First Trust Advisors LP Sells 541,996 Shares of CoreWeave Inc. $CRWV

Key Points

• First Trust Advisors LP cut its CoreWeave stake by 23.7% in the first quarter, selling 541,996 shares and leaving it with 1,743,997 shares worth about $135.1 million.
• CoreWeave has recently seen a wave of bullish analyst upgrades, including Truist’s move to Buy and Robert W. Baird’s upgrade to Strong-Buy, as firms cite its rapid AI cloud growth and infrastructure buildout.
• Despite strong revenue growth, CoreWeave still reported a larger-than-expected loss in its latest quarter, while insider selling by executives and a hefty leverage profile may temper some investor enthusiasm.

First Trust Advisors LP lessened its position in CoreWeave Inc. (NASDAQ:CRWV - Free Report) by 23.7% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,743,997 shares of the company's stock after selling 541,996 shares during the quarter. First Trust Advisors LP owned about 0.39% of CoreWeave worth $135,107,000 at the end of the most recent quarter.

A number of other hedge funds also recently bought and sold shares of the company. Parallel Advisors LLC increased its stake in shares of CoreWeave by 4.0% in the first quarter. Parallel Advisors LLC now owns 2,340 shares of the company's stock worth $181,000 after purchasing an additional 91 shares during the period. Azzad Asset Management Inc. ADV boosted its stake in CoreWeave by 2.1% during the 1st quarter. Azzad Asset Management Inc. ADV now owns 5,020 shares of the company's stock valued at $389,000 after purchasing an additional 104 shares during the period. Hazlett Burt & Watson Inc. boosted its stake in CoreWeave by 34.7% during the 4th quarter. Hazlett Burt & Watson Inc. now owns 462 shares of the company's stock valued at $33,000 after purchasing an additional 119 shares during the period. Cullen Frost Bankers Inc. grew its holdings in CoreWeave by 45.8% in the 4th quarter. Cullen Frost Bankers Inc. now owns 385 shares of the company's stock valued at $28,000 after buying an additional 121 shares during the last quarter. Finally, Parkside Financial Bank & Trust grew its holdings in CoreWeave by 26.3% in the 4th quarter. Parkside Financial Bank & Trust now owns 600 shares of the company's stock valued at $43,000 after buying an additional 125 shares during the last quarter.

Key Stories Impacting CoreWeave

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: Truist upgraded CoreWeave (CRWV) to Buy, helping drive the shares higher as investors responded to renewed confidence in the company’s AI cloud growth story. CoreWeave Jumps 6% on Truist Buy Upgrade, Pulling Ahead of Cloudflare, Snowflake, Oracle
• Positive Sentiment: Robert W. Baird upgraded CoreWeave (CRWV) to Strong-Buy, reinforcing the bullish view that the company remains a standout “pioneer” in AI infrastructure. CoreWeave was upgraded by Robert W. Baird to strong-buy
• Positive Sentiment: Analysts highlighted CoreWeave’s rapid growth profile, including expectations for strong Q2 revenue expansion and heavy power buildout to support AI demand, which supports the stock’s premium valuation. CoreWeave (CRWV) Is Chasing 108% Q2 Revenue Growth With A Big Power Ramp
• Neutral Sentiment: Barclays reportedly lowered its expectations for CoreWeave (CRWV), which may temper some of the enthusiasm around the stock despite the broader wave of positive ratings. Barclays Has Lowered Expectations for CoreWeave NASDAQ: CRWV Stock Price
• Negative Sentiment: News that CoreWeave’s CFO sold $5.5 million of company shares could raise investor concerns about insider confidence, even though it does not necessarily change the business outlook. CoreWeave's CFO Sold Company Shares for $5.5 Million. What Does That Mean for Investors?

CoreWeave Price Performance

Shares of CoreWeave stock opened at $81.10 on Friday. 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 firm's 50-day simple moving average is $97.75 and its 200-day simple moving average is $95.47. CoreWeave Inc. has a twelve month low of $63.80 and a twelve month high of $153.20. The firm 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 posted its quarterly 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). The business 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 firm's quarterly revenue was up 111.6% on a year-over-year basis. During the same period in the previous year, the business earned ($0.60) earnings per share. As a group, research analysts expect that CoreWeave Inc. will post -4.57 EPS for the current fiscal year.

Insider Activity

In related news, insider Brian M. Venturo sold 76,912 shares of the business's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $86.99, for a total value of $6,690,574.88. Following the sale, the insider owned 283,985 shares of the company's stock, valued at $24,703,855.15. The trade was a 21.31% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available 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, CEO Michael N. Intrator sold 61,797 shares of the company's stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $86.94, for a total value of $5,372,631.18. Following the completion of the sale, the chief executive officer owned 2,876,815 shares in the company, valued at $250,110,296.10. This trade represents a 2.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 17,070,099 shares of company stock worth $1,982,943,238. Company insiders own 24.20% of the company's stock.

Analysts Set New Price Targets

CRWV has been the subject of a number of research analyst reports. Wells Fargo & Company upped their price target on CoreWeave from $135.00 to $155.00 and gave the stock an "overweight" rating in a report on Friday, May 8th. Sanford C. Bernstein started coverage on shares of CoreWeave in a research report on Wednesday. They set an "outperform" rating on the stock. Robert W. Baird began coverage on shares of CoreWeave in a research note on Tuesday. They set an "outperform" rating and a $100.00 target price for the company. BNP Paribas Exane started coverage on shares of CoreWeave in a report on Tuesday, June 2nd. They issued an "outperform" rating and a $192.00 price target for the company. Finally, Weiss Ratings upgraded shares of CoreWeave from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, June 24th. One research 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 issued a Sell rating to the company's stock. According to data from MarketBeat.com, CoreWeave presently has an average rating of "Moderate Buy" and a consensus price target of $136.25.

CoreWeave Company Profile

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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