CoreWeave (NASDAQ:CRWV) Stock Gets Price Target Cut from Morgan Stanley

CoreWeave (NASDAQ:CRWV) had its price target cut by Morgan Stanley from $99.00 to $70.00 in a research report sent to investors on Friday, MarketBeat Ratings reports. They currently have an equal weight rating on the stock.

A number of other research analysts have also recently issued reports on the stock. Robert W. Baird lifted their price objective on shares of CoreWeave from $100.00 to $130.00 and gave the company an “outperform” rating in a report on Wednesday, August 12th. Sanford C. Bernstein upgraded CoreWeave from a “strong sell” rating to a “hold” rating in a report on Monday, October 19th. Jefferies Financial Group reiterated a “buy” rating on shares of CoreWeave in a report on Thursday, October 15th. JPMorgan Chase & Co. raised CoreWeave from a “neutral” rating to an “overweight” rating and increased their price target for the company from $120.00 to $125.00 in a research report on Thursday, September 24th. Finally, Cantor Fitzgerald restated an “overweight” rating on shares of CoreWeave in a research note on Monday, October 19th. 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, the company currently has an average rating of “Moderate Buy” and a consensus target price of $130.31.

CoreWeave Stock Performance

CRWV opened at $54.24 on Friday. CoreWeave has a 1-year low of $53.50 and a 1-year high of $141.79. The company has a current ratio of 0.46, a quick ratio of 0.46 and a debt-to-equity ratio of 5.53. The company has a market cap of $24.89 billion, a P/E ratio of -14.86 and a beta of 7.36. The company has a fifty day moving average price of $82.95 and a two-hundred day moving average price of $93.85.

CoreWeave (NASDAQ:CRWV) last announced its quarterly earnings data 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. The firm had revenue of $2.58 billion for the quarter. CoreWeave had a negative net margin of 25.41% and a negative return on equity of 47.95%. CoreWeave’s revenue for the quarter was up 112.5% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.27) EPS. Analysts predict that CoreWeave will post -4.96 EPS for the current fiscal year.

Insider Transactions at CoreWeave

In other news, CFO Nitin Agrawal sold 22,579 shares of the business’s stock in a transaction that occurred on Monday, October 12th. The stock was 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 in the company, valued at $8,815,662.21. The trade was a 17.03% decrease in their position. The sale was disclosed in a 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. Also, CEO Michael Intrator sold 78,552 shares of the business’s 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 $6,888,224.88. Following the completion of the transaction, the chief executive officer owned 548,935 shares in the company, valued at $48,136,110.15. The trade was a 12.52% decrease in their position. 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 90 days, insiders have sold 5,102,578 shares of company stock worth $454,017,344. Company insiders own 24.20% of the company’s stock.

Institutional Trading of CoreWeave

A number of hedge funds have recently bought and sold shares of the business. MassMutual Private Wealth & Trust FSB grew its stake in CoreWeave by 241.1% in the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 307 shares of the company’s stock valued at $27,000 after purchasing an additional 217 shares during the period. Essential Partners LLC purchased a new stake in shares of CoreWeave during the 2nd quarter valued at $30,000. Peterson Wealth Services raised its stake in shares of CoreWeave by 153.1% during the 1st quarter. Peterson Wealth Services now owns 405 shares of the company’s stock worth $31,000 after purchasing an additional 245 shares during the period. Cassaday & Co Wealth Management LLC bought a new stake in shares of CoreWeave during the 1st quarter worth $31,000. Finally, Burnham & Co LLC bought a new stake in shares of CoreWeave during the 2nd quarter worth $32,000.

CoreWeave News Summary

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: CoreWeave’s long-term growth case remains substantial. The company reportedly has approximately $104 billion in contracted revenue, has implemented a 25% price increase and is bringing additional data-center capacity online. Bank of America maintained a Buy rating and cited the potential for a 168% year-over-year increase in third-quarter revenue. CoreWeave capacity expansion to drive revenue growth, Bank of America says
• Positive Sentiment: New enterprise products, including a Zero Trust AI Framework and Physical AI Launchables, could broaden CoreWeave’s customer base by addressing security and deployment concerns in robotics, autonomous vehicles and other advanced workloads. Does CoreWeave Change The Enterprise AI Case With New Security Tools?
• Neutral Sentiment: Some analysts and industry executives argue that the AI selloff is overdone and that demand fundamentals remain strong. However, investors are waiting for upcoming third-quarter results to determine whether revenue growth is translating into cash flow and sustainable profits. The AI Rout: Sorting CAPEX Fact From Fiction
• Negative Sentiment: Higher Treasury yields are reducing the appeal of speculative growth stocks and increasing CoreWeave’s borrowing costs. Its balance sheet is highly leveraged, with a debt-to-equity ratio above 5, while its bonds and credit-default swaps have shown signs of investor stress. Analysts have highlighted a potential $76 billion funding gap to support planned expansion. Bernstein puts CoreWeave’s funding gap at $76 billion
• Negative Sentiment: Analyst sentiment has deteriorated. Morgan Stanley reduced its price target from $99 to $70 and assigned an Equal Weight rating, while other analysts have also cut targets amid financing concerns. The downgrades are reinforcing the view that strong AI demand may not offset near-term capital and liquidity risks. Morgan Stanley lowers CoreWeave price target
• Negative Sentiment: Short sellers have profited from the selloff in AI data-center stocks, and concerns about expensive debt, large capital expenditures and uncertain returns could continue to pressure CRWV until the company demonstrates stronger free cash flow. Short Sellers Just Made $6 Billion Betting Against AI Data Center Stocks

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.