CoreWeave (NASDAQ:CRWV) Stock Jumps 6.3% – Time to Buy?

Shares of CoreWeave Inc. (NASDAQ:CRWV) traded up 6.3% during trading on Friday. The stock traded as high as $47.70 and last traded at $46.40. 59,100,060 shares were traded during mid-day trading, an increase of 84% from the average session volume of 32,106,986 shares. The stock had previously closed at $43.66.

CoreWeave News Roundup

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: AI-cloud stocks rallied as earnings beats from Cloudflare and IREN lifted the sector, supporting a recovery in CoreWeave shares after Thursday’s losses. Article: AI cloud rebound
• Positive Sentiment: Optimism ahead of CoreWeave’s Q3 report is supported by strong AI demand, a reported $104 billion backlog and expectations for rapid revenue growth. These growth indicators could bolster the investment case if the company demonstrates it can convert demand into profitable business. Article: Q3 earnings outlook
• Neutral Sentiment: CoreWeave is due to report earnings Tuesday. The results and outlook may determine whether the recent selloff in AI-cloud stocks was excessive or reflected deeper concerns about the sector. Article: CoreWeave stock gains
• Negative Sentiment: CoreWeave’s bond yield has topped 16%, signaling investors are demanding high returns to lend amid rising AI-infrastructure credit concerns. Elevated borrowing costs could make its debt-funded expansion and refinancing more difficult. Article: CoreWeave bond yield
• Negative Sentiment: Analysts and investors remain concerned about heavy leverage, limited liquidity and thin margins. One earnings preview estimates Q3 guidance implies just a 6.5% adjusted operating margin despite strong revenue growth; a current ratio of 0.46 adds to concerns about financial flexibility. Article: Earnings preview
• Negative Sentiment: Potentially tighter rules and slower permitting for data centers—particularly in Texas, a key market—could raise costs or delay expansion. Broader doubts about AI infrastructure spending and a reported analyst downgrade are additional pressures. Article: Data-center rules

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on CRWV shares. JPMorgan Chase & Co. upgraded CoreWeave from a “neutral” rating to an “overweight” rating and boosted their target price for the stock from $120.00 to $125.00 in a research report on Thursday, September 24th. Btg Pactual set a $125.00 price target on CoreWeave in a report on Monday, September 21st. Citigroup reduced their price objective on CoreWeave from $159.00 to $128.00 and set a “buy” rating on the stock in a research note on Wednesday. Morgan Stanley decreased their price objective on CoreWeave from $99.00 to $70.00 and set an “equal weight” rating on the stock in a report on Friday, October 23rd. Finally, Barclays increased their target price on CoreWeave from $90.00 to $105.00 and gave the company an “equal weight” rating in a research report on Thursday, August 13th. Twenty-seven research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat, CoreWeave presently has an average rating of “Moderate Buy” and an average target price of $129.41.

CoreWeave Trading Up 6.3%

The firm has a market cap of $21.29 billion, a PE ratio of -12.71 and a beta of 7.71. 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 company’s 50 day moving average price is $76.37 and its two-hundred day moving average price is $90.13.

CoreWeave (NASDAQ:CRWV) last released its quarterly earnings results on Tuesday, August 11th. The company reported ($1.14) EPS for the quarter, topping 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 firm had revenue of $2.58 billion during the quarter. During the same period in the prior year, the firm posted ($0.27) earnings per share. CoreWeave’s revenue for the quarter was up 112.5% on a year-over-year basis. As a group, sell-side analysts forecast that CoreWeave Inc. will post -4.97 EPS for the current year.

Insider Transactions at CoreWeave

In related news, CRO Jonathan Jones sold 21,569 shares of the firm’s stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $77.42, for a total transaction of $1,669,871.98. Following the completion of the sale, the executive directly owned 5,392 shares of the company’s stock, valued at approximately $417,448.64. This trade represents a 80.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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, CFO Nitin Agrawal sold 22,579 shares of the business’s stock in a transaction on Monday, October 12th. The shares were sold at an average price of $80.13, for a total value of $1,809,255.27. Following the transaction, the chief financial officer owned 110,017 shares of the company’s stock, valued at approximately $8,815,662.21. The trade was a 17.03% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 4,211,804 shares of company stock valued at $382,310,687. Company insiders own 24.20% of the company’s stock.

Hedge Funds Weigh In On CoreWeave

A number of institutional investors have recently modified their holdings of the stock. Alyeska Investment Group L.P. lifted its stake in shares of CoreWeave by 55.7% during the 2nd quarter. Alyeska Investment Group L.P. now owns 10,891,267 shares of the company’s stock worth $1,084,117,000 after purchasing an additional 3,897,741 shares during the period. State Street Corp grew its position in shares of CoreWeave by 139.7% in the second quarter. State Street Corp now owns 7,058,846 shares of the company’s stock valued at $702,638,000 after purchasing an additional 4,113,873 shares during the period. Bank of America Corp DE grew its position in shares of CoreWeave by 13.1% in the first quarter. Bank of America Corp DE now owns 5,652,129 shares of the company’s stock valued at $437,870,000 after purchasing an additional 653,398 shares during the period. Amundi increased its stake 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 purchasing an additional 2,387,337 shares during the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. increased its stake in CoreWeave by 32.0% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,288,909 shares of the company’s stock valued at $199,410,000 after purchasing an additional 555,128 shares during the last quarter.

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.