CoreWeave (NASDAQ:CRWV) Trading Down 3.6% - What's Next?

Key Points

• CoreWeave shares fell 3.6% to $81.85 in heavy trading, remaining below their 50-day and 200-day moving averages. The stock has a $37.56 billion market capitalization and a high beta of 7.45, reflecting significant volatility.
• Analysts maintain a generally positive outlook, with 21 Buy, 10 Hold and 3 Sell ratings. The consensus rating is “Moderate Buy”, with an average price target of $141.90.
• CoreWeave’s quarterly revenue surged 112.5% year over year to $2.58 billion, while its adjusted loss of $1.14 per share beat expectations. However, the company remains unprofitable, highly leveraged with a 5.53 debt-to-equity ratio, and insiders have sold more than $682 million in stock over the past 90 days.

CoreWeave Inc. (NASDAQ:CRWV - Get Free Report)'s share price dropped 3.6% on Tuesday . The stock traded as low as $80.37 and last traded at $81.85. 15,577,249 shares changed hands during trading, a decline of 45% from the average session volume of 28,306,549 shares. The stock had previously closed at $84.89.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. Truist Financial lifted their price target on CoreWeave from $155.00 to $165.00 and gave the stock a "buy" rating in a report on Monday, August 24th. Mizuho lifted their price objective on shares of CoreWeave from $100.00 to $115.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 12th. Needham & Company LLC reissued a "hold" rating on shares of CoreWeave in a research report on Thursday, August 13th. JPMorgan Chase & Co. upped their price target on CoreWeave from $105.00 to $110.00 and gave the company a "neutral" rating in a research report on Tuesday, August 11th. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $150.00 price objective on shares of CoreWeave in a report on Friday, August 7th. Twenty-one research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $141.90.

CoreWeave Stock Performance

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 company has a market capitalization of $37.56 billion, a PE ratio of -22.42 and a beta of 7.45. The company has a 50-day moving average price of $86.64 and a two-hundred day moving average price of $94.71.

CoreWeave (NASDAQ:CRWV - Get Free Report) last posted its earnings results on Tuesday, August 11th. The company reported ($1.14) earnings per share for the quarter, beating analysts' consensus estimates of ($1.52) by $0.38. The business had revenue of $2.58 billion during 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 in the previous year, the firm earned ($0.27) EPS. Analysts predict that CoreWeave Inc. will post -5.19 EPS for the current fiscal year.

Insider Activity at CoreWeave

In other news, insider Kristen J. Mcveety sold 2,100 shares of the business's stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $88.03, for a total transaction of $184,863.00. Following the completion of the transaction, the insider owned 123,313 shares of the company's stock, valued at approximately $10,855,243.39. The trade was a 1.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Brannin Mcbee sold 500 shares of the company's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $85.51, for a total transaction of $42,755.00. Following the completion of the transaction, the insider owned 48,000 shares in the company, valued at approximately $4,104,480. This trade represents a 1.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 7,277,865 shares of company stock valued at $682,576,524 in the last ninety days. 24.20% of the stock is currently owned by corporate insiders.

Institutional Trading of CoreWeave

Hedge funds have recently made changes to their positions in the stock. California State Teachers Retirement System increased its stake in CoreWeave by 12,886.8% in the second quarter. California State Teachers Retirement System now owns 41,559,344 shares of the company's stock valued at $4,136,817,000 after acquiring an additional 41,239,333 shares during the last quarter. Proficio Capital Partners LLC boosted its holdings in shares of CoreWeave by 446,194.0% in the 3rd quarter. Proficio Capital Partners LLC now owns 17,851,760 shares of the company's stock worth $2,443,013,000 after purchasing an additional 17,847,760 shares in the last quarter. Alyeska Investment Group L.P. increased its position in shares of CoreWeave by 55.7% during 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 last quarter. Deutsche Bank AG increased its position in shares of CoreWeave by 22,624.0% during the 4th quarter. Deutsche Bank AG now owns 3,812,856 shares of the company's stock valued at $273,039,000 after purchasing an additional 3,796,077 shares during the last quarter. Finally, Altimeter Capital Management LP purchased a new position in shares of CoreWeave during the 4th quarter valued at about $230,099,000.

About CoreWeave

CoreWeave is a U.S.-based provider of GPU-accelerated cloud infrastructure designed to support compute-intensive workloads such as artificial intelligence, machine learning, visual effects rendering and other high-performance computing applications. The company supplies access to large fleets of modern GPUs and complementary infrastructure that enable customers to train and deploy large models, run inference at scale, and process graphics-heavy workloads with low latency and high throughput.

CoreWeave’s product offering includes on-demand and dedicated GPU instances, bare-metal servers, private clusters and managed services tailored for enterprise and developer use.

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