CoreWeave (NASDAQ:CRWV) Trading Down 11.4% Following Insider Selling

CoreWeave Inc. (NASDAQ:CRWV)’s stock price was down 11.4% during mid-day trading on Friday following insider selling activity. The stock traded as low as $110.55 and last traded at $114.15. Approximately 48,072,562 shares traded hands during mid-day trading, an increase of 71% from the average daily volume of 28,167,588 shares. The stock had previously closed at $128.84.

Specifically, EVP Chen Goldberg sold 19,222 shares of the firm’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $125.00, for a total value of $2,402,750.00. Following the completion of the transaction, the executive vice president owned 62,345 shares in the company, valued at $7,793,125. This trade represents a 23.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael N. Intrator sold 107,693 shares of CoreWeave stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $127.59, for a total value of $13,740,549.87. Following the transaction, the chief executive officer directly owned 4,862,666 shares of the company’s stock, valued at $620,427,554.94. This trade represents a 2.17% 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. In related news, CEO Michael N. Intrator sold 200,000 shares of the stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $127.59, for a total value of $25,518,000.00. Following the sale, the chief executive officer directly owned 4,666,501 shares of the company’s stock, valued at approximately $595,398,862.59. This represents a 4.11% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on CRWV shares. The Goldman Sachs Group began coverage on shares of CoreWeave in a research report on Monday, January 12th. They set a “neutral” rating and a $86.00 target price for the company. Citigroup lifted their price objective on CoreWeave from $126.00 to $155.00 and gave the stock a “buy” rating in a research report on Friday, May 1st. Evercore reaffirmed an “outperform” rating and issued a $150.00 target price on shares of CoreWeave in a research note on Wednesday, April 15th. HC Wainwright reissued a “buy” rating and set a $180.00 price target on shares of CoreWeave in a research report on Monday, March 2nd. Finally, Wells Fargo & Company boosted their price target on CoreWeave from $135.00 to $155.00 and gave the stock an “overweight” rating in a report on Friday. Twenty investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, CoreWeave has a consensus rating of “Moderate Buy” and an average price target of $131.09.

Key Stories Impacting CoreWeave

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: CoreWeave reported record bookings and a huge backlog, reinforcing strong demand for its AI cloud infrastructure and supporting the long-term growth narrative. CoreWeave Reports ‘Strongest’ Bookings In Company History
• Positive Sentiment: Revenue for Q1 came in above expectations, showing that CoreWeave is still benefiting from explosive AI infrastructure demand. CoreWeave (CRWV) Reports Q1 Loss, Tops Revenue Estimates
• Neutral Sentiment: Analyst price-target increases from JPMorgan and Mizuho suggest Wall Street still sees value in CRWV, but both firms kept neutral ratings, limiting the bullish impact. JPMorgan and Mizuho target updates
• Negative Sentiment: The Q2 revenue outlook came in below consensus, raising concerns that backlog-to-revenue conversion may be slower than investors expected. CoreWeave shares plunge. Revenue doubles but AI costs are rising.
• Negative Sentiment: CoreWeave also raised its capital spending outlook, which reinforces concerns that growth is still being funded by aggressive investment and debt. Why CoreWeave stock is falling despite strong AI revenue growth?
• Negative Sentiment: The company’s quarterly loss was wider than expected, and multiple reports highlighted operating costs rising faster than revenue, pressuring sentiment on profitability. WSJ: CoreWeave Widens First-Quarter Loss as Costs Outpace Revenue Growth
• Negative Sentiment: Recent insider and shareholder selling, including large sales by Magnetar and company executives, is adding short-term pressure to the stock. Magnetar SEC filing

CoreWeave Trading Down 11.4%

The company has a current ratio of 0.46, a quick ratio of 0.46 and a debt-to-equity ratio of 4.46. The stock has a market capitalization of $50.56 billion, a price-to-earnings ratio of -35.67 and a beta of 7.84. The business has a 50 day simple moving average of $94.19 and a 200-day simple moving average of $92.34.

CoreWeave (NASDAQ:CRWV) last released its earnings results on Thursday, February 26th. The company reported ($0.89) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.61) by ($0.28). CoreWeave had a negative return on equity of 33.82% and a negative net margin of 22.75%.The company had revenue of $1.57 billion during the quarter. The business’s revenue was up 110.4% compared to the same quarter last year. On average, equities analysts predict that CoreWeave Inc. will post -4.15 earnings per share for the current year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Sivia Capital Partners LLC acquired a new stake in CoreWeave during the second quarter worth about $39,824,000. Quantbot Technologies LP purchased a new stake in shares of CoreWeave during the 2nd quarter worth about $311,000. Invesco Ltd. acquired a new stake in CoreWeave during the 2nd quarter worth approximately $882,000. First Trust Advisors LP purchased a new position in CoreWeave in the second quarter valued at approximately $20,260,000. Finally, Baird Financial Group Inc. purchased a new position in CoreWeave in the second quarter valued at approximately $455,000.

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.