CoreWeave (NASDAQ:CRWV) Trading Down 1.4% Following Insider Selling

Shares of CoreWeave Inc. (NASDAQ:CRWV) dropped 1.4% during trading on Thursday after an insider sold shares in the company. The stock traded as low as $86.51 and last traded at $86.80. 19,013,020 shares were traded during trading, a decline of 33% from the average daily volume of 28,536,303 shares. The stock had previously closed at $88.01.

Specifically, insider Brannin Mcbee sold 105,500 shares of the company’s stock in a transaction on Monday, August 24th. The stock was sold at an average price of $85.51, for a total value of $9,021,305.00. Following the sale, the insider directly owned 471,691 shares of the company’s stock, valued at $40,334,297.41. This represents a 18.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Brannin Mcbee sold 144,000 shares of the stock in a transaction on Monday, August 24th. The stock was sold at an average price of $85.51, for a total value of $12,313,440.00. Following the completion of the transaction, the insider owned 327,691 shares of the company’s stock, valued at approximately $28,020,857.41. This trade represents a 30.53% 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. In other news, insider Brannin Mcbee sold 500 shares of the business’s stock in a transaction on Monday, August 24th. The shares were sold at an average price of $85.51, for a total transaction of $42,755.00. Following the sale, the insider owned 48,000 shares in the company, valued at approximately $4,104,480. The trade was a 1.03% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

CRWV has been the topic of several analyst reports. Truist Financial lifted their price target on shares of CoreWeave from $155.00 to $165.00 and gave the company a “buy” rating in a report on Monday. Oppenheimer lifted their price objective on shares of CoreWeave from $140.00 to $150.00 and gave the stock an “outperform” rating in a research note on Wednesday, April 29th. BNP Paribas Exane began coverage on CoreWeave in a report on Tuesday, June 2nd. They set an “outperform” rating and a $192.00 price target on the stock. Cantor Fitzgerald set a $176.00 target price on CoreWeave and gave the stock an “overweight” rating in a research report on Wednesday, August 12th. Finally, Robert W. Baird boosted their price target on shares of CoreWeave from $100.00 to $130.00 and gave the company an “outperform” rating in a report on Wednesday, August 12th. Twenty-one analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $141.90.

Key CoreWeave News

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: CoreWeave announced or expanded deals with Hudson River Trading and Rescale, reinforcing demand for its AI-cloud infrastructure and helping the stock remain a focus among AI investors. CoreWeave Stock Trending as Company Lands Deals With Hudson River Trading, Rescale
• Positive Sentiment: Reports highlighting Nvidia’s minimum-revenue guarantees for neocloud companies suggest a potential financing and demand tailwind for CoreWeave, although Nvidia may also receive a share of rental revenue. CRWV, NBIS, IREN Stocks Jump Overnight On Nvidia’s Blowout Q2
• Positive Sentiment: Truist reportedly sees substantial upside and raised its valuation case, citing a pricing change it believes investors may have overlooked. Truist sees investment doubling potential in tumbling tech stock
• Neutral Sentiment: Analyst commentary remains divided: AI demand is outpacing available capacity and CoreWeave’s revenue recently grew sharply, but articles question the company’s GPU economics, capital requirements and valuation. CoreWeave: AI Demand Outstrips Supply, Yet The Stock Isn’t A Buy
• Negative Sentiment: Insider Brannin McBee sold approximately 250,000 shares for about $21.4 million under pre-arranged Rule 10b5-1 plans. The transactions reduced his reported holdings and revived concerns about insider confidence, even though the sales were scheduled in advance. CoreWeave Stock Declines Following $21M Insider Sale Amid Rising Debt Worries
• Negative Sentiment: CoreWeave’s debt-to-equity ratio of 5.53 and current ratio of 0.46 amplify concerns about the financing needed to expand its GPU fleet. Investors are also wary of a possible future neocloud price decline, which could pressure margins.

CoreWeave Stock Down 1.4%

The company has a market cap of $39.83 billion, a PE ratio of -23.78 and a beta of 7.44. The business’s fifty day simple moving average is $88.46 and its two-hundred day simple moving average is $94.89. The company has a debt-to-equity ratio of 5.53, a current ratio of 0.46 and a quick ratio of 0.46.

CoreWeave (NASDAQ:CRWV) last issued its quarterly earnings data on Tuesday, August 11th. The company reported ($1.14) EPS for the quarter, beating the consensus estimate 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 firm’s revenue for the quarter was up 112.5% on a year-over-year basis. During the same period in the previous year, the business posted ($0.27) earnings per share. On average, analysts predict that CoreWeave Inc. will post -5.19 earnings per share for the current year.

Hedge Funds Weigh In On CoreWeave

A number of large investors have recently added to or reduced their stakes in CRWV. Vanguard Group Inc. raised its holdings in CoreWeave by 275.6% in the 4th quarter. Vanguard Group Inc. now owns 27,920,979 shares of the company’s stock valued at $1,999,421,000 after buying an additional 20,487,478 shares during the period. Legal & General Group Plc raised its stake in shares of CoreWeave by 8,455.6% in the 4th quarter. Legal & General Group Plc now owns 611,301 shares of the company’s stock valued at $43,775,000 after acquiring an additional 604,156 shares during the period. Bank of New York Mellon Corp raised its stake in shares of CoreWeave by 12.6% in the 1st quarter. Bank of New York Mellon Corp now owns 353,702 shares of the company’s stock valued at $27,401,000 after acquiring an additional 39,599 shares during the period. California State Teachers Retirement System lifted its holdings in shares of CoreWeave by 25.5% in the 1st quarter. California State Teachers Retirement System now owns 320,011 shares of the company’s stock worth $24,791,000 after acquiring an additional 64,960 shares during the last quarter. Finally, Ardmore Road Asset Management LP boosted its position in shares of CoreWeave by 3,410.0% during the 1st quarter. Ardmore Road Asset Management LP now owns 351,000 shares of the company’s stock worth $27,192,000 after purchasing an additional 341,000 shares during the period.

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.