CoreWeave's (CRWV) Buy Rating Reiterated at Rosenblatt Securities

Key Points

• Rosenblatt Securities reiterated its buy rating on CoreWeave, even as other firms remain mixed on the stock. The overall analyst view is still Moderate Buy with an average price target of $135.
• CoreWeave reported strong revenue growth in its latest quarter, with revenue up 111.6% year over year to $2.08 billion, but it still posted a wider-than-expected loss of $1.40 per share. Analysts expect the company to remain unprofitable this year.
• The stock has faced pressure from heavy insider selling and concerns that major cloud providers could become more direct competitors in AI infrastructure. Despite that, some investors point to CoreWeave’s large AI backlog and continued demand for cloud capacity as signs of underlying strength.

CoreWeave (NASDAQ:CRWV - Get Free Report)'s stock had its "buy" rating reiterated by research analysts at Rosenblatt Securities in a research note issued to investors on Thursday,Benzinga reports.

A number of other research firms have also recently issued reports on CRWV. Weiss Ratings upgraded shares of CoreWeave from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, June 24th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $135.00 target price on shares of CoreWeave in a report on Friday, May 8th. Jefferies Financial Group boosted their price target on CoreWeave from $120.00 to $160.00 and gave the company a "buy" rating in a report on Monday, May 4th. DA Davidson reaffirmed a "neutral" rating and set a $100.00 price target (down from $175.00) on shares of CoreWeave in a research report on Monday, May 18th. Finally, Sanford C. Bernstein reiterated an "underperform" rating on shares of CoreWeave in a report on Thursday, June 11th. Twenty-one analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $135.00.

CoreWeave Stock Performance

NASDAQ:CRWV opened at $85.68 on Thursday. The firm has a market cap of $38.35 billion, a PE ratio of -27.55 and a beta of 7.14. CoreWeave has a fifty-two week low of $63.80 and a fifty-two week high of $166.22. The company has a debt-to-equity ratio of 3.68, a quick ratio of 0.31 and a current ratio of 0.31. The business has a 50 day moving average price of $108.96 and a 200-day moving average price of $94.78.

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

Insider Activity at CoreWeave

In related news, major shareholder Magnetar Financial Llc sold 1,404,667 shares of the stock in a transaction dated Thursday, April 16th. The shares were sold at an average price of $118.30, for a total value of $166,172,106.10. Following the completion of the transaction, the insider directly owned 282,570 shares of the company's stock, valued at $33,428,031. This represents a 83.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Brian M. Venturo sold 1,125,000 shares of the firm's stock in a transaction dated Monday, April 13th. The stock was sold at an average price of $110.82, for a total transaction of $124,672,500.00. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 26,575,216 shares of company stock worth $3,082,804,242 over the last 90 days.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. lifted its holdings in shares of CoreWeave by 275.6% during the fourth 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. Zurcher Kantonalbank Zurich Cantonalbank increased its position in CoreWeave by 6,022.0% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 112,768 shares of the company's stock valued at $8,075,000 after buying an additional 110,926 shares in the last quarter. Legal & General Group Plc raised its stake in CoreWeave by 8,455.6% during the fourth quarter. Legal & General Group Plc now owns 611,301 shares of the company's stock valued at $43,775,000 after buying an additional 604,156 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. raised its stake in CoreWeave by 67.2% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 66,947 shares of the company's stock valued at $4,794,000 after buying an additional 26,907 shares during the last quarter. Finally, Hidden Lake Asset Management LP bought a new stake in CoreWeave in the third quarter worth $14,814,000.

CoreWeave News Summary

Here are the key news stories impacting CoreWeave this week:

• Negative Sentiment: Bloomberg-linked reports that Meta is building out a cloud business and may sell surplus AI compute triggered fears of new competition in the AI infrastructure market, weighing on CoreWeave shares. Stock Market Today, July 1: CoreWeave Stock Tumbles as Meta Cloud Report Raises Customer Concerns
• Negative Sentiment: Bernstein warned that hyperscalers are likely to compete more directly with CoreWeave over time, reinforcing concerns that the company’s business model could face tougher pricing and customer retention pressure. CRWV Stock Draws Investor Buzz As Bernstein Says It’s A Matter Of Time Before Hyperscalers Compete Head-On With CoreWeave
• Negative Sentiment: Multiple insider sales by CoreWeave insider Brannin Mcbee, including a $5.4 million sale on June 30, added to the weak sentiment, even though the transactions were tied to a 10b5-1 plan and tax withholding on equity vesting. Insider Selling: CoreWeave NASDAQ: CRWV Insider Sells $5,426,292.83 in Stock
• Neutral Sentiment: Some commentary argued the selloff may be overdone because CoreWeave still has a large AI backlog and strong demand for its cloud capacity, but that bullish argument has not yet offset the broader risk-off move. CoreWeave (CRWV) Stock May Still Look Cheap Following Record AI Backlog
• Neutral Sentiment: CoreWeave also expanded its Livingston headquarters by 31,000 square feet, a sign of continued business growth, but the news was not enough to change the stock’s direction. CoreWeave Expands HQ with Additional 31,000 SF in Livingston

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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