CoreWeave Inc. $CRWV is Alyeska Investment Group L.P.'s 2nd Largest Position

Key Points

• Alyeska Investment Group increased its CoreWeave stake by 55.7% in the second quarter to 10.9 million shares worth approximately $1.08 billion, making CRWV its second-largest portfolio holding. Several other hedge funds also initiated positions.
• CoreWeave reported 112.5% year-over-year revenue growth to $2.58 billion and a narrower-than-expected adjusted loss, but remains unprofitable and highly leveraged, with a 5.53 debt-to-equity ratio and analysts forecasting a full-year loss.
• Insiders have sold heavily, including CEO Michael Intrator and major shareholder Magnetar Financial, with total insider sales reaching about $735 million over the past 90 days. Analysts remain mixed, though the overall consensus is “Moderate Buy” with an average price target of $141.90.

Alyeska Investment Group L.P. boosted its position in shares of CoreWeave Inc. (NASDAQ:CRWV - Free Report) by 55.7% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 10,891,267 shares of the company's stock after buying an additional 3,897,741 shares during the period. CoreWeave accounts for about 2.8% of Alyeska Investment Group L.P.'s portfolio, making the stock its 2nd largest holding. Alyeska Investment Group L.P. owned 2.37% of CoreWeave worth $1,084,117,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in CRWV. Sivia Capital Partners LLC purchased a new stake in shares of CoreWeave during the second quarter worth approximately $39,824,000. Quantbot Technologies LP acquired a new position in CoreWeave during the second quarter worth about $311,000. Invesco Ltd. purchased a new position in shares of CoreWeave during the 2nd quarter worth $882,000. First Trust Advisors LP purchased a new position in shares of CoreWeave during the 2nd quarter worth $20,260,000. Finally, Baird Financial Group Inc. acquired a new position in shares of CoreWeave during the 2nd quarter valued at about $455,000.

Insider Buying and Selling

In other CoreWeave news, CEO Michael N. Intrator sold 278,560 shares of the business's stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $97.43, for a total value of $27,140,100.80. Following the completion of the sale, the chief executive officer owned 3,138,612 shares in the company, valued at approximately $305,794,967.16. The trade was a 8.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, major shareholder Magnetar Financial Llc sold 307,131 shares of the business's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $108.75, for a total value of $33,400,496.25. Following the completion of the sale, the insider owned 220,810 shares of the company's stock, valued at approximately $24,013,087.50. This represents a 58.18% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 7,701,466 shares of company stock worth $735,324,843 in the last 90 days. 24.20% of the stock is currently owned by company insiders.

Key CoreWeave News

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: CoreWeave is being integrated into Rescale’s AI cloud platform, extending its reach into engineering, simulation, research and development, and other enterprise workloads. The partnership could broaden customer adoption and improve utilization of CoreWeave’s GPU infrastructure. CoreWeave Enters Next Generation Engineering AI Workloads
• Positive Sentiment: Truist said NVIDIA’s reported 17% GPU price increase may not materially damage CoreWeave’s margins. Strong AI demand, customer pricing power, and contract structures could allow CoreWeave to pass through higher equipment costs, supporting the firm’s bullish outlook. NVIDIA’s GPU Price Hikes Look Bad for CoreWeave
• Neutral Sentiment: CoreWeave’s latest results showed revenue growth of 112.5% year over year to $2.58 billion, while adjusted losses were narrower than analysts expected. However, the company remains unprofitable, with analysts forecasting a full-year loss, and carries a debt-to-equity ratio of 5.53. Analyst opinions are mixed, although the consensus rating remains “Moderate Buy.”
• Negative Sentiment: CEO Michael Intrator sold 307,692 shares worth approximately $27.3 million, while CFO Nitin Agrawal sold about $488,000. The transactions were made under pre-arranged Rule 10b5-1 plans, which limits their value as a signal of current management sentiment, but the combined sales add near-term supply and investor concern. CoreWeave Insider Selling
• Negative Sentiment: Investors continue to debate whether rising GPU costs, potential future price competition among “neocloud” providers, and CoreWeave’s substantial debt will limit profitability. Those risks are particularly important because the company is investing heavily to expand capacity despite negative earnings and weak liquidity ratios.

CoreWeave Stock Performance

NASDAQ:CRWV opened at $84.23 on Friday. The firm has a market capitalization of $38.65 billion, a PE ratio of -23.08 and a beta of 7.44. The business's fifty day moving average price is $87.16 and its 200 day moving average price is $94.80. The company has a debt-to-equity ratio of 5.53, a current ratio of 0.46 and a quick ratio of 0.46. CoreWeave Inc. has a 12 month low of $60.55 and a 12 month high of $153.20.

CoreWeave (NASDAQ:CRWV - Get Free Report) last announced its quarterly earnings results on Tuesday, August 11th. The company reported ($1.14) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($1.52) by $0.38. CoreWeave had a negative return on equity of 47.95% and a negative net margin of 25.41%.The company had revenue of $2.58 billion during the quarter. During the same period last year, the firm earned ($0.27) earnings per share. The firm's quarterly revenue was up 112.5% on a year-over-year basis. On average, sell-side analysts anticipate that CoreWeave Inc. will post -5.19 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities research analysts have issued reports on CRWV shares. Roth Capital set a $145.00 target price on CoreWeave in a research note on Thursday, August 13th. UBS Group reiterated an "underperform" rating on shares of CoreWeave in a report on Wednesday, August 12th. DA Davidson reissued a "neutral" rating and issued a $100.00 target price (down from $175.00) on shares of CoreWeave in a research report on Monday, May 18th. Sanford C. Bernstein upped their price target on CoreWeave from $67.00 to $74.00 and gave the stock an "underperform" rating in a research note on Wednesday, August 12th. Finally, Raymond James Financial cut shares of CoreWeave from a "moderate buy" rating to a "hold" rating in a research report on Wednesday, July 22nd. Twenty-one analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $141.90.

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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