CoreWeave (NASDAQ:CRWV) Sees Strong Trading Volume After Analyst Upgrade

CoreWeave Inc. (NASDAQ:CRWV) shares saw unusually-strong trading volume on Tuesday after Sanford C. Bernstein upgraded the stock from a strong sell rating to a hold rating. Approximately 30,608,834 shares were traded during mid-day trading, an increase of 2% from the previous session’s volume of 29,923,797 shares. The stock last traded at $63.2930 and had previously closed at $61.12.

CRWV has been the subject of a number of other reports. Northland Securities set a $200.00 price target on CoreWeave in a research note on Wednesday, October 7th. Weiss Ratings reissued a “sell (d-)” rating on shares of CoreWeave in a report on Monday, September 21st. The Goldman Sachs Group upgraded CoreWeave from a “neutral” rating to a “buy” rating and set a $106.00 price objective on the stock in a research report on Monday. Jefferies Financial Group reaffirmed a “buy” rating on shares of CoreWeave in a report on Thursday. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $250.00 target price on shares of CoreWeave in a research report on Thursday, October 1st. Twenty-five investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $132.40.

Insider Transactions at CoreWeave

In related news, CRO Jonathan Jones sold 21,569 shares of CoreWeave stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $77.42, for a total value of $1,669,871.98. Following the transaction, the executive directly owned 5,392 shares of the company’s stock, valued at $417,448.64. The trade was a 80.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available 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, insider Brian M. Venturo sold 65,616 shares of CoreWeave stock in a transaction that occurred on Wednesday, September 30th. The stock was sold at an average price of $87.69, for a total value of $5,753,867.04. Following the completion of the transaction, the insider directly owned 302,526 shares in the company, valued at approximately $26,528,504.94. This represents a 17.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 5,352,578 shares of company stock worth $471,777,344. 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: Goldman Sachs upgraded CoreWeave to Buy and cited strong contract economics, resilient demand and potential upside to a $106 price target. The upgrade helped support the stock after its recent selloff. Goldman Sachs upgrade article
• Positive Sentiment: CoreWeave reported second-quarter revenue of approximately $2.58 billion, up 112% year over year, while its loss per share was narrower than analysts expected. Supporters argue that permitted, powered data centers and a large backlog give the company a valuable position in the AI infrastructure buildout. AI infrastructure demand article
• Positive Sentiment: ARK Investment Management purchased 132,498 CoreWeave shares across two ETFs, signaling continued confidence from a prominent growth investor despite the market turmoil. ARK CoreWeave purchase article
• Neutral Sentiment: J.P. Morgan said the selloff in CoreWeave’s debt poses limited systemic risk to global banks. That may reduce broader financial-contagion concerns, but it does not resolve CoreWeave’s own financing challenges. J.P. Morgan debt-risk article
• Negative Sentiment: HSBC reiterated its bearish view, warning that earnings estimates are excessively optimistic and assigning significant downside based on debt and interest-cost risks. Rising bond yields have intensified investor concerns about CoreWeave’s ability to fund its aggressive expansion. HSBC CoreWeave earnings estimates article
• Negative Sentiment: CoreWeave carries roughly $35 billion of debt, a debt-to-equity ratio of 5.53 and a current ratio of 0.46. With bond yields reportedly approaching distressed levels, investors fear higher refinancing costs and slower progress toward profitability. HSBC downside article

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Alyeska Investment Group L.P. increased its position in shares of CoreWeave by 55.7% during the second quarter. Alyeska Investment Group L.P. now owns 10,891,267 shares of the company’s stock worth $1,084,117,000 after buying an additional 3,897,741 shares during the period. State Street Corp raised its stake in CoreWeave by 139.7% during the second quarter. State Street Corp now owns 7,058,846 shares of the company’s stock worth $702,638,000 after buying an additional 4,113,873 shares during the last quarter. Bank of America Corp DE raised its stake in CoreWeave by 13.1% during the first quarter. Bank of America Corp DE now owns 5,652,129 shares of the company’s stock worth $437,870,000 after buying an additional 653,398 shares during the last quarter. Amundi lifted its holdings in CoreWeave by 266.2% in the first quarter. Amundi now owns 3,284,121 shares of the company’s stock valued at $254,421,000 after buying an additional 2,387,337 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in CoreWeave by 64.7% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,415,103 shares of the company’s stock valued at $140,859,000 after buying an additional 555,999 shares during the period.

CoreWeave Trading Up 3.5%

The company has a debt-to-equity ratio of 5.53, a current ratio of 0.46 and a quick ratio of 0.46. The firm has a market cap of $29.03 billion, a price-to-earnings ratio of -17.25 and a beta of 7.36. The firm’s fifty day moving average is $86.47 and its 200-day moving average is $94.48.

CoreWeave (NASDAQ:CRWV) last issued its quarterly earnings results on Tuesday, August 11th. The company reported ($1.14) earnings per share 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 firm had revenue of $2.58 billion during the quarter. During the same quarter in the previous year, the business posted ($0.27) earnings per share. The business’s revenue was up 112.5% on a year-over-year basis. Equities analysts anticipate that CoreWeave Inc. will post -5.19 earnings per share for the current 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.