CoreWeave (NASDAQ:CRWV) Stock Falls 6.9% After Analyst Downgrade

Shares of CoreWeave Inc. (NASDAQ:CRWV) traded down 6.9% during mid-day trading on Thursday after Barclays lowered their price target on the stock from $105.00 to $85.00. Barclays currently has an equal weight rating on the stock. CoreWeave traded as low as $50.17 and last traded at $56.60. 106,979,892 shares were traded during mid-day trading, an increase of 220% from the average session volume of 33,427,758 shares. The stock had previously closed at $60.77.

A number of other equities analysts also recently weighed in on CRWV. Rothschild & Co Redburn started coverage on shares of CoreWeave in a research note on Monday, September 21st. They issued a “sell” rating and a $54.00 price target on the stock. UBS Group reduced their price objective on CoreWeave from $120.00 to $105.00 and set a “buy” rating for the company in a research report on Friday, October 23rd. Rosenblatt Securities reduced their price objective on CoreWeave from $250.00 to $160.00 and set a “buy” rating for the company in a research report on Monday. Truist Financial lowered their target price on CoreWeave from $165.00 to $115.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of CoreWeave in a research report on Monday, September 21st. Twenty-seven equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $117.58.

Insider Transactions at CoreWeave

In other CoreWeave news, EVP Chen Goldberg sold 19,904 shares of the business’s stock in a transaction that occurred on Thursday, November 5th. The shares were sold at an average price of $46.50, for a total value of $925,536.00. Following the completion of the sale, the executive vice president directly owned 68,149 shares of the company’s stock, valued at $3,168,928.50. The trade was a 22.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 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 stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $77.42, for a total transaction of $1,669,871.98. Following the transaction, the executive owned 5,392 shares in the company, valued at approximately $417,448.64. This trade represents a 80.00% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 3,727,018 shares of company stock valued at $337,495,407. Insiders own 24.20% of the company’s stock.

Latest CoreWeave News

Here’s some of the latest news about CRWV:

• Positive Sentiment: Funding plan could ease pressure: Management is pursuing customer prepayments and contract-backed financing; reports also say CoreWeave is preparing a roughly $4 billion investment-grade loan. These steps may help fund growth at lower cost than relying on expensive unsecured debt. Yahoo Finance financing report
• Neutral Sentiment: Credit-market concerns may be easing, but remain relevant: CoreWeave’s bonds have reportedly signaled less investor anxiety about its debt than earlier fears suggested. Still, the company’s heavy borrowing and data-center investment needs remain important risks. Yahoo Finance bond coverage
• Negative Sentiment: AI-trade volatility returned: Reports about Nvidia CEO Jensen Huang’s resignation rattled Nvidia-linked stocks and weighed on sentiment toward AI infrastructure providers, including CoreWeave. Weakness across “neocloud” peers after Nebius’s results added to the pressure. AOL report on AI-trade reaction

Hedge Funds Weigh In On CoreWeave

Several hedge funds have recently bought and sold shares of the business. State Street Corp lifted its position in shares of CoreWeave by 139.7% in the second quarter. State Street Corp now owns 7,058,846 shares of the company’s stock worth $702,638,000 after buying an additional 4,113,873 shares during the last quarter. Alyeska Investment Group L.P. raised its stake in shares of CoreWeave by 55.7% in 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 acquiring an additional 3,897,741 shares in the last quarter. Amundi raised its stake in shares of CoreWeave by 266.2% in the 1st quarter. Amundi now owns 3,284,121 shares of the company’s stock valued at $254,421,000 after acquiring an additional 2,387,337 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in CoreWeave in the 2nd quarter worth approximately $127,936,000. Finally, Jennison Associates LLC bought a new stake in CoreWeave during the first quarter worth approximately $95,135,000.

CoreWeave Stock Performance

The company has a debt-to-equity ratio of 5.53, a current ratio of 0.46 and a quick ratio of 0.46. The firm has a fifty day simple moving average of $73.71 and a 200 day simple moving average of $89.28. The company has a market cap of $25.97 billion, a price-to-earnings ratio of -12.04 and a beta of 7.71.

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