CoreWeave (NASDAQ:CRWV) Sees Strong Trading Volume After Analyst Upgrade

Key Points

• CoreWeave shares rose 3.5% to about $63.29 amid unusually heavy trading volume after Sanford C. Bernstein upgraded the stock from “strong sell” to “hold.”
• Analyst sentiment is broadly positive, with 25 Buy, eight Hold and three Sell ratings producing a “Moderate Buy” consensus and a $132.40 average price target. Recent results included $2.58 billion in revenue, up 112.5% year over year, and a narrower-than-expected quarterly loss.
• Financial and insider-selling risks remain significant: CoreWeave has a 5.53 debt-to-equity ratio, a 0.46 current ratio and roughly $472 million in insider sales over the past 90 days, while bearish analysts continue to warn about debt, interest costs and refinancing pressure.

Shares of CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) saw unusually-high trading volume on Tuesday after Sanford C. Bernstein upgraded the stock from a strong sell rating to a hold rating. 30,608,834 shares were traded during trading, an increase of 2% from the previous session's volume of 29,923,797 shares. The stock last traded at $63.2930 and had previously closed at $61.12.

Several other equities research analysts have also recently commented on the stock. Citigroup upped their target price on shares of CoreWeave from $142.00 to $159.00 and gave the stock a "buy" rating in a research note on Friday, August 14th. Wolfe Research reiterated an "outperform" rating on shares of CoreWeave in a report on Monday, July 6th. Moffett Nathanson set a $89.00 price target on CoreWeave in a research note on Monday. Robert W. Baird boosted their price target on CoreWeave from $100.00 to $130.00 and gave the company an "outperform" rating in a report on Wednesday, August 12th. Finally, JPMorgan Chase & Co. upgraded CoreWeave from a "neutral" rating to an "overweight" rating and boosted their price target for the company from $120.00 to $125.00 in a report on Thursday, September 24th. Twenty-five equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, CoreWeave has a consensus rating of "Moderate Buy" and a consensus target price of $132.40.

Insider Activity

In related news, CFO Nitin Agrawal sold 22,579 shares of CoreWeave stock in a transaction dated Monday, October 12th. The stock was sold at an average price of $80.13, for a total value of $1,809,255.27. Following the sale, the chief financial officer owned 110,017 shares of the company's stock, valued at approximately $8,815,662.21. The trade was a 17.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Brian M. Venturo sold 65,616 shares of CoreWeave stock in a transaction dated Wednesday, September 30th. The shares were sold at an average price of $87.69, for a total value of $5,753,867.04. Following the completion of the sale, the insider directly owned 302,526 shares in the company, valued at approximately $26,528,504.94. This represents a 17.82% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 5,352,578 shares of company stock worth $471,777,344. 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: Goldman Sachs upgraded CoreWeave to Buy and cited strong contract economics, resilient demand and potential upside to a $106 price target. The upgrade helped support the stock after its recent selloff. Goldman Sachs upgrade article
• Positive Sentiment: CoreWeave reported second-quarter revenue of approximately $2.58 billion, up 112% year over year, while its loss per share was narrower than analysts expected. Supporters argue that permitted, powered data centers and a large backlog give the company a valuable position in the AI infrastructure buildout. AI infrastructure demand article
• Positive Sentiment: ARK Investment Management purchased 132,498 CoreWeave shares across two ETFs, signaling continued confidence from a prominent growth investor despite the market turmoil. ARK CoreWeave purchase article
• Neutral Sentiment: J.P. Morgan said the selloff in CoreWeave’s debt poses limited systemic risk to global banks. That may reduce broader financial-contagion concerns, but it does not resolve CoreWeave’s own financing challenges. J.P. Morgan debt-risk article
• Negative Sentiment: HSBC reiterated its bearish view, warning that earnings estimates are excessively optimistic and assigning significant downside based on debt and interest-cost risks. Rising bond yields have intensified investor concerns about CoreWeave’s ability to fund its aggressive expansion. HSBC CoreWeave earnings estimates article
• Negative Sentiment: CoreWeave carries roughly $35 billion of debt, a debt-to-equity ratio of 5.53 and a current ratio of 0.46. With bond yields reportedly approaching distressed levels, investors fear higher refinancing costs and slower progress toward profitability. HSBC downside article

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Alyeska Investment Group L.P. lifted its position in CoreWeave by 55.7% during the second quarter. Alyeska Investment Group L.P. now owns 10,891,267 shares of the company's stock worth $1,084,117,000 after purchasing an additional 3,897,741 shares during the period. State Street Corp lifted its position in shares of CoreWeave by 139.7% during the 2nd quarter. State Street Corp now owns 7,058,846 shares of the company's stock worth $702,638,000 after buying an additional 4,113,873 shares during the last quarter. Bank of America Corp DE lifted its position in shares of CoreWeave by 13.1% during the 1st quarter. Bank of America Corp DE now owns 5,652,129 shares of the company's stock worth $437,870,000 after buying an additional 653,398 shares during the last quarter. Amundi boosted its stake in CoreWeave by 266.2% in the first quarter. Amundi now owns 3,284,121 shares of the company's stock valued at $254,421,000 after buying an additional 2,387,337 shares in the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. boosted its stake in CoreWeave by 32.7% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,626,870 shares of the company's stock valued at $126,034,000 after buying an additional 401,000 shares in the last quarter.

CoreWeave Stock Up 3.5%

The company has a quick ratio of 0.46, a current ratio of 0.46 and a debt-to-equity ratio of 5.53. The firm has a 50 day moving average of $86.47 and a two-hundred day moving average of $94.48. The firm has a market capitalization of $29.03 billion, a price-to-earnings ratio of -17.25 and a beta of 7.36.

CoreWeave (NASDAQ:CRWV - Get Free Report) last issued its earnings results on Tuesday, August 11th. The company reported ($1.14) EPS for the quarter, topping the consensus estimate 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 firm had revenue of $2.58 billion during the quarter. During the same period in the previous year, the firm posted ($0.27) EPS. The firm's revenue was up 112.5% compared to the same quarter last year. As a group, sell-side analysts anticipate that CoreWeave Inc. will post -5.19 EPS for the current fiscal year.

About CoreWeave

CoreWeave, Inc is a specialized cloud computing company that provides infrastructure designed for artificial intelligence (AI), machine learning, and other high-performance computing workloads. Its platform gives customers access to accelerated computing resources, including graphics processing units (GPUs), along with the networking, storage, and software tools needed to develop, train, and deploy demanding applications.

The company offers cloud services for AI model training and inference, visual effects and rendering, scientific computing, and other data-intensive workloads.

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