CoreWeave (NASDAQ:CRWV) Stock Falls 9.9% on 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. Approximately 59,504,722 shares were traded during mid-day trading, an increase of 88% from the average daily volume of 31,722,889 shares. The stock had previously closed at $53.74.

A number of other brokerages have also issued reports on CRWV. Moffett Nathanson set a $89.00 price target on shares of CoreWeave in a research note on Monday, October 19th. Truist Financial upped their target price on shares of CoreWeave from $155.00 to $165.00 and gave the company a “buy” rating in a research note on Monday, August 24th. Rosenblatt Securities reiterated a “buy” rating and issued a $250.00 price target on shares of CoreWeave in a research note on Thursday, October 1st. Sanford C. Bernstein lowered CoreWeave from a “hold” rating to a “strong sell” rating in a report on Monday, October 26th. Finally, TD Cowen raised CoreWeave to a “buy” rating in a report on Wednesday, July 22nd. Twenty-seven research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $129.41.

Insider Transactions at CoreWeave

In other news, insider Kristen J. Mcveety sold 156,000 shares of CoreWeave stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $81.63, for a total value of $12,734,280.00. Following the completion of the transaction, the insider directly owned 123,313 shares of the company’s stock, valued at approximately $10,066,040.19. The trade was a 55.85% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael N. Intrator sold 200,000 shares of the business’s stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $89.18, for a total transaction of $17,836,000.00. Following the sale, the chief executive officer directly owned 1,876,815 shares of the company’s stock, valued at approximately $167,374,361.70. This represents a 9.63% 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 the last three months, insiders have sold 4,211,804 shares of company stock worth $382,310,687. 24.20% of the stock is currently owned by insiders.

Key Headlines 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 Investors Weigh In On CoreWeave

Several large investors have recently added to or reduced their stakes in CRWV. MassMutual Private Wealth & Trust FSB grew its position in shares of CoreWeave by 241.1% during the third quarter. MassMutual Private Wealth & Trust FSB now owns 307 shares of the company’s stock worth $27,000 after acquiring an additional 217 shares during the last quarter. Essential Partners LLC bought a new stake in shares of CoreWeave during the second quarter valued at approximately $30,000. Peterson Wealth Services boosted its position in shares of CoreWeave by 153.1% during the first quarter. Peterson Wealth Services now owns 405 shares of the company’s stock worth $31,000 after buying an additional 245 shares during the period. Cassaday & Co Wealth Management LLC acquired a new position in shares of CoreWeave during the first quarter worth approximately $31,000. Finally, Burnham & Co LLC bought a new position in CoreWeave in the 2nd quarter worth approximately $32,000.

CoreWeave Price Performance

The company has a debt-to-equity ratio of 5.53, a quick ratio of 0.46 and a current ratio of 0.46. The firm 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 fifty day moving average of $78.05 and a 200-day moving average of $90.65.

CoreWeave (NASDAQ:CRWV) last announced its quarterly earnings results on Tuesday, August 11th. The company reported ($1.14) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 company had revenue of $2.58 billion during the quarter. During the same quarter last year, the firm posted ($0.27) EPS. The company’s revenue was up 112.5% compared to the same quarter last year. On average, sell-side analysts forecast that CoreWeave Inc. will post -4.97 EPS for the current fiscal 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.