CoreWeave (NASDAQ:CRWV) Trading Down 4.9% – Time to Sell?
by Teresa Graham · The Cerbat GemCoreWeave Inc. (NASDAQ:CRWV – Get Free Report)’s stock price fell 4.9% during trading on Wednesday . The stock traded as low as $94.61 and last traded at $94.94. 20,872,746 shares were traded during mid-day trading, a decline of 26% from the average session volume of 28,221,322 shares. The stock had previously closed at $99.83.
CoreWeave News Summary
Here are the key news stories impacting CoreWeave this week:
- Positive Sentiment: CoreWeave launched Physical AI Field Engineering, using expertise acquired through Monolith AI to help industrial customers build, validate and deploy AI across research, engineering and field operations. The initiative could diversify revenue beyond GPU infrastructure and increase the value of CoreWeave’s platform. CoreWeave Launches Physical AI Field Engineering
- Positive Sentiment: Management indicated that customer demand for NVIDIA GPUs exceeds available supply and said AI pricing is rising faster than input costs. Oracle’s reported $664 billion AI cloud backlog also strengthened the broader outlook for infrastructure providers such as CoreWeave. CoreWeave Cannot Get Enough NVIDIA GPUs
- Positive Sentiment: Investor Michael Burry reportedly reduced bearish positions linked to CoreWeave and NVIDIA, potentially easing a source of negative sentiment. A managed AI cloud environment with Parallel Works for DARPA biological research also adds credibility and potential government-sector visibility. Michael Burry Reduces Bearish Bets
- Neutral Sentiment: Situational Awareness, founded by Leopold Aschenbrenner, has reportedly been buying options on CoreWeave. The activity may support trading interest, but options positioning can increase volatility without clearly indicating long-term fundamental conviction. Situational Awareness Active in Options Market
- Negative Sentiment: CEO Michael Intrator, EVP Chen Goldberg and insider Kristen McVeety collectively sold substantial amounts of CRWV stock. The transactions were executed under pre-arranged Rule 10b5-1 plans, reducing their signaling value, but the sales can still weigh on sentiment and highlight elevated valuation concerns. CoreWeave SEC Insider Sale Filing
- Negative Sentiment: CoreWeave remains unprofitable and highly leveraged, with a debt-to-equity ratio of 5.53 and a current ratio of 0.46. Analysts and investors are concerned that rising interest rates, GPU supply constraints and the capital required to expand capacity could pressure cash flow and execution. Risks Facing Neoclouds as Rate Hike Odds Increase
Wall Street Analysts Forecast Growth
Several research analysts have recently issued reports on CRWV shares. Citigroup increased their target price on CoreWeave from $142.00 to $159.00 and gave the stock a “buy” rating in a research report on Friday, August 14th. TD Cowen upgraded shares of CoreWeave to a “buy” rating in a report on Wednesday, July 22nd. Sanford C. Bernstein raised their target price on shares of CoreWeave from $67.00 to $74.00 and gave the company an “underperform” rating in a research note on Wednesday, August 12th. Cantor Fitzgerald set a $176.00 target price on shares of CoreWeave and gave the company an “overweight” rating in a report on Wednesday, August 12th. Finally, Needham & Company LLC reissued a “hold” rating on shares of CoreWeave in a research report on Thursday, August 13th. Twenty-one research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $141.90.
Get Our Latest Stock Report on CRWV
CoreWeave Price Performance
The firm has a 50 day moving average price of $85.54 and a 200 day moving average price of $94.39. The stock has a market cap of $40.76 billion, a P/E ratio of -24.31 and a beta of 7.45. 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 – Get Free Report) last issued its quarterly earnings results 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 net margin of 25.41% and a negative return on equity of 47.95%. The business had revenue of $2.58 billion for the quarter. During the same period in the prior year, the firm earned ($0.27) EPS. CoreWeave’s revenue for the quarter was up 112.5% compared to the same quarter last year. On average, analysts forecast that CoreWeave Inc. will post -5.19 EPS for the current fiscal year.
Insiders Place Their Bets
In other news, CEO Michael Intrator sold 278,560 shares of the business’s stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $97.43, for a total transaction of $27,140,100.80. Following the transaction, the chief executive officer owned 3,138,612 shares of the company’s stock, valued at approximately $305,794,967.16. The trade was a 8.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 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. Also, major shareholder Magnetar Financial Llc sold 307,131 shares of the stock in a transaction on Friday, August 14th. The shares were sold at an average price of $108.75, for a total transaction of $33,400,496.25. Following the completion of the sale, the insider directly owned 220,810 shares in the company, valued at approximately $24,013,087.50. This represents a 58.18% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 7,339,268 shares of company stock valued at $678,455,019. 24.20% of the stock is currently owned by insiders.
Institutional Trading of CoreWeave
Several institutional investors and hedge funds have recently made changes to their positions in CRWV. The Manufacturers Life Insurance Company boosted its holdings in shares of CoreWeave by 7.0% in the second quarter. The Manufacturers Life Insurance Company now owns 23,616 shares of the company’s stock valued at $2,351,000 after purchasing an additional 1,536 shares during the period. Sequoia Financial Advisors LLC increased its holdings in CoreWeave by 3.6% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 4,128 shares of the company’s stock worth $411,000 after purchasing an additional 145 shares during the period. Bienville Capital Management LLC increased its holdings in CoreWeave by 72.6% during the 2nd quarter. Bienville Capital Management LLC now owns 145,183 shares of the company’s stock worth $14,452,000 after purchasing an additional 61,083 shares during the period. National Pension Service raised its position in CoreWeave by 1,194.7% during the 2nd quarter. National Pension Service now owns 524,854 shares of the company’s stock valued at $52,244,000 after purchasing an additional 484,314 shares in the last quarter. Finally, Engineers Gate Manager LP raised its position in CoreWeave by 42.9% during the 2nd quarter. Engineers Gate Manager LP now owns 36,570 shares of the company’s stock valued at $3,640,000 after purchasing an additional 10,981 shares in the last quarter.
CoreWeave Company Profile
CoreWeave, Inc is a specialized cloud computing provider focused on infrastructure for artificial intelligence, machine learning, high-performance computing and other data-intensive workloads. The company provides access to accelerated computing resources, particularly graphics processing units (GPUs), through a cloud platform designed for large-scale training, inference, rendering and scientific computing.
Its offerings include on-demand and reserved GPU instances, cloud storage, high-speed networking, Kubernetes-based container orchestration and managed services for deploying and scaling workloads.