CoreWeave (NASDAQ:CRWV) Trading 1.5% Higher – Still a Buy?

CoreWeave Inc. (NASDAQ:CRWV) shares shot up 1.5% during mid-day trading on Wednesday . The stock traded as high as $102.75 and last traded at $101.28. 20,376,749 shares were traded during mid-day trading, a decline of 28% from the average session volume of 28,142,324 shares. The stock had previously closed at $99.81.

Key Stories Impacting CoreWeave

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: CoreWeave closed a $3.1 billion delayed draw term loan facility, giving it more funding to expand its AI cloud platform and support customer deployments. CoreWeave Closes $3.1 Billion Loan Facility, Expanding Access to Public Markets for GPU-Backed Financing
• Positive Sentiment: Some market commentary still argues CoreWeave remains undervalued given its rapid revenue growth and large backlog, which could support the long-term bull case. Why CoreWeave Still Looks Undervalued
• Neutral Sentiment: CoreWeave presented at JPMorgan’s Global Technology, Media and Communications Conference, which may have helped keep investor attention on the company but did not include a clearly market-moving new announcement. CoreWeave, Inc. (CRWV) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript
• Negative Sentiment: Google and Blackstone announced a $5 billion AI cloud joint venture, which some investors see as a direct competitive threat to CoreWeave and other smaller neocloud providers. AI Consolidation Begins: Blackstone & Google Forge an AI Empire (CRWV)
• Negative Sentiment: DA Davidson downgraded CoreWeave to a more cautious stance, adding to worries about valuation, leverage, and the company’s capital-intensive growth model. DA Davidson downgrades CoreWeave (CRWV)

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on CRWV. Needham & Company LLC reaffirmed a “hold” rating on shares of CoreWeave in a research note on Friday, February 27th. Cantor Fitzgerald upped their target price on CoreWeave from $156.00 to $167.00 and gave the stock an “overweight” rating in a research note on Monday, May 11th. Evercore reaffirmed an “outperform” rating and issued a $150.00 target price on shares of CoreWeave in a research note on Wednesday, April 15th. Jefferies Financial Group upped their target price on CoreWeave from $120.00 to $160.00 and gave the stock a “buy” rating in a research note on Monday, May 4th. Finally, JPMorgan Chase & Co. boosted their price objective on CoreWeave from $90.00 to $105.00 and gave the company a “neutral” rating in a research report on Friday, May 8th. Nineteen analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, CoreWeave presently has an average rating of “Moderate Buy” and a consensus price target of $129.63.

CoreWeave Stock Up 1.5%

The company has a quick ratio of 0.31, a current ratio of 0.31 and a debt-to-equity ratio of 3.68. The company has a 50-day simple moving average of $98.56 and a two-hundred day simple moving average of $91.17. The stock has a market cap of $45.33 billion, a P/E ratio of -32.57 and a beta of 7.84.

CoreWeave (NASDAQ:CRWV) last announced its quarterly earnings data on Thursday, February 26th. The company reported ($0.89) earnings per share for the quarter, missing the consensus estimate of ($0.61) by ($0.28). CoreWeave had a negative net margin of 25.57% and a negative return on equity of 43.07%. The company had revenue of $1.57 billion during the quarter. The firm’s quarterly revenue was up 110.4% on a year-over-year basis. On average, equities analysts forecast that CoreWeave Inc. will post -4.15 EPS for the current year.

Insider Buying and Selling

In related news, major shareholder Magnetar Financial Llc sold 1,404,667 shares of the company’s stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $118.30, for a total transaction of $166,172,106.10. Following the completion of the transaction, the insider owned 282,570 shares in the company, valued at $33,428,031. This represents a 83.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Brian M. Venturo sold 1,125,000 shares of the company’s stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $80.86, for a total value of $90,967,500.00. Following the transaction, the insider owned 285,327 shares of the company’s stock, valued at approximately $23,071,541.22. This represents a 79.77% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 24,427,381 shares of company stock valued at $2,745,331,673.

Hedge Funds Weigh In On CoreWeave

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. raised its holdings in shares of CoreWeave by 275.6% during the fourth quarter. Vanguard Group Inc. now owns 27,920,979 shares of the company’s stock valued at $1,999,421,000 after acquiring an additional 20,487,478 shares in the last quarter. Proficio Capital Partners LLC grew its stake in CoreWeave by 446,194.0% in the third quarter. Proficio Capital Partners LLC now owns 17,851,760 shares of the company’s stock worth $2,443,013,000 after purchasing an additional 17,847,760 shares during the period. Bank of America Corp DE grew its stake in CoreWeave by 13.1% in the first quarter. Bank of America Corp DE now owns 5,652,129 shares of the company’s stock worth $437,870,000 after purchasing an additional 653,398 shares during the period. Clear Street Group Inc. grew its stake in CoreWeave by 57.2% in the fourth quarter. Clear Street Group Inc. now owns 4,653,815 shares of the company’s stock worth $333,260,000 after purchasing an additional 1,692,916 shares during the period. Finally, Alyeska Investment Group L.P. grew its stake in CoreWeave by 300.0% in the fourth quarter. Alyeska Investment Group L.P. now owns 4,000,000 shares of the company’s stock worth $286,440,000 after purchasing an additional 3,000,000 shares during the period.

About CoreWeave

CoreWeave is a U.S.-based provider of GPU-accelerated cloud infrastructure designed to support compute-intensive workloads such as artificial intelligence, machine learning, visual effects rendering and other high-performance computing applications. The company supplies access to large fleets of modern GPUs and complementary infrastructure that enable customers to train and deploy large models, run inference at scale, and process graphics-heavy workloads with low latency and high throughput.

CoreWeave’s product offering includes on-demand and dedicated GPU instances, bare-metal servers, private clusters and managed services tailored for enterprise and developer use.