CoreWeave (NASDAQ:CRWV) Shares Gap Down After Analyst Downgrade

CoreWeave Inc. (NASDAQ:CRWV) gapped down prior to trading on Thursday after Argus lowered their price target on the stock from $150.00 to $100.00. The stock had previously closed at $60.77, but opened at $50.91. Argus currently has a buy rating on the stock. CoreWeave shares last traded at $54.2220, with a volume of 36,373,436 shares trading hands.

A number of other research firms also recently weighed in on CRWV. William Blair began coverage on shares of CoreWeave in a research note on Wednesday, September 30th. They set an “outperform” rating on the stock. BTIG Research started coverage on shares of CoreWeave in a research note on Wednesday, July 22nd. They issued a “buy” rating for the company. Deutsche Bank restated a “buy” rating and issued a $150.00 price objective (up from $135.00) on shares of CoreWeave in a research note on Friday, August 7th. Robert W. Baird raised their price objective on shares of CoreWeave from $100.00 to $130.00 and gave the stock an “outperform” rating in a report on Wednesday, August 12th. Finally, Rothschild & Co Redburn assumed coverage on shares of CoreWeave in a research report on Monday, September 21st. They set a “sell” rating and a $54.00 target price on the stock. Twenty-seven investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $118.14.

Insider Transactions at CoreWeave

In other news, insider Jeff Baker sold 6,670 shares of the business’s stock in a transaction on Thursday, October 29th. The shares were sold at an average price of $61.16, for a total value of $407,937.20. Following the sale, the insider owned 14,170 shares in the company, valued at approximately $866,637.20. The trade was a 32.01% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Jonathan Jones sold 21,569 shares of the business’s stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $77.42, for a total transaction of $1,669,871.98. Following the completion of the sale, the executive owned 5,392 shares in the company, valued at $417,448.64. This represents a 80.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 3,727,018 shares of company stock valued at $337,495,407. 24.20% of the stock is owned by insiders.

CoreWeave News Roundup

These are some of the CRWV news items that stood out recently:

• Positive Sentiment: Funding steps may ease capital-cost concerns: Management expects about $9 billion in customer prepayments and deposits over the coming months and is emphasizing contract-backed financing rather than new unsecured parent-level debt. Bloomberg also reported the company is preparing a potential $4 billion investment-grade loan. Report on potential loan
• Neutral Sentiment: Analyst targets are mixed: Argus cut its target to $100 but kept a Buy rating, while other analysts have also reduced targets despite maintaining positive ratings. The varied views reflect uncertainty over how quickly growth will translate into sustainable profitability.
• Negative Sentiment: Debt and expansion remain risks: CoreWeave’s data-center buildout requires large amounts of capital, and its interest burden and liquidity needs remain investor concerns. A report on weakness among Nvidia-linked stocks also points to potential spillover volatility for CRWV. WSJ analysis of capital needs

Institutional Investors Weigh In On CoreWeave

A number of hedge funds have recently made changes to their positions in the company. Parallel Advisors LLC lifted its holdings in CoreWeave by 4.0% during the 1st quarter. Parallel Advisors LLC now owns 2,340 shares of the company’s stock valued at $181,000 after purchasing an additional 91 shares during the last quarter. Pathway Wealth Management LLC grew its stake in CoreWeave by 2.9% during the first quarter. Pathway Wealth Management LLC now owns 3,593 shares of the company’s stock worth $278,000 after buying an additional 100 shares during the last quarter. Sequoia Financial Advisors LLC grew its stake in CoreWeave by 3.6% during the second quarter. Sequoia Financial Advisors LLC now owns 4,128 shares of the company’s stock worth $411,000 after buying an additional 145 shares during the last quarter. Cooper Financial Group grew its stake in CoreWeave by 5.0% during the third quarter. Cooper Financial Group now owns 3,066 shares of the company’s stock worth $267,000 after buying an additional 147 shares during the last quarter. Finally, Crumly & Associates Inc. grew its stake in CoreWeave by 0.4% during the third quarter. Crumly & Associates Inc. now owns 34,602 shares of the company’s stock worth $3,015,000 after buying an additional 150 shares during the last quarter.

CoreWeave Trading Down 8.4%

The company has a market cap of $25.56 billion, a price-to-earnings ratio of -11.85 and a beta of 7.71. The company’s fifty day moving average price is $73.71 and its two-hundred day moving average price is $89.28. The company has a quick ratio of 0.46, a current ratio of 0.46 and a debt-to-equity ratio of 5.53.

CoreWeave (NASDAQ:CRWV) last posted its earnings results on Tuesday, November 10th. The company reported ($0.95) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($1.45) by $0.50. The company had revenue of $3.66 billion during the quarter, compared to analysts’ expectations of $3.54 billion. CoreWeave had a negative net margin of 25.56% and a negative return on equity of 59.42%. CoreWeave’s quarterly revenue was up 168.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.22) earnings per share. Research analysts expect that CoreWeave Inc. will post -4.99 earnings per share for the current year.

About CoreWeave

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.