CoreWeave (NASDAQ:CRWV) Shares Down 8.6% - Should You Sell?

Key Points

• CoreWeave's stock experienced a significant drop of 8.6%, trading as low as $93.41, amidst reduced trading volume down 42% from the average.
• Wall Street analysts have mixed views on CoreWeave, with the consensus rating at "Hold" and a target price of $107.45, despite some brokerages upgrading their ratings.
• Insiders sold a substantial amount of stock recently, with over 5 million shares sold by insiders, indicating potential concerns about the company's outlook.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report)'s stock price dropped 8.6% during trading on Tuesday . The stock traded as low as $93.41 and last traded at $94.23. Approximately 11,823,264 shares changed hands during mid-day trading, a decline of 42% from the average daily volume of 20,510,623 shares. The stock had previously closed at $103.04.

Analyst Ratings Changes

A number of research firms have weighed in on CRWV. Stifel Nicolaus lifted their price objective on CoreWeave from $115.00 to $120.00 and gave the company a "hold" rating in a research note on Wednesday, August 13th. The Goldman Sachs Group lifted their price target on CoreWeave from $54.00 to $61.00 and gave the company a "neutral" rating in a research report on Friday, May 16th. Hsbc Global Res upgraded CoreWeave to a "moderate sell" rating in a research report on Thursday, July 17th. Moffett Nathanson raised their price objective on shares of CoreWeave from $56.00 to $65.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 19th. Finally, JPMorgan Chase & Co. boosted their target price on shares of CoreWeave from $43.00 to $66.00 and gave the company an "overweight" rating in a research note on Friday, May 16th. Two research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, fifteen have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, CoreWeave currently has an average rating of "Hold" and an average target price of $107.45.

CoreWeave Stock Down 2.7%

The company has a quick ratio of 0.52, a current ratio of 0.52 and a debt-to-equity ratio of 2.79. The firm has a 50 day simple moving average of $120.56.

CoreWeave (NASDAQ:CRWV - Get Free Report) last announced its quarterly earnings results on Tuesday, August 12th. The company reported ($0.27) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.20) by ($0.07). The firm had revenue of $1.21 million for the quarter. The company's revenue for the quarter was up 206.7% on a year-over-year basis. CoreWeave has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS.

Insider Activity

In related news, major shareholder Magnetar Financial Llc sold 80,820 shares of the stock in a transaction on Friday, August 29th. The stock was sold at an average price of $102.38, for a total value of $8,274,351.60. Following the transaction, the insider owned 393,046 shares of the company's stock, valued at $40,240,049.48. This represents a 17.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, SVP Chen Goldberg sold 56,294 shares of CoreWeave stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $93.17, for a total value of $5,244,911.98. Following the sale, the senior vice president directly owned 18,764 shares of the company's stock, valued at $1,748,241.88. This trade represents a 75.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 7,471,406 shares of company stock worth $722,416,182.

Institutional Investors Weigh In On CoreWeave

Hedge funds and other institutional investors have recently made changes to their positions in the business. Gamco Investors INC. ET AL acquired a new position in CoreWeave in the first quarter valued at approximately $318,000. Western Pacific Wealth Management LP purchased a new stake in shares of CoreWeave during the 2nd quarter worth approximately $82,000. RFG Holdings Inc. purchased a new position in shares of CoreWeave during the 2nd quarter worth approximately $1,450,000. Aua Capital Management LLC acquired a new stake in shares of CoreWeave in the 2nd quarter valued at approximately $397,000. Finally, Sivia Capital Partners LLC purchased a new stake in shares of CoreWeave in the second quarter valued at approximately $39,824,000.

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.