CoreWeave (NASDAQ:CRWV) Stock Falls 2.4% on Analyst Downgrade

Shares of CoreWeave Inc. (NASDAQ:CRWV) traded down 2.4% during trading on Friday after UBS Group lowered their price target on the stock from $120.00 to $105.00. UBS Group currently has a buy rating on the stock. CoreWeave traded as low as $54.01 and last traded at $54.24. Approximately 46,123,175 shares changed hands during trading, an increase of 49% from the average daily volume of 30,866,555 shares. The stock had previously closed at $55.60.

Several other brokerages also recently weighed in on CRWV. Truist Financial upped their target price on shares of CoreWeave from $155.00 to $165.00 and gave the stock a “buy” rating in a report on Monday, August 24th. Btg Pactual set a $125.00 price target on CoreWeave in a report on Monday, September 21st. Roth Capital set a $145.00 price target on CoreWeave in a report on Thursday, August 13th. Wolfe Research restated an “outperform” rating on shares of CoreWeave in a research report on Monday, July 6th. Finally, Jefferies Financial Group reaffirmed a “buy” rating on shares of CoreWeave in a research note on Thursday, October 15th. Twenty-five research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $130.31.

Insider Transactions at CoreWeave

In related news, major shareholder Magnetar Financial Llc sold 307,131 shares of the business’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $108.75, for a total value of $33,400,496.25. Following the sale, the insider directly owned 220,810 shares in the company, valued at approximately $24,013,087.50. The trade was a 58.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Michael Intrator sold 200,000 shares of the stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $66.62, for a total value of $13,324,000.00. Following the transaction, the chief executive officer directly owned 2,276,815 shares of the company’s stock, valued at approximately $151,681,415.30. The trade was a 8.07% 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. In the last 90 days, insiders have sold 5,352,578 shares of company stock valued at $471,777,344. Company insiders own 24.20% of the company’s stock.

Key CoreWeave News

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: Demand fundamentals remain strong. CoreWeave has reported roughly $104 billion in contracted revenue, implemented a 25% price increase, and is bringing additional data-center capacity online. Bank of America maintained a Buy rating and a $140 price target, forecasting substantial third-quarter revenue growth. CoreWeave capacity expansion to drive revenue growth
• Positive Sentiment: Some investors and industry commentators argue that the AI infrastructure selloff is excessive. Blackstone’s Jon Gray said CoreWeave can work through its financing pressure, while other analysts point to sustained AI-compute demand and the company’s enterprise security and Physical AI product launches as longer-term opportunities. Blackstone comments on CoreWeave financing

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Essential Partners LLC bought a new stake in CoreWeave in the second quarter worth $30,000. MassMutual Private Wealth & Trust FSB raised its stake in CoreWeave by 241.1% during the third quarter. MassMutual Private Wealth & Trust FSB now owns 307 shares of the company’s stock valued at $27,000 after purchasing an additional 217 shares in the last quarter. Burnham & Co LLC purchased a new stake in CoreWeave during the second quarter valued at $32,000. Cassaday & Co Wealth Management LLC bought a new position in CoreWeave during the first quarter valued at $31,000. Finally, Allied Private Wealth LLC bought a new position in CoreWeave during the second quarter valued at $40,000.

CoreWeave Stock Down 2.4%

The firm has a market cap of $24.89 billion, a P/E ratio of -14.86 and a beta of 7.36. The company’s 50-day simple moving average is $83.97 and its 200 day simple moving average is $94.04. 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 posted its earnings results on Tuesday, August 11th. The company reported ($1.14) earnings per share for the quarter, topping analysts’ consensus estimates of ($1.52) by $0.38. CoreWeave had a negative net margin of 25.41% and a negative return on equity of 47.95%. The firm had revenue of $2.58 billion for the quarter. During the same quarter last year, the firm earned ($0.27) earnings per share. The business’s quarterly revenue was up 112.5% on a year-over-year basis. Research analysts anticipate that CoreWeave Inc. will post -4.95 EPS for the current fiscal year.

About CoreWeave

CoreWeave, Inc is a specialized cloud computing company that provides infrastructure designed for artificial intelligence (AI), machine learning, and other high-performance computing workloads. Its platform gives customers access to accelerated computing resources, including graphics processing units (GPUs), along with the networking, storage, and software tools needed to develop, train, and deploy demanding applications.

The company offers cloud services for AI model training and inference, visual effects and rendering, scientific computing, and other data-intensive workloads.