Traders Purchase High Volume of CoreWeave Call Options (NASDAQ:CRWV)

Key Points

• Unusually heavy call-option activity drove attention to CoreWeave, with traders purchasing 256,658 calls—10% above typical volume. The stock rose 15.3% to $103.05 on above-average trading volume.
• CoreWeave reported quarterly revenue of $2.58 billion, up 112.5% year over year, and narrowed its loss relative to analyst expectations, though it remains unprofitable with high leverage and a debt-to-equity ratio of 5.53.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $141.90. However, insiders sold more than 7 million shares worth approximately $649.8 million during the last quarter.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) saw unusually large options trading on Tuesday. Traders purchased 256,658 call options on the stock. This represents an increase of 10% compared to the typical volume of 232,368 call options.

CoreWeave Stock Up 15.3%

Shares of CRWV stock traded up $13.69 on Tuesday, hitting $103.05. 35,298,264 shares of the stock were exchanged, compared to its average volume of 28,160,369. The company has a current ratio of 0.46, a quick ratio of 0.46 and a debt-to-equity ratio of 5.53. The firm has a market capitalization of $47.29 billion, a P/E ratio of -28.26 and a beta of 7.45. The business has a 50-day moving average of $85.20 and a 200 day moving average of $94.37. CoreWeave has a fifty-two week low of $60.55 and a fifty-two week high of $153.20.

CoreWeave (NASDAQ:CRWV - Get Free Report) last announced its earnings results on Tuesday, August 11th. The company reported ($1.14) earnings per share (EPS) for the quarter, beating 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 business had revenue of $2.58 billion for the quarter. During the same period in the prior year, the business posted ($0.27) EPS. The firm's quarterly revenue was up 112.5% compared to the same quarter last year. Equities analysts anticipate that CoreWeave will post -5.19 EPS for the current year.

Insider Buying and Selling

In related news, CEO Michael N. Intrator sold 200,000 shares of the stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $81.66, for a total value of $16,332,000.00. Following the sale, the chief executive officer directly owned 1,287,129 shares in the company, valued at $105,106,954.14. This trade represents a 13.45% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Brannin Mcbee sold 500 shares of the business's stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $85.51, for a total transaction of $42,755.00. Following the transaction, the insider owned 48,000 shares of the company's stock, valued at approximately $4,104,480. This represents a 1.03% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 7,052,467 shares of company stock valued at $649,768,759. Insiders own 24.20% of the company's stock.

Institutional Investors Weigh In On CoreWeave

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Nykredit A S acquired a new position in shares of CoreWeave during the 2nd quarter worth about $7,711,000. Parkside Financial Bank & Trust raised its holdings in CoreWeave by 26.3% during the second quarter. Parkside Financial Bank & Trust now owns 758 shares of the company's stock worth $75,000 after acquiring an additional 158 shares in the last quarter. Corient Private Wealth LP raised its holdings in CoreWeave by 24.8% during the second quarter. Corient Private Wealth LP now owns 13,252 shares of the company's stock worth $1,319,000 after acquiring an additional 2,636 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in CoreWeave during the second quarter valued at approximately $8,669,000. Finally, California State Teachers Retirement System boosted its position in CoreWeave by 12,886.8% during the second quarter. California State Teachers Retirement System now owns 41,559,344 shares of the company's stock valued at $4,136,817,000 after purchasing an additional 41,239,333 shares during the last quarter.

Analysts Set New Price Targets

Several research analysts have weighed in on CRWV shares. JPMorgan Chase & Co. lifted their target price on CoreWeave from $105.00 to $110.00 and gave the stock a "neutral" rating in a report on Tuesday, August 11th. Truist Financial raised their price target on CoreWeave from $155.00 to $165.00 and gave the stock a "buy" rating in a research report on Monday, August 24th. Barclays lifted their price objective on CoreWeave from $90.00 to $105.00 and gave the company an "equal weight" rating in a report on Thursday, August 13th. The Goldman Sachs Group increased their target price on CoreWeave from $121.00 to $139.00 and gave the stock a "neutral" rating in a research note on Friday, August 21st. Finally, Cantor Fitzgerald set a $176.00 price target on shares of CoreWeave and gave the company an "overweight" rating in a research note on Wednesday, August 12th. Twenty-one analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target 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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