TLDR
- CoreWeave (CRWV) stock fell 11.4% on Friday, hitting an intraday low of $71.67, down from the previous close of $81.10.
- Both Jefferies and Citigroup downgraded the stock from buy to hold on Wednesday
- Q1 revenue rose 111.6% year over year to $2.08 billion, but EPS of -$1.40 missed estimates by $0.23
- Insiders have sold more than 17 million shares worth nearly $2 billion in the last 90 days
- The stock still carries a Moderate Buy consensus with an average analyst price target of $136.25
CoreWeave (CRWV) stock fell 11.4% on Friday, trading as low as $71.67 before closing at $71.88. The previous close was $81.10. Trading volume was about 25.2 million shares, slightly below the daily average of 28.2 million shares.
CoreWeave, Inc. Class of common stock, CRWV
The selling came after a pair of analyst downgrades. Both Jefferies and Citigroup lowered their ratings on CRWV from buy to hold on Wednesday. This shift in tone from two major banks added pressure on a stock that was already retreating from its 52-week high of $153.20.
Not everyone has turned cautious. Roth Capital maintained a Buy rating with a price target of $150. Rosenblatt held on to buy and maintained the $250 target. Robert W. Baird initiated coverage with an Outperform rating and a $100 target. Oppenheimer also raised his target from $140 to $150 with an outperformance.
The overall picture from analysts remains mostly positive. Of the 37 analysts tracked by MarketBeat, one rated it Strong Buy, 21 rated it Buy, 14 analysts Hold, and one rated Sell. The average price target sits at $136.25, which is well above where the stock is trading.
Lost profits add to the stress
CoreWeave Earnings were last announced on May 7. First-quarter revenue was $2.08 billion, up 111.6% from the same period last year. This is an eye-catching growth figure, but the end result tells a different story.
EPS came in at -$1.40, beating the consensus estimate of -$1.17 by $0.23. Net margin was -25.57% and return on equity was -43.07%. Analysts currently expect full-year EPS to be -$4.57.
The debt-to-equity ratio for the stock is 3.68. The quick ratio and current ratio are 0.31, indicating limited liquidity in the short term. The 50-day moving average is $97.75 and the 200-day moving average is $95.47, both well above current levels.
Inside sales attract attention
Insider selling has been a recurring headline. CEO Michael Intrator sold 61,797 shares on July 8 at an average price of $86.94, a transaction worth about $5.37 million. This sale was effected pursuant to a previously arranged Section 10b5-1 plan.
Insider Brian Venturo sold 76,912 shares on July 1 at a price of $86.99, for a total of $6.69 million. This represents a 21.31% decrease in his position.
Over the last 90 days, insiders sold a total of 17,070,099 shares worth approximately $1.98 billion. Insiders still own about 24.2% of the company.
On the institutional side, Capula management has increased its size CoreWeave increased by 62% in the first quarter, acquiring an additional 18,679 shares for a total of 48,804 shares worth approximately $3.78 million. Several smaller funds also added new or expanded positions during the same period.
CRWV’s 52-week low is $63.80. With the stock now trading in the low $70s, it is closer to that lower end than the average analyst target of $136.25.
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