CoreWeave (NASDAQ:CRWV) Shares Gap Up – Still a Buy?

CoreWeave Inc. (NASDAQ:CRWV) shares gapped up before the market opened on Wednesday. The stock had previously closed at $48.73, but opened at $55.97. CoreWeave shares last traded at $58.71, with a volume of 40,296,310 shares changing hands.

Key Headlines Impacting CoreWeave

Investors following CRWV have been watching these headlines:

• Positive Sentiment: New product broadens its platform: CoreWeave launched a managed PostgreSQL database service within its cloud platform, giving AI customers another tool alongside GPU training and inference services. CoreWeave Database announcement
• Neutral Sentiment: Analysts remain divided: Truist, Cantor Fitzgerald and Stifel lowered their price targets, while keeping Buy, Overweight or Hold ratings. Needham reaffirmed Hold, reflecting caution even as some analysts continue to see upside. Analyst target report
• Negative Sentiment: Debt and interest expense remain key risks: The company warned quarterly interest costs could reach $1.15 billion. Its capital-intensive data-center expansion depends on continued access to financing, leaving the stock exposed to high borrowing costs and tighter credit. Invezz financing report

Analyst Ratings Changes

CRWV has been the topic of a number of recent research reports. Wells Fargo & Company reduced their target price on shares of CoreWeave from $160.00 to $115.00 and set an “overweight” rating on the stock in a research report on Monday. Robert W. Baird raised their price target on shares of CoreWeave from $100.00 to $130.00 and gave the company an “outperform” rating in a report on Wednesday, August 12th. Rosenblatt Securities dropped their price target on shares of CoreWeave from $250.00 to $160.00 and set a “buy” rating on the stock in a research note on Monday. Barclays boosted their price objective on shares of CoreWeave from $90.00 to $105.00 and gave the stock an “equal weight” rating in a report on Thursday, August 13th. Finally, Stifel Nicolaus decreased their price objective on shares of CoreWeave from $120.00 to $60.00 and set a “hold” rating for the company in a research report on Wednesday. Twenty-seven analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, CoreWeave currently has an average rating of “Moderate Buy” and a consensus price target of $118.67.

CoreWeave Stock Performance

The company has a market capitalization of $27.62 billion, a PE ratio of -16.50 and a beta of 7.71. The company has a debt-to-equity ratio of 5.53, a quick ratio of 0.46 and a current ratio of 0.46. The company has a 50 day moving average price of $74.13 and a 200 day moving average price of $89.44.

CoreWeave (NASDAQ:CRWV) last released 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. The business had revenue of $2.58 billion during the quarter. CoreWeave had a negative net margin of 25.41% and a negative return on equity of 47.95%. The firm’s quarterly revenue was up 112.5% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.27) EPS. Equities analysts forecast that CoreWeave Inc. will post -4.99 EPS for the current year.

Insider Activity at CoreWeave

In other CoreWeave news, major shareholder Magnetar Financial Llc sold 307,131 shares of the stock in a transaction on Friday, August 14th. The shares were sold at an average price of $108.75, for a total transaction of $33,400,496.25. Following the transaction, the insider directly owned 220,810 shares in the company, valued at $24,013,087.50. This represents a 58.18% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Brannin Mcbee sold 144,000 shares of the firm’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $106.08, for a total transaction of $15,275,520.00. Following the transaction, the insider directly owned 323,263 shares of the company’s stock, valued at approximately $34,291,739.04. This represents a 30.82% decrease in their ownership of the stock. 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 quarter, insiders have sold 3,727,018 shares of company stock valued at $337,495,407. 24.20% of the stock is owned by insiders.

Hedge Funds Weigh In On CoreWeave

Several large investors have recently modified their holdings of the stock. Alyeska Investment Group L.P. increased its holdings in CoreWeave by 55.7% in the second quarter. Alyeska Investment Group L.P. now owns 10,891,267 shares of the company’s stock valued at $1,084,117,000 after buying an additional 3,897,741 shares during the last quarter. 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 valued at $702,638,000 after buying an additional 4,113,873 shares in the last quarter. Bank of America Corp DE lifted its holdings in CoreWeave by 13.1% during the 1st 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% during the 1st quarter. Amundi now owns 3,284,121 shares of the company’s stock worth $254,421,000 after buying an additional 2,387,337 shares during the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. lifted its holdings in CoreWeave by 32.0% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,288,909 shares of the company’s stock worth $199,410,000 after buying an additional 555,128 shares during the last quarter.

CoreWeave Company Profile

CoreWeave is a cloud computing company that provides infrastructure for artificial intelligence, machine learning, and other compute-intensive workloads. Its services include access to graphics processing units (GPUs), cloud storage and networking, and software tools for deploying and managing workloads. The company was founded in 2017 as a cryptocurrency mining business and later shifted its focus to cloud computing. CoreWeave is headquartered in Livingston, New Jersey, and operates data center infrastructure in the United States and Europe, serving customers that need large-scale computing resources.