CoreWeave (NASDAQ:CRWV) Shares Down 9.9% After Analyst Downgrade

CoreWeave Inc. (NASDAQ:CRWV)’s stock price fell 9.9% during trading on Wednesday after Citigroup lowered their price target on the stock from $159.00 to $128.00. Citigroup currently has a buy rating on the stock. CoreWeave traded as low as $48.02 and last traded at $48.42. 59,504,722 shares traded hands during trading, an increase of 88% from the average session volume of 31,722,889 shares. The stock had previously closed at $53.74.

Several other brokerages have also recently issued reports on CRWV. Truist Financial lifted their price target on CoreWeave from $155.00 to $165.00 and gave the company a “buy” rating in a research report on Monday, August 24th. William Blair initiated coverage on CoreWeave in a report on Wednesday, September 30th. They set an “outperform” rating on the stock. BNP Paribas Exane reiterated an “outperform” rating and issued a $117.00 price target on shares of CoreWeave in a research report on Monday, October 19th. Morgan Stanley cut their price target on shares of CoreWeave from $99.00 to $70.00 and set an “equal weight” rating for the company in a report on Friday, October 23rd. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $150.00 target price (up from $135.00) on shares of CoreWeave in a report on Friday, August 7th. Twenty-seven investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $129.41.

Insider Activity

In other CoreWeave news, CEO Michael Intrator sold 200,000 shares of the firm’s stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $89.18, for a total transaction of $17,836,000.00. Following the completion of the sale, the chief executive officer directly owned 1,876,815 shares in the company, valued at approximately $167,374,361.70. This trade represents a 9.63% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Magnetar Financial Llc sold 307,131 shares of CoreWeave stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $108.75, for a total value of $33,400,496.25. Following the transaction, the insider directly owned 220,810 shares in the company, valued at approximately $24,013,087.50. This trade represents a 58.18% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 4,211,804 shares of company stock worth $382,310,687. 24.20% of the stock is owned by corporate insiders.

Key Stories Impacting CoreWeave

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: CoreWeave’s roughly $104 billion revenue backlog and rapid growth offer a counterpoint to the selloff, though fulfilling those contracts depends on the company’s ability to build and finance capacity. Article: CoreWeave More Than Halved Over the Past 6 Months
• Neutral Sentiment: Some analysts see substantial potential in the backlog, but the outlook depends on execution and access to capital. Article: Counterparty Concentration and Depreciation Define CoreWeave Now
• Negative Sentiment: Election results prompted fears that new state leaders could pursue data-center moratoriums or other restrictions. Texas is estimated to account for a substantial share of planned U.S. data-center power capacity, making possible delays there a particular concern for infrastructure providers. Article: Texas Blue Wave Could Threaten Planned Data-Center Power
• Negative Sentiment: CoreWeave shares and bonds sold off as investors reassessed whether political resistance could slow data-center construction and weaken growth prospects. Article: CRWV Stock Drops and Bonds Tumble After Election Results
• Negative Sentiment: Coverage also highlighted CoreWeave’s high debt burden, interest costs, and reliance on a concentrated customer base. Those risks may amplify concerns about funding its expansion, while reports of insider selling added pressure. Article: CoreWeave’s Bond Yield Is a Warning for AI Debt

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CRWV. State Street Corp lifted its position in CoreWeave by 139.7% during the 2nd 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 in the last quarter. Alyeska Investment Group L.P. boosted its holdings in CoreWeave by 55.7% during the second quarter. Alyeska Investment Group L.P. now owns 10,891,267 shares of the company’s stock worth $1,084,117,000 after buying an additional 3,897,741 shares during the last quarter. Amundi boosted its holdings in CoreWeave by 266.2% during the first quarter. Amundi now owns 3,284,121 shares of the company’s stock worth $254,421,000 after buying an additional 2,387,337 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in shares of CoreWeave during the 2nd quarter worth about $127,936,000. Finally, Jennison Associates LLC acquired a new position in shares of CoreWeave during the 1st quarter worth about $95,135,000.

CoreWeave Trading Down 9.9%

The company has a market capitalization of $22.22 billion, a P/E ratio of -13.27 and a beta of 7.71. The business has a 50 day moving average price of $78.05 and a 200 day moving average price of $90.65. The company has a current ratio of 0.46, a quick ratio of 0.46 and a debt-to-equity ratio of 5.53.

CoreWeave (NASDAQ:CRWV) last released its quarterly earnings data on Tuesday, August 11th. The company reported ($1.14) earnings per share for the quarter, beating the consensus estimate of ($1.52) by $0.38. CoreWeave had a negative return on equity of 47.95% and a negative net margin of 25.41%. The business had revenue of $2.58 billion for the quarter. During the same quarter last year, the firm earned ($0.27) EPS. The company’s revenue for the quarter was up 112.5% on a year-over-year basis. Analysts anticipate that CoreWeave Inc. will post -4.97 EPS for the current year.

CoreWeave Company Profile

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.