CoreWeave (NASDAQ:CRWV) Stock Falls 2.4% on Analyst Downgrade

Key Points

• CoreWeave shares fell 2.4% to about $54.24 after UBS lowered its price target from $120 to $105, while maintaining a Buy rating. Trading volume was roughly 49% above the average session volume.
• Analyst sentiment remains broadly positive but mixed: 25 analysts rate the stock Buy, eight Hold and three Sell, producing a consensus Moderate Buy rating and a $130.31 price target.
• The company reported strong operating momentum, including $2.58 billion in quarterly revenue—up 112.5% year over year—but remains unprofitable and highly leveraged. Insiders sold more than 5.35 million shares worth approximately $471.8 million over the past three months.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report)'s share price dropped 2.4% during mid-day trading on Friday after UBS Group lowered their price target on the stock from $120.00 to $105.00. UBS Group currently has a buy rating on the stock. CoreWeave traded as low as $54.01 and last traded at $54.24. 46,123,175 shares were traded during mid-day trading, an increase of 49% from the average session volume of 30,866,555 shares. The stock had previously closed at $55.60.

A number of other equities research analysts have also recently commented on CRWV. Raymond James Financial cut CoreWeave from a "moderate buy" rating to a "hold" rating in a research note on Wednesday, July 22nd. William Blair began coverage on CoreWeave in a research report on Wednesday, September 30th. They issued an "outperform" rating for the company. Mizuho dropped their price target on shares of CoreWeave from $115.00 to $88.00 and set a "neutral" rating on the stock in a research note on Thursday, October 15th. Jefferies Financial Group reiterated a "buy" rating on shares of CoreWeave in a research note on Thursday, October 15th. Finally, Citigroup increased their price objective on shares of CoreWeave from $142.00 to $159.00 and gave the company a "buy" rating in a research report on Friday, August 14th. Twenty-five research analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, CoreWeave presently has a consensus rating of "Moderate Buy" and a consensus price target of $130.31.

Insider Transactions at CoreWeave

In other CoreWeave news, major shareholder Magnetar Financial Llc sold 307,131 shares of the company's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $108.75, for a total transaction of $33,400,496.25. Following the transaction, the insider owned 220,810 shares in the company, valued at approximately $24,013,087.50. This represents a 58.18% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Michael N. Intrator sold 200,000 shares of the company's stock in a transaction dated 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 transaction, the chief executive officer owned 2,276,815 shares in the company, valued at $151,681,415.30. This represents a 8.07% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 5,352,578 shares of company stock valued at $471,777,344. 24.20% of the stock is owned by insiders.

Key CoreWeave News

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: Demand fundamentals remain strong. CoreWeave has reported roughly $104 billion in contracted revenue, implemented a 25% price increase, and is bringing additional data-center capacity online. Bank of America maintained a Buy rating and a $140 price target, forecasting substantial third-quarter revenue growth. CoreWeave capacity expansion to drive revenue growth
• Positive Sentiment: Some investors and industry commentators argue that the AI infrastructure selloff is excessive. Blackstone’s Jon Gray said CoreWeave can work through its financing pressure, while other analysts point to sustained AI-compute demand and the company’s enterprise security and Physical AI product launches as longer-term opportunities. Blackstone comments on CoreWeave financing

Hedge Funds Weigh In On CoreWeave

A number of institutional investors and hedge funds have recently modified their holdings of the company. State Street Corp grew 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 valued at $702,638,000 after acquiring an additional 4,113,873 shares during the period. Alyeska Investment Group L.P. raised 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 worth $1,084,117,000 after purchasing an additional 3,897,741 shares during the period. Amundi lifted its position in CoreWeave by 266.2% during the first quarter. Amundi now owns 3,284,121 shares of the company's stock valued at $254,421,000 after purchasing an additional 2,387,337 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in CoreWeave during the second quarter valued at $127,936,000. Finally, Jennison Associates LLC bought a new stake in CoreWeave during the first quarter valued at about $95,135,000.

CoreWeave Stock Down 2.4%

The company has a fifty day simple moving average of $83.97 and a 200-day simple moving average of $94.04. 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 market cap of $24.89 billion, a P/E ratio of -14.86 and a beta of 7.36.

CoreWeave (NASDAQ:CRWV - Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The company reported ($1.14) EPS for the quarter, topping the consensus estimate of ($1.52) by $0.38. The firm had revenue of $2.58 billion for the quarter. CoreWeave had a negative return on equity of 47.95% and a negative net margin of 25.41%. The firm's quarterly revenue was up 112.5% compared to the same quarter last year. During the same period last year, the business earned ($0.27) EPS. On average, equities analysts anticipate that CoreWeave Inc. will post -4.95 earnings per share for the current 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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