CoreWeave (NASDAQ:CRWV) Shares Down 6.1% Following Analyst Downgrade

Key Points

• CoreWeave shares fell 6.1% after Barclays cut its price target from $105 to $85 while maintaining an Equal Weight rating; trading volume was 136% above average.
• The company reported quarterly revenue of $3.66 billion, up 168.2% year over year, beating estimates, and its loss per share was narrower than analysts expected.
• Despite the downgrade, analysts’ consensus rating is Moderate Buy, with an average price target of $116.66; 26 analysts rate the stock Buy, eight Hold, and four Sell.

Shares of CoreWeave Inc. (NASDAQ:CRWV - Get Free Report) were down 6.1% during trading on Friday after Barclays lowered their price target on the stock from $105.00 to $85.00. Barclays currently has an equal weight rating on the stock. CoreWeave traded as low as $49.24 and last traded at $53.13. 79,345,712 shares traded hands during mid-day trading, an increase of 136% from the average session volume of 33,638,305 shares. The stock had previously closed at $56.60.

A number of other research firms have also recently issued reports on CRWV. Jefferies Financial Group restated a "buy" rating on shares of CoreWeave in a research report on Thursday, October 15th. Raymond James Financial reaffirmed an "outperform" rating and issued a $75.00 target price on shares of CoreWeave in a research report on Monday, October 26th. Mizuho set a $68.00 target price on CoreWeave in a research report on Wednesday. Needham & Company LLC reiterated a "hold" rating on shares of CoreWeave in a research note on Wednesday. Finally, BNP Paribas Exane reissued an "outperform" rating and issued a $117.00 price target on shares of CoreWeave in a report on Monday, October 19th. Twenty-six equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $116.66.

Insider Transactions at CoreWeave

In related news, CEO Michael Intrator sold 200,000 shares of the firm's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $95.72, for a total transaction of $19,144,000.00. Following the completion of the sale, the chief executive officer directly owned 1,676,815 shares of the company's stock, valued at $160,504,731.80. This trade represents a 10.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kristen Mcveety sold 156,000 shares of CoreWeave stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $81.63, for a total value of $12,734,280.00. Following the completion of the transaction, the insider owned 123,313 shares of the company's stock, valued at approximately $10,066,040.19. The trade was a 55.85% 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. Insiders have sold 3,419,887 shares of company stock valued at $304,094,910 in the last three months. 24.20% of the stock is owned by corporate insiders.

Recent CoreWeave Headlines

Here are a few of the latest headlines about CRWV:

• Positive Sentiment: CoreWeave reported Q3 revenue of $3.66 billion, up 168% year over year and above expectations. Management raised its 2026 revenue outlook to $13.0–$13.3 billion, while its $132.5 billion backlog signals substantial demand for AI cloud capacity. Article: CRWV Q3 Earnings Impress, Outlook Raised
• Positive Sentiment: One analysis says improved financing clarity, customer prepayments, and secured funding reduce near-term refinancing risk; it also cites a lower weighted average debt cost. That may ease concerns about financing the company’s rapid data-center expansion. Article: CoreWeave: The Debt Crisis That Wasn't
• Negative Sentiment: Investors are also reacting to uncertainty over Nvidia’s future support for neocloud companies and the value of their chip investments. Barclays and Argus lowered their price targets, adding pressure despite the earnings beat. Article: CoreWeave and Nebius Lost a Friend in Huang

Institutional Trading of CoreWeave

Several large investors have recently made changes to their positions in the business. MassMutual Private Wealth & Trust FSB raised its holdings in shares of CoreWeave by 241.1% in the third quarter. MassMutual Private Wealth & Trust FSB now owns 307 shares of the company's stock valued at $27,000 after buying an additional 217 shares during the last quarter. Essential Partners LLC bought a new stake in CoreWeave during the 2nd quarter worth about $30,000. Cassaday & Co Wealth Management LLC bought a new stake in CoreWeave during the 1st quarter worth about $31,000. Burnham & Co LLC bought a new stake in CoreWeave during the 2nd quarter worth about $32,000. Finally, Allied Private Wealth LLC acquired a new stake in CoreWeave in the 2nd quarter valued at about $40,000.

CoreWeave Stock Down 6.1%

The stock has a market cap of $24.38 billion, a price-to-earnings ratio of -11.30 and a beta of 7.71. The company has a debt-to-equity ratio of 5.53, a quick ratio of 0.46 and a current ratio of 0.46. The firm's 50-day simple moving average is $73.22 and its two-hundred day simple moving average is $89.07.

CoreWeave (NASDAQ:CRWV - Get Free Report) last announced its earnings results on Tuesday, November 10th. The company reported ($0.95) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($1.45) by $0.50. CoreWeave had a negative net margin of 25.56% and a negative return on equity of 59.42%. The company had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.54 billion. During the same period in the prior year, the business earned ($0.22) earnings per share. CoreWeave's quarterly revenue was up 168.2% on a year-over-year basis. On average, sell-side analysts expect that CoreWeave Inc. will post -4.99 EPS for the current fiscal year.

CoreWeave Company Profile

CoreWeave is a cloud computing company that provides infrastructure for artificial intelligence, machine learning, and other compute-intensive workloads. Its services include access to graphics processing units (GPUs), cloud storage and networking, and software tools for deploying and managing workloads. The company was founded in 2017 as a cryptocurrency mining business and later shifted its focus to cloud computing. CoreWeave is headquartered in Livingston, New Jersey, and operates data center infrastructure in the United States and Europe, serving customers that need large-scale computing resources.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.