoreWeave from $85.00 to $131.00 and gave the company a "hold" rating in a research note on Friday, May 8th. Oppenheimer upped their price objective on CoreWeave from $140.00 to $150.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 29th. Finally, Barclays raised their price objective on CoreWeave from $106.00 to $120.00 and gave the company an "equal weight" rating in a research note on Monday, May 11th. Twenty-one research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $136.73.

CoreWeave Trading Down 6.2%

The company has a market cap of $37.30 billion, a price-to-earnings ratio of -26.80 and a beta of 7.17. The business's fifty day moving average price is $105.06 and its 200 day moving average price is $95.35. The company has a debt-to-equity ratio of 3.68, a current ratio of 0.31 and a quick ratio of 0.31.

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

Insider Transactions at CoreWeave

In related news, CEO Michael N. Intrator sold 61,797 shares of the business's stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $86.94, for a total value of $5,372,631.18. Following the transaction, the chief executive officer owned 2,876,815 shares in the company, valued at $250,110,296.10. The trade was a 2.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Brannin Mcbee sold 53,000 shares of the stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $86.13, for a total value of $4,564,890.00. 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 a total of 24,941,871 shares of company stock worth $2,920,484,187 over the last three months. 24.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On CoreWeave

A number of institutional investors and hedge funds have recently modified their holdings of CRWV. Haven Capital Group Inc. acquired a new position in shares of CoreWeave during the 2nd quarter valued at $242,000. Dagco Inc. bought a new stake in CoreWeave in the second quarter valued at $258,000. Fiduciary Financial Group LLC acquired a new position in shares of CoreWeave during the second quarter valued at about $7,298,000. E. Ohman J or Asset Management AB raised its holdings in shares of CoreWeave by 48.5% during the second quarter. E. Ohman J or Asset Management AB now owns 7,040 shares of the company's stock valued at $701,000 after purchasing an additional 2,300 shares during the period. Finally, Bay Rivers Group bought a new position in shares of CoreWeave during the 2nd quarter worth about $255,000.

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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