CoreWeave (NASDAQ:CRWV) Trading Down 1.9% - Here's Why

Key Points

• CoreWeave shares fell 1.9% on Thursday, trading as low as $80.55 amid lighter-than-usual volume of about 17.9 million shares, below the stock’s average session volume.
• Analyst sentiment remains broadly positive, with Robert W. Baird upgrading the stock to strong-buy and Truist raising it to buy, though Barclays reportedly lowered its price expectations and Mizuho cut its target to $100.
• Insider selling and mixed fundamentals are weighing on sentiment: the CFO sold about $5.5 million in shares, and the company recently missed earnings estimates even as revenue jumped 111.6% year over year.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) fell 1.9% during mid-day trading on Thursday . The stock traded as low as $80.55 and last traded at $81.10. Approximately 17,876,034 shares were traded during trading, a decline of 37% from the average session volume of 28,216,582 shares. The stock had previously closed at $82.64.

Key Stories Impacting CoreWeave

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: Robert W. Baird upgraded CoreWeave to “strong-buy,” adding to the recent stream of favorable analyst calls that may support sentiment. Read More
• Positive Sentiment: Truist also raised CoreWeave to buy, and the stock has been reacting positively to the fresh endorsement as investors focus on its AI infrastructure growth story. CoreWeave Jumps 6% on Truist Buy Upgrade, Pulling Ahead of Cloudflare, Snowflake, Oracle
• Positive Sentiment: Baird initiated CoreWeave with an outperform rating, while another recent article highlighted renewed Wall Street optimism and a new positive rating after a weak stretch for the shares. CoreWeave (CRWV) Is Chasing 108% Q2 Revenue Growth With A Big Power Ramp
• Neutral Sentiment: CoreWeave’s CFO sold about $5.5 million of company shares, which can raise some investor caution but does not necessarily signal a change in the company’s fundamentals. CoreWeave's CFO Sold Company Shares for $5.5 Million. What Does That Mean for Investors?
• Neutral Sentiment: Barclays reportedly lowered its expectations for CoreWeave’s stock price, providing a counterpoint to the bullish ratings and suggesting some analysts see more limited upside. Barclays Has Lowered Expectations for CoreWeave NASDAQ: CRWV Stock Price

Analyst Ratings Changes

Several equities analysts have recently issued reports on CRWV shares. Rosenblatt Securities restated a "buy" rating and set a $250.00 target price on shares of CoreWeave in a report on Thursday, July 2nd. Mizuho decreased their target price on shares of CoreWeave from $110.00 to $100.00 and set a "neutral" rating for the company in a report on Wednesday, July 15th. Oppenheimer increased their price target on shares of CoreWeave from $140.00 to $150.00 and gave the company an "outperform" rating in a report on Wednesday, April 29th. TD Cowen raised shares of CoreWeave to a "buy" rating in a research report on Wednesday. Finally, Weiss Ratings upgraded shares of CoreWeave from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, June 24th. One analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $136.25.

CoreWeave Price Performance

The company has a current ratio of 0.31, a quick ratio of 0.31 and a debt-to-equity ratio of 3.68. The firm has a 50 day moving average of $98.41 and a 200-day moving average of $95.46. The company has a market cap of $36.30 billion, a P/E ratio of -26.08 and a beta of 7.17.

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

Insider Buying and Selling at CoreWeave

In related news, major shareholder Magnetar Financial Llc sold 1,284,876 shares of the company's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $119.91, for a total value of $154,069,481.16. Following the completion of the transaction, the insider owned 264,061 shares of the company's stock, valued at approximately $31,663,554.51. This represents a 82.95% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Jack D. Cogen sold 986,540 shares of the firm's stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $107.80, for a total transaction of $106,349,012.00. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 17,072,869 shares of company stock valued at $1,983,274,420. Corporate insiders own 24.20% of the company's stock.

Institutional Investors Weigh In On CoreWeave

Institutional investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its holdings in shares of CoreWeave by 275.6% in the 4th quarter. Vanguard Group Inc. now owns 27,920,979 shares of the company's stock valued at $1,999,421,000 after purchasing an additional 20,487,478 shares during the last quarter. Proficio Capital Partners LLC grew its stake in CoreWeave by 446,194.0% during the 3rd quarter. Proficio Capital Partners LLC now owns 17,851,760 shares of the company's stock worth $2,443,013,000 after buying an additional 17,847,760 shares during the last quarter. Deutsche Bank AG raised its holdings in shares of CoreWeave by 22,624.0% in the fourth quarter. Deutsche Bank AG now owns 3,812,856 shares of the company's stock valued at $273,039,000 after buying an additional 3,796,077 shares during the last quarter. Altimeter Capital Management LP acquired a new stake in CoreWeave during the 4th quarter worth approximately $230,099,000. Finally, Alyeska Investment Group L.P. lifted its position in CoreWeave by 300.0% during the 4th quarter. Alyeska Investment Group L.P. now owns 4,000,000 shares of the company's stock worth $286,440,000 after acquiring an additional 3,000,000 shares during the period.

About CoreWeave

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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