Shares of CoreWeave Inc. (NASDAQ: CRWV) declined by 7.6% during mid-day trading on Thursday, reaching a low of $68.95 before closing at $69.21. The trading volume spiked to 40,173,088 shares, a significant increase of 67% compared to the average session volume of 24,064,896 shares. This downturn follows a previous closing price of $74.92 and raises questions about the company’s market performance.
Analyst Ratings and Market Reactions
Several brokerages have recently issued mixed opinions on CoreWeave’s stock. Notably, Citizens JMP upgraded the stock from a “market perform” rating to an “outperform” rating, setting a price target of $180.00 in a report dated September 16, 2023. In contrast, Jefferies Financial Group lowered its price target from $180.00 to $155.00 while maintaining a “buy” rating on November 11, 2023.
Overall, the stock has received significant attention from analysts, with two rating it as a “Strong Buy,” sixteen as a “Buy,” twelve as a “Hold,” and three as a “Sell.” As reported by MarketBeat.com, the consensus rating stands at “Moderate Buy” with a price target of $130.14.
Recent Earnings and Financial Performance
CoreWeave recently announced its earnings results on November 10, 2023, reporting earnings per share (EPS) of ($0.22), surpassing the consensus estimate of ($0.36) by $0.14. The company achieved revenues of $1.36 billion for the quarter, exceeding analyst expectations of $1.28 billion. This reflects a substantial revenue growth of 133.7% compared to the same quarter in the previous year, when it reported an EPS of ($1.82).
CoreWeave has also set its fiscal year 2025 guidance, indicating confidence in its ongoing financial strategy.
Insider Transactions and Stakeholder Activity
Recent insider transactions have drawn attention as well. CEO Michael N. Intrator sold 32,455 shares on November 19, 2023, at an average price of $74.71, amounting to a total of $2,424,713.05. Following this transaction, Intrator retains 5,958,600 shares valued at approximately $445,167,006, marking a 0.54% decrease in ownership.
Additionally, insider Brian M. Venturo sold 281,250 shares on November 12, 2023, generating around $24,629,062.50 at an average price of $87.57. Over the last ninety days, insiders have sold a total of 33,685,533 shares worth approximately $4.29 billion.
Institutional Stake Adjustments
Institutional investors have also been active in adjusting their stakes in CoreWeave. Family Legacy Financial Solutions LLC increased its holdings by 166.7% in the third quarter, now owning 200 shares worth $27,000. Other firms, including HighMark Wealth Management LLC and OLD Second National Bank of Aurora, have established new positions, reflecting ongoing interest from institutional investors.
Founded on September 21, 2017, and headquartered in Livingston, NJ, CoreWeave specializes in AI computing solutions, serving a diverse clientele ranging from large enterprises to emerging start-ups. With a focus on innovation, the company continues to navigate a rapidly changing market landscape.
