CoreWeave (NASDAQ:CRWV) Hits New 1-Year Low – Time to Sell?

Shares of CoreWeave Inc. (NASDAQ:CRWV) reached a new 52-week low on Wednesday. The company traded as low as $57.24 and last traded at $62.13, with a volume of 93,332,265 shares changing hands. The stock had previously closed at $61.12.

Key Headlines Impacting CoreWeave

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: Growth outlook remains strong. Bank of America maintained its Buy rating and $140 price target, forecasting third-quarter revenue growth of 168% year over year as new data-center capacity comes online. CoreWeave capacity expansion to drive revenue growth, Bank of America says
• Positive Sentiment: Some industry executives and analysts remain constructive. Blackstone’s Jon Gray said CoreWeave can “find a way through” its financing challenges, while Nvidia CEO Jensen Huang and SpaceX-related commentary supported the view that demand for AI computing remains durable. One analyst also disclosed adding to a CoreWeave position. Blackstone’s Jon Gray says CoreWeave can find a way through financing pressure
• Neutral Sentiment: Analyst views are sharply divided. While Bernstein became more bearish and cut its price target, other analysts continue to argue that the stock may be approaching fair value after a major decline. This disagreement is likely to keep CRWV highly volatile ahead of third-quarter results expected in early November. Wall Street’s big CoreWeave stock bear is now even more bearish
• Negative Sentiment: Financing concerns are driving the selloff. Bernstein estimated CoreWeave could face a $76 billion funding gap—more than triple Goldman Sachs’ estimate—raising questions about how the company will fund its planned infrastructure buildout. Bernstein puts CoreWeave’s funding gap at $76 billion
• Negative Sentiment: Credit-market stress has intensified. CoreWeave’s bonds have moved into distressed territory, credit-default-swap spreads reportedly exceeded 1,000 basis points, and debt due in 2032 traded at a yield as high as 9.625%. Investors fear expensive refinancing, weaker liquidity and the possibility that debt-funded growth may not generate returns quickly enough. The Neocloud Bloodbath: NBIS, IREN, and CRWV Selloff Continues

Analysts Set New Price Targets

A number of research firms have issued reports on CRWV. Rothschild & Co Redburn began coverage on CoreWeave in a research note on Monday, September 21st. They set a “sell” rating and a $54.00 price target for the company. Raymond James Financial lowered shares of CoreWeave from a “moderate buy” rating to a “hold” rating in a research report on Wednesday, July 22nd. Jefferies Financial Group reiterated a “buy” rating on shares of CoreWeave in a research note on Thursday, October 15th. Btg Pactual set a $125.00 price objective on shares of CoreWeave in a research note on Monday, September 21st. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $150.00 price objective on shares of CoreWeave in a report on Friday, August 7th. Twenty-five analysts have rated the stock with a Buy rating, eight have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $131.57.

CoreWeave Trading Down 10.1%

The stock has a fifty day moving average of $83.97 and a 200 day moving average of $94.04. The company has a market capitalization of $25.51 billion, a P/E ratio of -15.23 and a beta of 7.36. The company has a debt-to-equity ratio of 5.53, a quick ratio of 0.46 and a current ratio of 0.46.

CoreWeave (NASDAQ:CRWV) last released its earnings results on Tuesday, August 11th. The company reported ($1.14) earnings per share for the quarter, beating the consensus estimate 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 company had revenue of $2.58 billion for the quarter. During the same quarter last 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, equities research analysts anticipate that CoreWeave Inc. will post -4.95 EPS for the current fiscal year.

Insider Activity

In related news, major shareholder Magnetar Financial Llc sold 307,131 shares of the business’s stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $108.75, for a total transaction of $33,400,496.25. Following the completion of the transaction, the insider directly owned 220,810 shares in the company, valued at approximately $24,013,087.50. The trade was a 58.18% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Michael Intrator sold 200,000 shares of the business’s stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $66.62, for a total value of $13,324,000.00. Following the transaction, the chief executive officer owned 2,276,815 shares of the company’s stock, valued at approximately $151,681,415.30. This trade represents a 8.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 5,352,578 shares of company stock worth $471,777,344 in the last ninety days. Corporate insiders own 24.20% of the company’s stock.

Hedge Funds Weigh In On CoreWeave

Several large investors have recently added to or reduced their stakes in the company. Wedbush Securities Inc. lifted its holdings in CoreWeave by 28.8% during the third quarter. Wedbush Securities Inc. now owns 3,746 shares of the company’s stock valued at $326,000 after purchasing an additional 838 shares in the last quarter. Inspire Investing LLC boosted its position in shares of CoreWeave by 75.7% in the third quarter. Inspire Investing LLC now owns 32,547 shares of the company’s stock worth $2,835,000 after purchasing an additional 14,022 shares during the period. Lake Street Private Wealth LLC increased its stake in shares of CoreWeave by 42.3% in the third quarter. Lake Street Private Wealth LLC now owns 43,353 shares of the company’s stock worth $3,777,000 after purchasing an additional 12,885 shares in the last quarter. Brookstone Capital Management raised its position in shares of CoreWeave by 25.3% during the 3rd quarter. Brookstone Capital Management now owns 8,197 shares of the company’s stock valued at $714,000 after purchasing an additional 1,657 shares during the period. Finally, Root Financial Partners LLC purchased a new stake in CoreWeave in the 3rd quarter worth $51,000.

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.