CoreWeave (NASDAQ:CRWV) Shares Down 11.9% – Time to Sell?

Shares of CoreWeave Inc. (NASDAQ:CRWV) fell 11.9% during mid-day trading on Friday. The stock traded as low as $59.90 and last traded at $61.39. Approximately 93,769,023 shares were traded during mid-day trading, an increase of 216% from the average daily volume of 29,631,254 shares. The stock had previously closed at $69.69.

More CoreWeave News

Here are the key news stories impacting CoreWeave this week:

• Positive Sentiment: JPMorgan analyst Samik Chatterjee called the recent selloff “overdone,” arguing that demand for AI computing remains robust and that CoreWeave can generate healthy returns as it brings additional capacity online. JPMorgan says Wall Street is overreacting
• Positive Sentiment: ARK Invest bought CoreWeave shares during the selloff, while Nvidia CEO Jensen Huang expressed confidence in the company. These endorsements support the bullish view that long-term AI infrastructure demand remains intact. Cathie Wood bought CoreWeave shares
• Positive Sentiment: CoreWeave has reportedly highlighted a backlog of approximately $104 billion, and Bank of America maintained a Buy rating and $140 price target, citing strong growth potential and the company’s ability to deploy computing capacity at scale. Bank of America backs CoreWeave
• Neutral Sentiment: Analyst opinion remains divided. Some firms describe the selloff as excessive and retain high price targets, but others have reduced targets because of funding, execution and customer-concentration risks. The conflicting views are contributing to elevated volatility. How to trade CoreWeave’s slow moving crisis
• Negative Sentiment: CoreWeave’s bonds have sold off sharply, with some unsecured debt trading near 79% of face value and yields on longer-dated notes reaching roughly 14.5% to 15%. Credit-default swap pricing reportedly implies a more than 50% probability of default over five years, raising concerns about refinancing and future capital needs. Why CoreWeave stock is falling
• Negative Sentiment: Investors remain worried that rising borrowing costs will undermine the economics of CoreWeave’s rapid expansion. The company reported negative free cash flow of approximately $5.7 billion in the latest quarter and carries substantial leverage, making weaker financing conditions particularly damaging. CoreWeave credit-default swaps hit distress levels
• Negative Sentiment: Gartner’s warning that as many as 80% of neocloud providers may not survive independently by 2030 has intensified concerns about competition, customer concentration and the durability of AI infrastructure spending. Gartner warns most neoclouds may not survive
• Negative Sentiment: Recent insider sales by CFO Nitin Agrawal and CRO Jonathan Jones added to investor unease, although the transactions were conducted under pre-arranged plans and were partly related to tax withholding. CoreWeave insider sale

Wall Street Analyst Weigh In

A number of equities analysts have commented on CRWV shares. Mizuho lowered their price objective on CoreWeave from $115.00 to $88.00 and set a “neutral” rating on the stock in a research note on Thursday. Citigroup lifted their price objective on CoreWeave from $142.00 to $159.00 and gave the company a “buy” rating in a report on Friday, August 14th. Robert W. Baird upped their target price on CoreWeave from $100.00 to $130.00 and gave the company an “outperform” rating in a research report on Wednesday, August 12th. Weiss Ratings reissued a “sell (d-)” rating on shares of CoreWeave in a report on Monday, September 21st. Finally, Truist Financial increased their target price on CoreWeave from $155.00 to $165.00 and gave the stock a “buy” rating in a report on Monday, August 24th. Twenty-four investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $139.82.

CoreWeave Stock Performance

The company has a debt-to-equity ratio of 5.53, a current ratio of 0.46 and a quick ratio of 0.46. The stock has a 50-day simple moving average of $87.01 and a 200-day simple moving average of $94.42. The stock has a market cap of $28.17 billion, a P/E ratio of -16.82 and a beta of 7.36.

CoreWeave (NASDAQ:CRWV) last issued its earnings results on Tuesday, August 11th. The company reported ($1.14) EPS for the quarter, topping the consensus estimate of ($1.52) by $0.38. The firm had revenue of $2.58 billion during the quarter. CoreWeave had a negative return on equity of 47.95% and a negative net margin of 25.41%. The firm’s revenue was up 112.5% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.27) EPS. Research analysts forecast that CoreWeave Inc. will post -5.19 earnings per share for the current year.

Insider Activity at CoreWeave

In related news, CFO Nitin Agrawal sold 22,579 shares of the stock in a transaction that occurred on Monday, October 12th. The shares were sold at an average price of $80.13, for a total value of $1,809,255.27. Following the completion of the transaction, the chief financial officer owned 110,017 shares of the company’s stock, valued at $8,815,662.21. This represents a 17.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Brannin Mcbee sold 56,531 shares of the stock in a transaction that occurred on Wednesday, September 30th. The shares were sold at an average price of $87.69, for a total transaction of $4,957,203.39. Following the completion of the transaction, the insider directly owned 392,279 shares of the company’s stock, valued at approximately $34,398,945.51. The trade was a 12.60% 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. Insiders sold a total of 5,910,270 shares of company stock worth $514,630,589 in the last ninety days. Insiders own 24.20% of the company’s stock.

Institutional Trading of CoreWeave

A number of hedge funds and other institutional investors have recently modified their holdings of CRWV. Public Employees Retirement System of Ohio acquired a new position in CoreWeave in the 2nd quarter worth about $15,543,000. California State Teachers Retirement System boosted its stake in shares of CoreWeave by 25.5% during the first quarter. California State Teachers Retirement System now owns 320,011 shares of the company’s stock valued at $24,791,000 after purchasing an additional 64,960 shares in the last quarter. Bank of New York Mellon Corp grew its holdings in shares of CoreWeave by 12.6% during the first quarter. Bank of New York Mellon Corp now owns 353,702 shares of the company’s stock worth $27,401,000 after purchasing an additional 39,599 shares during the last quarter. Ardmore Road Asset Management LP grew its holdings in shares of CoreWeave by 3,410.0% during the first quarter. Ardmore Road Asset Management LP now owns 351,000 shares of the company’s stock worth $27,192,000 after purchasing an additional 341,000 shares during the last quarter. Finally, TD Waterhouse Canada Inc. grew its holdings in shares of CoreWeave by 30.6% during the second quarter. TD Waterhouse Canada Inc. now owns 73,470 shares of the company’s stock worth $7,313,000 after purchasing an additional 17,196 shares during the last quarter.

About CoreWeave

CoreWeave, Inc is a specialized cloud computing provider focused on infrastructure for artificial intelligence, machine learning and other data-intensive workloads. The company offers access to accelerated computing resources, including graphics processing units (GPUs), alongside central processing units, high-performance storage, networking and data center capacity.

Its platform supports AI model training, fine-tuning and inference, as well as visual effects, rendering, scientific computing and other demanding applications.