CoreWeave (NASDAQ:CRWV) Stock Price Down 2.9% - What's Next?

Key Points

• CoreWeave shares fell 2.9% to $85.07, with trading volume below its daily average. The stock remains highly volatile, with a beta of 7.45 and significant leverage reflected in its 5.53 debt-to-equity ratio.
• Analyst sentiment remains broadly positive: 22 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 exceeded quarterly EPS expectations, but it remains unprofitable. Insiders have sold approximately $569.5 million of stock over the past 90 days, including sales by an insider and the CFO under pre-arranged trading plans.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report)'s share price was down 2.9% during trading on Monday. The stock traded as low as $83.53 and last traded at $85.07. 18,475,314 shares traded hands during trading, a decline of 35% from the average daily volume of 28,542,680 shares. The stock had previously closed at $87.59.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. Wolfe Research restated an "outperform" rating on shares of CoreWeave in a report on Monday, July 6th. Truist Financial lifted their price objective on shares of CoreWeave from $155.00 to $165.00 and gave the company a "buy" rating in a research note on Monday, August 24th. Raymond James Financial cut shares of CoreWeave from a "moderate buy" rating to a "hold" rating in a research report on Wednesday, July 22nd. Btg Pactual set a $125.00 target price on shares of CoreWeave in a research note on Monday, September 21st. Finally, Sanford C. Bernstein raised their price target on shares of CoreWeave from $67.00 to $74.00 and gave the company an "underperform" rating in a report on Wednesday, August 12th. Twenty-two investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $138.78.

CoreWeave Trading Down 2.9%

The business has a 50 day simple moving average of $86.09 and a two-hundred day simple moving average of $94.49. The company has a current ratio of 0.46, a quick ratio of 0.46 and a debt-to-equity ratio of 5.53. The stock has a market cap of $39.04 billion, a price-to-earnings ratio of -23.31 and a beta of 7.45.

CoreWeave (NASDAQ:CRWV - Get Free Report) last announced its earnings results 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. The company 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 business's revenue for the quarter was up 112.5% on a year-over-year basis. During the same period in the previous year, the company earned ($0.27) earnings per share. As a group, equities analysts anticipate that CoreWeave Inc. will post -5.19 EPS for the current year.

Insider Activity at CoreWeave

In other CoreWeave news, insider Kristen Mcveety sold 97,500 shares of the firm's stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $93.94, for a total transaction of $9,159,150.00. Following the completion of the transaction, the insider directly owned 123,313 shares of the company's stock, valued at $11,584,023.22. This trade represents a 44.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Nitin Agrawal sold 55,764 shares of the business's stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $86.83, for a total transaction of $4,841,988.12. Following the completion of the sale, the chief financial officer directly owned 132,596 shares of the company's stock, valued at $11,513,310.68. The trade was a 29.61% 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 a total of 6,493,790 shares of company stock worth $569,483,387 in the last ninety days. 24.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On CoreWeave

A number of institutional investors have recently modified their holdings of the stock. QRG Capital Management Inc. lifted its position in shares of CoreWeave by 8.4% during the second quarter. QRG Capital Management Inc. now owns 21,810 shares of the company's stock worth $2,171,000 after purchasing an additional 1,692 shares during the last quarter. Envestnet Portfolio Solutions Inc. bought a new stake in CoreWeave in the second quarter valued at about $378,000. Envestnet Asset Management Inc. increased its holdings in CoreWeave by 68.6% in the second quarter. Envestnet Asset Management Inc. now owns 71,795 shares of the company's stock valued at $7,146,000 after buying an additional 29,216 shares during the last quarter. State Street Corp raised its stake in CoreWeave by 139.7% during the second quarter. State Street Corp now owns 7,058,846 shares of the company's stock valued at $702,638,000 after buying an additional 4,113,873 shares in the last quarter. Finally, Wellington Altus USA Inc. raised its stake in CoreWeave by 256.0% during the second quarter. Wellington Altus USA Inc. now owns 534 shares of the company's stock valued at $53,000 after buying an additional 384 shares in the last quarter.

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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