CoreWeave (NASDAQ:CRWV) Stock Price Down 7.9% After Insider Selling

Key Points

• Shares fell 7.9% to about $72.35 mid-day after heavy insider selling — CFO Nitin Agrawal sold 66,467 shares (~$5.49M), Brian Venturo sold 281,250 shares (~$24.68M) and Brannin McBee sold 63,835 shares (~$5.35M) — while volume rose roughly 27% to ~30.9M shares.
• Analysts are mixed with a MarketBeat consensus of Hold and a $129.47 target; CoreWeave recently beat revenue estimates (Q3 revenue $1.36B, +133.7% y/y) but remains unprofitable (negative EPS) and carries a high debt-to-equity ratio (~2.66) and ~$28B market cap.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) dropped 7.9% during mid-day trading on Monday after an insider sold shares in the company. The stock traded as low as $72.02 and last traded at $72.35. Approximately 30,942,011 shares changed hands during mid-day trading, an increase of 27% from the average daily volume of 24,452,188 shares. The stock had previously closed at $78.59.

Specifically, CFO Nitin Agrawal sold 66,467 shares of the company's stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $82.58, for a total transaction of $5,488,844.86. Following the transaction, the chief financial officer directly owned 203,392 shares of the company's stock, valued at approximately $16,796,111.36. This represents a 24.63% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Brian M. Venturo sold 281,250 shares of the firm's stock in a transaction that occurred on Wednesday, December 10th. The shares were sold at an average price of $87.75, for a total value of $24,679,687.50. Additional details regarding this sale are available in the official SEC disclosure. In other news, insider Brannin Mcbee sold 63,835 shares of the company's stock in a transaction that occurred on Monday, December 8th. The stock was sold at an average price of $83.80, for a total transaction of $5,349,373.00. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.

Analyst Ratings Changes

A number of brokerages have commented on CRWV. Roth Capital began coverage on CoreWeave in a report on Thursday, December 4th. They set a "buy" rating and a $110.00 price objective for the company. Wells Fargo & Company reduced their price objective on CoreWeave from $170.00 to $150.00 and set an "overweight" rating for the company in a report on Wednesday, November 12th. Mizuho lowered their price target on shares of CoreWeave from $150.00 to $120.00 and set a "neutral" rating on the stock in a research report on Tuesday, November 11th. DA Davidson reiterated an "underperform" rating and issued a $36.00 price objective on shares of CoreWeave in a research note on Tuesday, November 11th. Finally, Cantor Fitzgerald restated an "overweight" rating and set a $174.00 target price on shares of CoreWeave in a research report on Wednesday, November 5th. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, twelve have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $129.47.

CoreWeave Price Performance

The business has a 50 day simple moving average of $105.11 and a two-hundred day simple moving average of $119.95. The firm has a market capitalization of $27.96 billion and a P/E ratio of -49.90. The company has a debt-to-equity ratio of 2.66, a quick ratio of 0.49 and a current ratio of 0.49.

CoreWeave (NASDAQ:CRWV - Get Free Report) last issued its quarterly earnings results on Monday, November 10th. The company reported ($0.22) earnings per share (EPS) 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. The business's revenue was up 133.7% compared to the same quarter last year. During the same quarter last year, the business posted ($1.82) EPS.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Family Legacy Financial Solutions LLC lifted its stake in shares of CoreWeave by 166.7% in the 3rd quarter. Family Legacy Financial Solutions LLC now owns 200 shares of the company's stock valued at $27,000 after acquiring an additional 125 shares during the last quarter. HighMark Wealth Management LLC purchased a new position in CoreWeave in the 3rd quarter worth approximately $27,000. OLD Second National Bank of Aurora bought a new stake in CoreWeave in the third quarter valued at approximately $27,000. KERR FINANCIAL PLANNING Corp purchased a new stake in shares of CoreWeave during the third quarter valued at approximately $27,000. Finally, Princeton Global Asset Management LLC bought a new position in shares of CoreWeave in the third quarter worth approximately $28,000.

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.

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