CoreWeave (NASDAQ:CRWV) Trading Down 13.9% Following Insider Selling

Shares of CoreWeave Inc. (NASDAQ:CRWV) fell 13.9% during trading on Wednesday following insider selling activity. The stock traded as low as $85.01 and last traded at $85.69. Approximately 60,226,694 shares were traded during mid-day trading, an increase of 110% from the average session volume of 28,734,582 shares. The stock had previously closed at $99.54.

Specifically, insider Brannin Mcbee sold 50,000 shares of the company’s stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $94.32, for a total transaction of $4,716,000.00. Following the sale, the insider owned 402,852 shares of the company’s stock, valued at approximately $37,997,000.64. This represents a 11.04% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Brannin Mcbee sold 144,000 shares of the stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $94.32, for a total transaction of $13,582,080.00. Following the completion of the sale, the insider owned 258,852 shares in the company, valued at $24,414,920.64. This represents a 35.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other news, insider Brannin Mcbee sold 55,500 shares of CoreWeave stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $94.32, for a total transaction of $5,234,760.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on CRWV shares. Bank of America raised CoreWeave from a “neutral” rating to a “buy” rating and set a $100.00 price objective on the stock in a research note on Tuesday, March 24th. Evercore reissued an “outperform” rating and issued a $150.00 target price on shares of CoreWeave in a report on Wednesday, April 15th. Citigroup boosted their price target on shares of CoreWeave from $155.00 to $158.00 and gave the stock a “buy” rating in a research report on Thursday, May 14th. Sanford C. Bernstein reaffirmed an “underperform” rating on shares of CoreWeave in a research note on Thursday, June 11th. Finally, Weiss Ratings upgraded shares of CoreWeave from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, June 24th. Twenty-one investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $135.00.

CoreWeave News Roundup

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: Rosenblatt reaffirmed a buy rating, and some analysts say Meta fears may be exaggerated given CoreWeave’s large AI backlog and continued compute demand. Coreweave Sell-off Sparks Buying Opportunity, Analyst Says Meta Fears Are Overblown
• Neutral Sentiment: CoreWeave launched ARIA, an AI research agent designed to speed experimentation and model iteration, which is a product-positive update but not a major near-term catalyst. CoreWeave Unveils ARIA to Accelerate AI Research and Agent Development
• Neutral Sentiment: CoreWeave expanded its Livingston headquarters, signaling ongoing growth, though the news does little to offset current investor concerns. CoreWeave Expands HQ with Additional 31,000 SF in Livingston
• Negative Sentiment: Meta’s reported AI cloud ambitions have intensified fears of direct competition in CoreWeave’s core market, pressuring the stock. Stock Market Today, July 1: CoreWeave Stock Tumbles as Meta Cloud Report Raises Customer Concerns
• Negative Sentiment: Multiple large insider sales have renewed concerns about valuation and added to the bearish tone around CRWV. CoreWeave Insider Sales Look Big, But Should Investors Worry?

CoreWeave Price Performance

The company has a quick ratio of 0.31, a current ratio of 0.31 and a debt-to-equity ratio of 3.68. The firm’s 50 day simple moving average is $108.29 and its 200 day simple moving average is $94.80. The company has a market capitalization of $36.59 billion, a PE ratio of -26.29 and a beta of 7.17.

CoreWeave (NASDAQ:CRWV) last announced its earnings results on Thursday, May 7th. The company reported ($1.40) earnings per share for the quarter, missing the consensus estimate of ($1.17) by ($0.23). The firm had revenue of $2.08 billion during the quarter. CoreWeave had a negative net margin of 25.57% and a negative return on equity of 43.07%. The company’s revenue for the quarter was up 111.6% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.60) earnings per share. As a group, research analysts anticipate that CoreWeave Inc. will post -4.57 EPS for the current fiscal year.

Hedge Funds Weigh In On CoreWeave

Hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its holdings in CoreWeave by 275.6% during the 4th quarter. Vanguard Group Inc. now owns 27,920,979 shares of the company’s stock valued at $1,999,421,000 after acquiring an additional 20,487,478 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank lifted its position in shares of CoreWeave by 6,022.0% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 112,768 shares of the company’s stock worth $8,075,000 after purchasing an additional 110,926 shares during the last quarter. Legal & General Group Plc lifted its position in shares of CoreWeave by 8,455.6% during the fourth quarter. Legal & General Group Plc now owns 611,301 shares of the company’s stock worth $43,775,000 after purchasing an additional 604,156 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its stake in shares of CoreWeave by 67.2% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 66,947 shares of the company’s stock valued at $4,794,000 after purchasing an additional 26,907 shares during the period. Finally, Hidden Lake Asset Management LP purchased a new stake in shares of CoreWeave during the third quarter valued at $14,814,000.

CoreWeave Company Profile

CoreWeave is a U.S.-based provider of GPU-accelerated cloud infrastructure designed to support compute-intensive workloads such as artificial intelligence, machine learning, visual effects rendering and other high-performance computing applications. The company supplies access to large fleets of modern GPUs and complementary infrastructure that enable customers to train and deploy large models, run inference at scale, and process graphics-heavy workloads with low latency and high throughput.

CoreWeave’s product offering includes on-demand and dedicated GPU instances, bare-metal servers, private clusters and managed services tailored for enterprise and developer use.