CoreWeave (NASDAQ:CRWV) Stock Price Up 5.6% – Still a Buy?

CoreWeave Inc. (NASDAQ:CRWV)’s share price shot up 5.6% during mid-day trading on Monday. The stock traded as high as $50.10 and last traded at $48.98. Approximately 47,663,333 shares changed hands during trading, an increase of 48% from the average session volume of 32,202,916 shares. The stock had previously closed at $46.40.

CoreWeave News Roundup

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: CoreWeave signed a multi-year agreement to provide Wayve with cloud-computing capacity and Blackwell AI infrastructure for autonomous-driving development. The deal adds a “physical AI” customer and could support demand for its computing services. CoreWeave lands multi-year deal to provide Wayve with cloud computing power
• Neutral Sentiment: Investors are awaiting CoreWeave’s Q3 report, with coverage highlighting strong expected revenue growth but also substantial interest expense. Results and management’s outlook may clarify whether growth can offset the costs of financing its expansion. CoreWeave Q3 earnings: 159% revenue growth vs $900M quarterly interest on Tuesday
• Negative Sentiment: Credit risk is weighing on the outlook: reports say yields on CoreWeave bonds have risen above 15% and, in some cases, 16%–17%. That signals lenders are demanding a high return and raises concern about the cost and availability of funding for the company’s capital-intensive expansion. CoreWeave confronts ‘doom cycle’ narrative as neocloud credit risk overshadows growth
• Negative Sentiment: Texas data-center politics are another risk. CoreWeave has reached out to the governor-elect on community concerns, but coverage suggests that unresolved questions around infrastructure and local impacts could affect project development. CoreWeave left one thing out of its friendly letter to Texas
• Negative Sentiment: Rosenblatt and Wells Fargo cut their price targets, to $160 and $115 respectively, although both retained bullish ratings. The cuts temper the positive signal from those recommendations. Wells Fargo analyst recommendations

Wall Street Analyst Weigh In

Several analysts have recently weighed in on CRWV shares. BTIG Research began coverage on shares of CoreWeave in a research report on Wednesday, July 22nd. They set a “buy” rating on the stock. Raymond James Financial reiterated an “outperform” rating and issued a $75.00 target price on shares of CoreWeave in a research report on Monday, October 26th. JPMorgan Chase & Co. raised CoreWeave from a “neutral” rating to an “overweight” rating and increased their target price for the company from $120.00 to $125.00 in a research note on Thursday, September 24th. HSBC restated a “reduce” rating and set a $39.00 price target on shares of CoreWeave in a research report on Tuesday, October 20th. Finally, Piper Sandler dropped their price target on CoreWeave from $153.00 to $124.00 and set an “overweight” rating for the company in a research note on Wednesday, October 21st. Twenty-seven investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, CoreWeave presently has a consensus rating of “Moderate Buy” and an average target price of $125.76.

CoreWeave Stock Up 5.6%

The stock has a market cap of $22.48 billion, a P/E ratio of -13.42 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 has a 50-day simple moving average of $75.56 and a two-hundred day simple moving average of $89.88.

CoreWeave (NASDAQ:CRWV) last issued its earnings results on Tuesday, August 11th. The company reported ($1.14) earnings per share (EPS) for the quarter, topping the consensus estimate 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 for the quarter. During the same quarter in the prior year, the business posted ($0.27) EPS. The firm’s revenue for the quarter was up 112.5% on a year-over-year basis. On average, equities analysts forecast that CoreWeave Inc. will post -4.97 EPS for the current year.

Insider Buying and Selling at CoreWeave

In related news, major shareholder Magnetar Financial Llc sold 307,131 shares of the firm’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $108.75, for a total value of $33,400,496.25. Following the sale, the insider directly owned 220,810 shares of the company’s stock, valued at $24,013,087.50. This trade represents a 58.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Kristen Mcveety sold 156,000 shares of the business’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $81.63, for a total value of $12,734,280.00. Following the transaction, the insider owned 123,313 shares in the company, valued at approximately $10,066,040.19. This represents a 55.85% 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. Over the last quarter, insiders have sold 4,021,100 shares of company stock worth $364,306,253. 24.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On CoreWeave

A number of large investors have recently made changes to their positions in CRWV. Alyeska Investment Group L.P. lifted its stake 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 worth $1,084,117,000 after acquiring an additional 3,897,741 shares during the period. State Street Corp increased its position in CoreWeave by 139.7% during the 2nd 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 increased its position 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 valued at $437,870,000 after purchasing an additional 653,398 shares during the period. Amundi raised its holdings in CoreWeave by 266.2% in the 1st quarter. Amundi now owns 3,284,121 shares of the company’s stock worth $254,421,000 after purchasing an additional 2,387,337 shares in the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. raised its holdings in CoreWeave by 32.0% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,288,909 shares of the company’s stock worth $199,410,000 after purchasing an additional 555,128 shares in the last quarter.

About CoreWeave

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.

Co-founder Michael Intrator serves as CoreWeave’s chief executive officer.