Insider Selling: CoreWeave (NASDAQ:CRWV) CEO Sells $13,324,000.00 in Stock

Key Points

• CoreWeave CEO Michael Intrator sold 200,000 shares for $13.324 million at an average price of $66.62 under a pre-arranged Rule 10b5-1 plan, reducing his stake by 8.07% to 2,276,815 shares.
• CoreWeave shares rose 21.9% to $74.11 in mid-day trading, but the company continues to face significant risks, including a 3.68 debt-to-equity ratio, negative profitability and substantial capital-spending needs.
• Despite rapid revenue growth of 111.6% year over year, CoreWeave missed the latest quarterly EPS estimate; analysts maintain a consensus “Moderate Buy” rating with a $136.25 price target, while some firms recently downgraded the stock to “Hold.”

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) CEO Michael Intrator sold 200,000 shares of the firm's stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $66.62, for a total value of $13,324,000.00. Following the transaction, the chief executive officer owned 2,276,815 shares in the company, valued at approximately $151,681,415.30. This represents a 8.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

CoreWeave Stock Up 21.9%

NASDAQ:CRWV traded up $13.29 during mid-day trading on Thursday, reaching $74.11. The company's stock had a trading volume of 43,937,414 shares, compared to its average volume of 28,311,477. The company has a quick ratio of 0.31, a current ratio of 0.31 and a debt-to-equity ratio of 3.68. CoreWeave Inc. has a 1 year low of $60.55 and a 1 year high of $153.20. The stock has a fifty day moving average of $94.92 and a 200-day moving average of $95.20. The firm has a market capitalization of $33.17 billion, a PE ratio of -23.83 and a beta of 7.17.

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

More CoreWeave News

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: Defense and intelligence partnership: CoreWeave is teaming with Leidos to provide secure, sovereign AI-cloud infrastructure for U.S. defense, national security and intelligence agencies. Leidos will handle mission integration and secure architecture, while CoreWeave supplies its AI-native cloud platform. The agreement could expand CoreWeave’s addressable market and support demand for classified-data-center capacity. Leidos and CoreWeave collaboration announcement
• Positive Sentiment: Revenue outlook and customer demand: Oppenheimer expects second-quarter revenue near the high end of CoreWeave’s $2.45 billion–$2.60 billion guidance. Separately, Meta could commit as much as $35.2 billion under existing and expanded agreements with CoreWeave, reinforcing the company’s contracted-demand story, although Meta may eventually compete with its cloud suppliers. CoreWeave Q2 revenue outlook
• Positive Sentiment: Sector rebound: CoreWeave joined a sharp recovery in AI-infrastructure stocks, with investors rotating back into high-growth “neocloud” companies after the recent selloff. AI cloud stocks rebound
• Neutral Sentiment: High volatility and earnings focus: CRWV remains well below its 52-week high, with investors awaiting the company’s upcoming earnings report for evidence that rapid revenue growth is translating into improving margins and cash flow.
• Negative Sentiment: Debt and default concerns: Reports that CoreWeave’s credit-default-swap market implies roughly 50% default odds have renewed scrutiny of its GPU-financing model. Analysts also point to heavy capital spending, substantial debt and weak profitability as risks to future returns. CoreWeave credit risk report
• Negative Sentiment: Insider selling: Director Brannin McBee sold 250,000 shares worth approximately $17.8 million under a pre-arranged Rule 10b5-1 plan, adding to investor concerns even though the transactions were scheduled in advance.

Institutional Trading of CoreWeave

Several large investors have recently made changes to their positions in the business. Vanguard Group Inc. boosted its holdings in CoreWeave by 275.6% in 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. Proficio Capital Partners LLC raised its position in CoreWeave by 446,194.0% during the third quarter. Proficio Capital Partners LLC now owns 17,851,760 shares of the company's stock valued at $2,443,013,000 after acquiring an additional 17,847,760 shares in the last quarter. Bank of America Corp DE lifted its holdings in CoreWeave by 13.1% in the first quarter. Bank of America Corp DE now owns 5,652,129 shares of the company's stock valued at $437,870,000 after acquiring an additional 653,398 shares during the period. Clear Street Group Inc. grew its stake in shares of CoreWeave by 57.2% during the 4th quarter. Clear Street Group Inc. now owns 4,653,815 shares of the company's stock worth $333,260,000 after purchasing an additional 1,692,916 shares during the period. Finally, Alyeska Investment Group L.P. increased its holdings in shares of CoreWeave by 300.0% during the 4th quarter. Alyeska Investment Group L.P. now owns 4,000,000 shares of the company's stock valued at $286,440,000 after purchasing an additional 3,000,000 shares in the last quarter.

Wall Street Analyst Weigh In

Several brokerages have issued reports on CRWV. Rosenblatt Securities reaffirmed a "buy" rating and set a $250.00 target price on shares of CoreWeave in a research report on Thursday, July 2nd. Wolfe Research reaffirmed an "outperform" rating on shares of CoreWeave in a research report on Monday, July 6th. Wells Fargo & Company lifted their target price on CoreWeave from $135.00 to $155.00 and gave the company an "overweight" rating in a research note on Friday, May 8th. Raymond James Financial downgraded shares of CoreWeave from a "moderate buy" rating to a "hold" rating in a report on Wednesday, July 22nd. Finally, Citigroup cut shares of CoreWeave from a "buy" rating to a "hold" rating in a report on Wednesday, July 22nd. One investment 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 given a Sell rating to the company. Based on data from MarketBeat, CoreWeave presently has a consensus rating of "Moderate Buy" and a consensus price target of $136.25.

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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