CoreWeave (NASDAQ:CRWV) Shares Climb 3.7% After Analyst Upgrade

Key Points

• CoreWeave shares rose 3.7% after JPMorgan upgraded the stock from Neutral to Overweight and raised its price target from $120 to $125.
• Analyst sentiment is broadly positive, with MarketBeat reporting a Moderate Buy consensus and an average price target of $138.78; other firms have issued targets as high as $192.
• Despite strong growth—including a 112.5% year-over-year revenue increase—CoreWeave remains unprofitable and highly leveraged, while insiders sold $561.5 million of stock over the past 90 days.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) shares rose 3.7% during trading on Thursday after JPMorgan Chase & Co. upgraded the stock from a neutral rating to an overweight rating. JPMorgan Chase & Co. now has a $125.00 price target on the stock, up from their previous price target of $120.00. CoreWeave traded as high as $91.12 and last traded at $90.13. Approximately 33,561,575 shares changed hands during mid-day trading, an increase of 17% from the average daily volume of 28,633,373 shares. The stock had previously closed at $86.90.

Other equities analysts have also recently issued research reports about the company. BNP Paribas Exane began coverage on CoreWeave in a report on Tuesday, June 2nd. They set an "outperform" rating and a $192.00 price target for the company. BTIG Research initiated coverage on CoreWeave in a report on Wednesday, July 22nd. They set a "buy" rating on the stock. Cantor Fitzgerald set a $176.00 price target on CoreWeave and gave the company an "overweight" rating in a research note on Wednesday, August 12th. Wolfe Research reaffirmed an "outperform" rating on shares of CoreWeave in a report on Monday, July 6th. Finally, Needham & Company LLC reaffirmed a "hold" rating on shares of CoreWeave in a research report on Thursday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $138.78.

Insider Activity at CoreWeave

In related news, CEO Michael Intrator sold 278,560 shares of the business's stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $97.43, for a total value of $27,140,100.80. Following the completion of the sale, the chief executive officer directly owned 3,138,612 shares in the company, valued at $305,794,967.16. The trade was a 8.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 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, major shareholder Magnetar Financial Llc sold 307,131 shares of the business's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $108.75, for a total value of $33,400,496.25. Following the completion of the sale, the insider owned 220,810 shares of the company's stock, valued at $24,013,087.50. This trade represents a 58.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 6,380,334 shares of company stock worth $561,507,579 in the last ninety days. 24.20% of the stock is owned by company insiders.

Trending Headlines about CoreWeave

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: JPMorgan upgraded CoreWeave to Overweight from Neutral and raised its price target to $125 from $120, citing favorable customer contracts and improving pricing power for AI cloud services. CoreWeave in spotlight as JP Morgan upgrades, citing favorable contracts
• Positive Sentiment: UBS initiated coverage with a Buy rating and a $120 target, arguing that robust AI compute demand could drive further growth and that CoreWeave’s valuation does not fully reflect industry demand signals. CoreWeave gets buy rating from UBS as AI compute demand strengthens
• Positive Sentiment: Harell Data selected CoreWeave to host training, fine-tuning and inference workloads for its secure AI model-training platform, adding another potential customer and growth channel. Harell Data Selects CoreWeave to Power Its Secure Platform for AI Model Training
• Positive Sentiment: CoreWeave earned SemiAnalysis’ Platinum ClusterMAX rating for the third consecutive evaluation, reinforcing its positioning on AI-cloud performance, reliability and scalability. CoreWeave earns SemiAnalysis Platinum ClusterMAX rating
• Neutral Sentiment: CoreWeave completed an upsized convertible-notes offering, providing $4.2 billion of funding for data-center expansion but increasing financing obligations and potential future dilution. CoreWeave closes $4.2 billion convertible notes deal
• Negative Sentiment: The capital raise highlights CoreWeave’s heavy investment needs and leverage; its reported debt-to-equity ratio is 5.53, while convertible securities could pressure shareholder ownership if converted.

Institutional Investors Weigh In On CoreWeave

A number of institutional investors have recently modified their holdings of CRWV. State Street Corp grew its stake in shares of CoreWeave by 139.7% in the second quarter. State Street Corp now owns 7,058,846 shares of the company's stock valued at $702,638,000 after acquiring an additional 4,113,873 shares in the last quarter. Alyeska Investment Group L.P. boosted its holdings in CoreWeave by 55.7% in the 2nd quarter. Alyeska Investment Group L.P. now owns 10,891,267 shares of the company's stock valued at $1,084,117,000 after purchasing an additional 3,897,741 shares during the period. Deutsche Bank AG increased its stake in CoreWeave by 22,624.0% during the 4th quarter. Deutsche Bank AG now owns 3,812,856 shares of the company's stock worth $273,039,000 after acquiring an additional 3,796,077 shares during the period. Altimeter Capital Management LP bought a new stake in shares of CoreWeave during the 4th quarter valued at $230,099,000. Finally, Amundi increased its position in shares of CoreWeave by 266.2% in the first quarter. Amundi now owns 3,284,121 shares of the company's stock worth $254,421,000 after purchasing an additional 2,387,337 shares during the period.

CoreWeave Stock Performance

The firm has a market cap of $41.36 billion, a price-to-earnings ratio of -24.69 and a beta of 7.45. The stock has a 50 day moving average of $85.46 and a 200 day moving average of $94.28. The company has a quick ratio of 0.46, a current ratio of 0.46 and a debt-to-equity ratio of 5.53.

CoreWeave (NASDAQ:CRWV - Get Free Report) last announced its quarterly earnings data on Tuesday, August 11th. The company reported ($1.14) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($1.52) by $0.38. The firm had revenue of $2.58 billion for the quarter. CoreWeave had a negative net margin of 25.41% and a negative return on equity of 47.95%. The company's quarterly revenue was up 112.5% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.27) earnings per share. As a group, analysts anticipate that CoreWeave Inc. will post -5.19 EPS for the current fiscal year.

About CoreWeave

CoreWeave, Inc is a specialized cloud computing provider focused on infrastructure for artificial intelligence, machine learning, high-performance computing and other data-intensive workloads. The company provides access to accelerated computing resources, particularly graphics processing units (GPUs), through a cloud platform designed for large-scale training, inference, rendering and scientific computing.

Its offerings include on-demand and reserved GPU instances, cloud storage, high-speed networking, Kubernetes-based container orchestration and managed services for deploying and scaling workloads.

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