CoreWeave (NASDAQ:CRWV) Shares Gap Up Following Analyst Upgrade

CoreWeave Inc. (NASDAQ:CRWV) shares gapped up before the market opened on Monday after The Goldman Sachs Group upgraded the stock from a neutral rating to a buy rating. The stock had previously closed at $61.39, but opened at $65.82. The Goldman Sachs Group now has a $106.00 price target on the stock. CoreWeave shares last traded at $61.37, with a volume of 18,151,135 shares traded.

Several other equities research analysts have also recently issued reports on CRWV. Rosenblatt Securities reiterated a “buy” rating and issued a $250.00 price objective on shares of CoreWeave in a report on Thursday, October 1st. TD Cowen raised shares of CoreWeave to a “buy” rating in a research note on Wednesday, July 22nd. Raymond James Financial lowered CoreWeave from a “moderate buy” rating to a “hold” rating in a report on Wednesday, July 22nd. Btg Pactual set a $125.00 price objective on shares of CoreWeave in a report on Monday, September 21st. Finally, JPMorgan Chase & Co. raised shares of CoreWeave from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $120.00 to $125.00 in a report on Thursday, September 24th. Twenty-five analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $137.35.

Insider Buying and Selling at CoreWeave

In related news, major shareholder Magnetar Financial Llc sold 307,131 shares of the business’s stock in a transaction on 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 owned 220,810 shares in the company, valued at approximately $24,013,087.50. The trade was a 58.18% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Michael N. Intrator sold 200,000 shares of the business’s stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $66.62, for a total transaction of $13,324,000.00. Following the completion of the transaction, the chief executive officer owned 2,276,815 shares of the company’s stock, valued at approximately $151,681,415.30. This trade represents a 8.07% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 5,660,270 shares of company stock valued at $495,848,089. 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: Goldman Sachs upgrade: The analyst firm cited sufficient demand for CoreWeave’s AI infrastructure and sees substantial upside from current levels. The upgrade was the primary catalyst behind the stock’s advance. CoreWeave Jumps 6% on Goldman Sachs Upgrade
• Positive Sentiment: AI demand remains a supporting factor: CoreWeave has reported a roughly $104 billion backlog, while technology analyst Dan Ives characterized the recent sell-off as a “false narrative” and viewed the decline as a potential buying opportunity. Investor Cathie Wood’s funds also reportedly added to their CoreWeave position. Dan Ives Calls CoreWeave Sell-Off a False Narrative
• Neutral Sentiment: Conflicting analyst views: MoffettNathanson reduced its CoreWeave price target to $89 from $107, showing that analysts remain divided over the company’s valuation and financial risk. CoreWeave Price Target Lowered at MoffettNathanson
• Negative Sentiment: Balance-sheet and insider-selling concerns persist: CoreWeave’s high debt burden, elevated bond yields, weak liquidity and projected leverage continue to raise refinancing and shareholder-dilution risks. Reports that the CEO and co-founders have sold billions of dollars of stock add to investor caution. CoreWeave’s 15% Bond Yield

Hedge Funds Weigh In On CoreWeave

Several hedge funds and other institutional investors have recently bought and sold shares of the company. IFP Advisors Inc increased its position in shares of CoreWeave by 22.2% in the third quarter. IFP Advisors Inc now owns 11,178 shares of the company’s stock valued at $974,000 after buying an additional 2,029 shares in the last quarter. Frank Rimerman Advisors LLC grew its stake in CoreWeave by 29.4% in the 3rd quarter. Frank Rimerman Advisors LLC now owns 3,980 shares of the company’s stock valued at $347,000 after acquiring an additional 905 shares during the last quarter. AlphaStar Capital Management LLC increased its stake in shares of CoreWeave by 5.6% during the 3rd quarter. AlphaStar Capital Management LLC now owns 4,914 shares of the company’s stock worth $428,000 after purchasing an additional 261 shares in the last quarter. Howard Capital Management LLC acquired a new position in shares of CoreWeave during the 3rd quarter worth approximately $745,000. Finally, Cornerstone Enterprises LLC acquired a new position in shares of CoreWeave in the third quarter worth $233,000.

CoreWeave Trading Up 2.6%

The business’s fifty day moving average price is $87.01 and its 200 day moving average price is $94.60. The company has a quick ratio of 0.46, a current ratio of 0.46 and a debt-to-equity ratio of 5.53. The firm has a market capitalization of $28.90 billion, a PE ratio of -17.18 and a beta of 7.36.

CoreWeave (NASDAQ:CRWV) last posted its quarterly earnings data on Tuesday, August 11th. The company reported ($1.14) EPS for the quarter, beating 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 company had revenue of $2.58 billion during the quarter. During the same period in the prior year, the company earned ($0.27) EPS. The company’s revenue was up 112.5% compared to the same quarter last year. As a group, analysts expect that CoreWeave Inc. will post -5.19 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.