CoreWeave (NASDAQ:CRWV) Trading Down 7% - Here's What Happened

Key Points

• CoreWeave shares fell about 7% intraday, trading as low as $73.22 and last at $74.81 on Friday with 21.67 million shares changing hands, roughly 16% below average session volume.
• Quarterly results missed expectations: the company reported ($0.89) EPS versus ($0.61) expected while revenue surged 110.4% to $1.57 billion, but profitability remains negative (net margin -22.75%, ROE -33.82%) and leverage is high (debt/equity 4.46).
• Significant insider selling: CEO Michael Intrator sold 111,427 shares and insiders have sold 4,672,229 shares (about $397 million) over the last 90 days, even as analysts' consensus is a "Moderate Buy" with an average target of $121.06.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report)'s share price traded down 7% during mid-day trading on Friday . The company traded as low as $73.22 and last traded at $74.81. 21,673,449 shares were traded during mid-day trading, a decline of 16% from the average session volume of 25,919,639 shares. The stock had previously closed at $80.45.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on CRWV shares. Mizuho reduced their price target on shares of CoreWeave from $100.00 to $95.00 and set a "neutral" rating on the stock in a research report on Friday, February 27th. The Goldman Sachs Group assumed coverage on shares of CoreWeave in a research report on Monday, January 12th. They set a "neutral" rating and a $86.00 price objective for the company. Macquarie Infrastructure reiterated a "neutral" rating and set a $115.00 price objective on shares of CoreWeave in a research note on Tuesday, January 27th. Needham & Company LLC reissued a "hold" rating on shares of CoreWeave in a report on Friday, February 27th. Finally, Barclays decreased their target price on CoreWeave from $120.00 to $90.00 and set an "equal weight" rating for the company in a research note on Monday, January 12th. Nineteen investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, CoreWeave has a consensus rating of "Moderate Buy" and an average target price of $121.06.

CoreWeave Trading Down 7.0%

The firm has a market capitalization of $31.35 billion and a P/E ratio of -23.38. The business's 50 day moving average is $88.78 and its two-hundred day moving average is $97.43. The company has a quick ratio of 0.46, a current ratio of 0.46 and a debt-to-equity ratio of 4.46.

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 analysts' consensus estimates 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 firm had revenue of $1.57 billion for the quarter. CoreWeave's revenue for the quarter was up 110.4% compared to the same quarter last year.

Insider Transactions at CoreWeave

In other CoreWeave news, CEO Michael N. Intrator sold 111,427 shares of CoreWeave stock in a transaction that occurred on Wednesday, December 31st. The shares were sold at an average price of $72.39, for a total transaction of $8,066,200.53. Following the transaction, the chief executive officer directly owned 5,922,620 shares in the company, valued at approximately $428,738,461.80. The trade was a 1.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Brian M. Venturo sold 281,250 shares of CoreWeave stock in a transaction on Wednesday, January 21st. The shares were sold at an average price of $91.77, for a total value of $25,810,312.50. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 4,672,229 shares of company stock valued at $397,217,755 over the last ninety days.

Hedge Funds Weigh In On CoreWeave

Hedge funds have recently added to or reduced their stakes in the company. Cornerstone Planning Group LLC grew its position in CoreWeave by 272.8% in the fourth quarter. Cornerstone Planning Group LLC now owns 343 shares of the company's stock worth $25,000 after acquiring an additional 251 shares in the last quarter. Family Legacy Financial Solutions LLC raised its holdings in shares of CoreWeave by 166.7% during the 3rd quarter. Family Legacy Financial Solutions LLC now owns 200 shares of the company's stock valued at $27,000 after purchasing an additional 125 shares in the last quarter. HighMark Wealth Management LLC acquired a new stake in shares of CoreWeave in the 3rd quarter valued at $27,000. OLD Second National Bank of Aurora acquired a new stake in shares of CoreWeave in the 3rd quarter valued at $27,000. Finally, KERR FINANCIAL PLANNING Corp bought a new stake in CoreWeave in the third quarter worth $27,000.

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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