CoreWeave (NASDAQ:CRWV) Shares Climb 5% - Time to Buy?

Key Points

• CoreWeave shares rose 5% to $91.72 on above-average trading volume, giving the company a market capitalization of about $42.1 billion.
• Analyst sentiment is broadly positive: 23 analysts rate the stock a Buy, compared with nine Holds and three Sells. The consensus rating is “Moderate Buy,” with an average price target of $138.78.
• CoreWeave reported strong revenue growth of 112.5% year over year to $2.58 billion and beat quarterly EPS estimates, but remains unprofitable, highly leveraged, and subject to significant insider selling.

Shares of CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) were up 5% on Tuesday. The company traded as high as $93.21 and last traded at $91.72. 31,260,830 shares traded hands during trading, an increase of 10% from the average daily volume of 28,404,426 shares. The stock had previously closed at $87.39.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on CRWV. JPMorgan Chase & Co. raised shares of CoreWeave from a "neutral" rating to an "overweight" rating and boosted their target price for the stock from $120.00 to $125.00 in a research report on Thursday, September 24th. UBS Group began coverage on CoreWeave in a research note on Tuesday, September 22nd. They set a "buy" rating and a $120.00 price objective on the stock. Wolfe Research reaffirmed an "outperform" rating on shares of CoreWeave in a report on Monday, July 6th. The Goldman Sachs Group boosted their price target on CoreWeave from $121.00 to $139.00 and gave the company a "neutral" rating in a report on Friday, August 21st. Finally, Wells Fargo & Company raised their price objective on CoreWeave from $155.00 to $160.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 12th. Twenty-three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $138.78.

CoreWeave Price Performance

The company has a market capitalization of $42.09 billion, a P/E ratio of -25.13 and a beta of 7.36. The company has a fifty day moving average price of $87.38 and a 200 day moving average price of $94.76. The company has a debt-to-equity ratio of 5.53, a current ratio of 0.46 and a quick ratio of 0.46.

CoreWeave (NASDAQ:CRWV - Get Free Report) last announced its quarterly earnings results on Tuesday, August 11th. The company reported ($1.14) earnings per share (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 business had revenue of $2.58 billion for the quarter. During the same period last year, the business posted ($0.27) EPS. The company's revenue for the quarter was up 112.5% on a year-over-year basis. On average, sell-side analysts forecast that CoreWeave Inc. will post -5.19 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Brian M. Venturo sold 65,616 shares of the company's stock in a transaction dated Wednesday, September 30th. The shares were sold at an average price of $87.69, for a total transaction of $5,753,867.04. Following the completion of the transaction, the insider owned 302,526 shares in the company, valued at approximately $26,528,504.94. This represents a 17.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Brannin Mcbee sold 56,531 shares of the stock in a transaction dated Wednesday, September 30th. The stock was sold at an average price of $87.69, for a total transaction of $4,957,203.39. Following the completion of the sale, the insider directly owned 392,279 shares in the company, valued at approximately $34,398,945.51. This trade represents a 12.60% 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 have sold 5,912,108 shares of company stock valued at $515,253,504. 24.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Alyeska Investment Group L.P. raised its holdings in shares of CoreWeave by 55.7% during the second quarter. Alyeska Investment Group L.P. now owns 10,891,267 shares of the company's stock valued at $1,084,117,000 after buying an additional 3,897,741 shares during the last quarter. State Street Corp boosted its position in shares of CoreWeave by 139.7% during the second 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 period. Bank of America Corp DE grew its holdings in CoreWeave by 13.1% in 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 in the last quarter. Clear Street Group Inc. grew its holdings in CoreWeave by 57.2% in the 4th quarter. Clear Street Group Inc. now owns 4,653,815 shares of the company's stock worth $333,260,000 after buying an additional 1,692,916 shares in the last quarter. Finally, Deutsche Bank AG increased its position in CoreWeave by 22,624.0% in the 4th quarter. Deutsche Bank AG now owns 3,812,856 shares of the company's stock valued at $273,039,000 after acquiring an additional 3,796,077 shares during the period.

About CoreWeave

CoreWeave, Inc is a specialized cloud computing provider focused on infrastructure for artificial intelligence, machine learning and other data-intensive workloads. The company offers access to accelerated computing resources, including graphics processing units (GPUs), alongside central processing units, high-performance storage, networking and data center capacity.

Its platform supports AI model training, fine-tuning and inference, as well as visual effects, rendering, scientific computing and other demanding applications.

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