CoreWeave (NASDAQ:CRWV) Shares Climb 1.7% on Analyst Upgrade

Key Points

• CoreWeave shares rose 1.7% to $62.13 after Bernstein upgraded the stock from “strong sell” to “hold”; trading volume reached nearly 91 million shares, about three times the average.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and a $132.40 average price target. Goldman Sachs separately upgraded CoreWeave to “buy” with a $106 target, while other ratings range from sell to buy.
• CoreWeave’s revenue surged 112.5% year over year to $2.58 billion, but concerns persist over its roughly $35 billion debt load, negative profitability and rising financing costs; insiders sold more than $471 million of shares over the past 90 days.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) rose 1.7% on Tuesday after Sanford C. Bernstein upgraded the stock from a strong sell rating to a hold rating. The stock traded as high as $64.39 and last traded at $62.13. Approximately 90,654,998 shares were traded during trading, an increase of 199% from the average daily volume of 30,282,393 shares. The stock had previously closed at $61.12.

Other equities analysts have also issued reports about the stock. The Goldman Sachs Group upgraded shares of CoreWeave from a "neutral" rating to a "buy" rating and set a $106.00 target price on the stock in a research report on Monday. Rothschild & Co Redburn initiated coverage on shares of CoreWeave in a research note on Monday, September 21st. They set a "sell" rating and a $54.00 price target on the stock. Cantor Fitzgerald reissued an "overweight" rating on shares of CoreWeave in a report on Monday. Rosenblatt Securities restated a "buy" rating and issued a $250.00 price objective on shares of CoreWeave in a research report on Thursday, October 1st. Finally, BTIG Research started coverage on CoreWeave in a report on Wednesday, July 22nd. They set a "buy" rating on the stock. Twenty-five analysts have rated the stock with a Buy rating, eight have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $132.40.

Insider Activity

In other news, CEO Michael N. Intrator sold 200,000 shares of CoreWeave stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $66.62, for a total transaction of $13,324,000.00. Following the completion of the sale, the chief executive officer owned 2,276,815 shares in the company, valued at $151,681,415.30. The trade was a 8.07% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Magnetar Financial Llc sold 307,131 shares of CoreWeave stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $108.75, for a total transaction of $33,400,496.25. Following 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 sold a total of 5,352,578 shares of company stock worth $471,777,344 in the last ninety days. Insiders own 24.20% of the company's stock.

Key CoreWeave News

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: Goldman Sachs upgraded CoreWeave to Buy, citing strong contract economics, a substantial backlog, and the scarcity of permitted and powered data-center capacity. The firm sees significant upside despite reducing its price target to $106. Wired for Upside: Why Goldman Sachs Upgraded CoreWeave's Battered Stock
• Positive Sentiment: Cantor Fitzgerald also maintained a favorable view as CRWV came under pressure, while other analysts argue the selloff has overreacted to financing risks. CoreWeave’s latest quarter showed revenue growth of more than 100%, supporting the long-term AI demand case. Cantor Fitzgerald Gives CoreWeave a Thumbs Up
• Positive Sentiment: ARK Investment Management purchased additional CoreWeave shares, signaling that some growth-focused investors view the decline as a buying opportunity. Nvidia’s strategic relationship with CoreWeave and the broader AI buildout remain important sources of potential demand. ARK Investment Adds CoreWeave
• Neutral Sentiment: J.P. Morgan said the selloff in CoreWeave’s debt poses limited risk to global banks, reducing the likelihood of a broader financial-system shock. However, the company’s upcoming earnings report will be crucial in showing whether revenue growth and operating leverage can cover financing costs. J.P. Morgan on CoreWeave Debt Risks
• Negative Sentiment: CoreWeave’s roughly $35 billion debt load, elevated debt-to-equity ratio, and sharply higher bond yields are raising concerns that interest expense could overwhelm its rapid growth. HSBC reiterated a bearish view and reportedly sees substantial downside, arguing that current earnings estimates are too optimistic. HSBC Warns CoreWeave Estimates Are Too Optimistic
• Negative Sentiment: Broader AI financing and interest-rate fears remain a headwind. Commentary warning that many neocloud providers may not survive if capital spending fails to generate adequate returns is adding pressure to highly leveraged companies such as CoreWeave. Gartner Neocloud Warning

Institutional Trading of CoreWeave

Institutional investors have recently bought and sold shares of the business. Investors Asset Management of Georgia Inc. GA ADV raised its holdings in CoreWeave by 33.9% during the 3rd quarter. Investors Asset Management of Georgia Inc. GA ADV now owns 7,425 shares of the company's stock worth $647,000 after buying an additional 1,880 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd lifted its stake in CoreWeave by 19.4% in the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 57,104 shares of the company's stock valued at $4,975,000 after buying an additional 9,271 shares in the last quarter. IFP Advisors Inc boosted its holdings in shares of CoreWeave by 22.2% in the third quarter. IFP Advisors Inc now owns 11,178 shares of the company's stock valued at $974,000 after buying an additional 2,029 shares during the period. Frank Rimerman Advisors LLC boosted its holdings in shares of CoreWeave by 29.4% in the third quarter. Frank Rimerman Advisors LLC now owns 3,980 shares of the company's stock valued at $347,000 after buying an additional 905 shares during the period. Finally, AlphaStar Capital Management LLC boosted its holdings in shares of CoreWeave by 5.6% in the third quarter. AlphaStar Capital Management LLC now owns 4,914 shares of the company's stock valued at $428,000 after buying an additional 261 shares during the period.

CoreWeave Stock Performance

The stock has a fifty day simple moving average of $86.47 and a 200-day simple moving average of $94.48. The stock has a market cap of $28.51 billion, a P/E ratio of -17.02 and a beta of 7.36. The company has a debt-to-equity ratio of 5.53, a quick ratio of 0.46 and a current ratio of 0.46.

CoreWeave (NASDAQ:CRWV - Get Free Report) last posted its quarterly earnings data 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 net margin of 25.41% and a negative return on equity of 47.95%. The company had revenue of $2.58 billion for the quarter. During the same quarter last year, the business earned ($0.27) earnings per share. CoreWeave's revenue for the quarter was up 112.5% on a year-over-year basis. On average, equities analysts expect that CoreWeave Inc. will post -5.19 earnings per share for the current year.

CoreWeave Company Profile

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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