CoreWeave (NASDAQ:CRWV) Trading Down 5.6% – Here’s Why

CoreWeave Inc. (NASDAQ:CRWV) dropped 5.6% during mid-day trading on Monday . The company traded as low as $106.61 and last traded at $111.29. Approximately 29,579,258 shares changed hands during trading, an increase of 3% from the average session volume of 28,590,139 shares. The stock had previously closed at $117.95.

Wall Street Analysts Forecast Growth

CRWV has been the subject of a number of analyst reports. Citizens Jmp restated a “market outperform” rating and set a $180.00 target price on shares of CoreWeave in a report on Friday, February 27th. Needham & Company LLC reiterated a “hold” rating on shares of CoreWeave in a report on Friday, February 27th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $135.00 price target on shares of CoreWeave in a research report on Friday, May 8th. BNP Paribas Exane initiated coverage on CoreWeave in a research note on Tuesday, June 2nd. They set an “outperform” rating and a $192.00 price objective for the company. Finally, Mizuho raised their price objective on CoreWeave from $105.00 to $110.00 and gave the company a “neutral” rating in a research report on Friday, May 8th. Twenty research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $131.52.

CoreWeave Trading Down 5.6%

The stock’s fifty day simple moving average is $110.95 and its 200-day simple moving average is $93.99. The company has a debt-to-equity ratio of 3.68, a current ratio of 0.31 and a quick ratio of 0.31. The firm has a market cap of $49.81 billion, a PE ratio of -35.78 and a beta of 7.18.

CoreWeave (NASDAQ:CRWV) last posted its quarterly 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 for the quarter. CoreWeave had a negative net margin of 25.57% and a negative return on equity of 43.07%. The business’s revenue was up 111.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.60) EPS. On average, sell-side analysts forecast that CoreWeave Inc. will post -4.57 earnings per share for the current year.

Insider Activity

In other news, Director Jack D. Cogen sold 986,540 shares of the business’s stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $107.80, for a total value of $106,349,012.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Brian M. Venturo sold 1,125,000 shares of the business’s stock in a transaction on Monday, April 6th. The stock was sold at an average price of $80.86, for a total transaction of $90,967,500.00. Following the completion of the sale, the insider directly owned 285,327 shares of the company’s stock, valued at approximately $23,071,541.22. The trade was a 79.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 27,905,074 shares of company stock valued at $3,163,836,081 in the last three months.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CRWV. Vanguard Group Inc. boosted its position in CoreWeave by 275.6% during the fourth quarter. Vanguard Group Inc. now owns 27,920,979 shares of the company’s stock worth $1,999,421,000 after acquiring an additional 20,487,478 shares during the last quarter. Proficio Capital Partners LLC raised its holdings in CoreWeave by 446,194.0% in the 3rd quarter. Proficio Capital Partners LLC now owns 17,851,760 shares of the company’s stock valued at $2,443,013,000 after acquiring an additional 17,847,760 shares during the last quarter. Bank of America Corp DE raised its holdings in CoreWeave by 13.1% in the 1st quarter. Bank of America Corp DE now owns 5,652,129 shares of the company’s stock valued at $437,870,000 after acquiring an additional 653,398 shares during the last quarter. Clear Street Group Inc. lifted its stake in CoreWeave by 57.2% in the 4th quarter. Clear Street Group Inc. now owns 4,653,815 shares of the company’s stock worth $333,260,000 after purchasing an additional 1,692,916 shares in the last quarter. Finally, Alyeska Investment Group L.P. lifted its stake in CoreWeave by 300.0% in the 4th quarter. Alyeska Investment Group L.P. now owns 4,000,000 shares of the company’s stock worth $286,440,000 after purchasing an additional 3,000,000 shares in the last quarter.

About CoreWeave

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.