TLDR
- CoreWeave stock jumped from $93.55 to open at $99.89, trading 15.96 million shares
- Analysts maintain “Hold” rating with $107.45 average target, though Argus sets $200 target
- Q2 revenue surged 206.7% year-over-year but company missed EPS estimates by $0.07
- Insiders sold over 7.4 million shares worth $722 million in past 90 days
- Major institutions including Cisco invested $173.5 million in Q2
CoreWeave opened Tuesday trading at $99.89, up from Monday’s close of $93.55. The AI infrastructure company saw heavy volume with nearly 16 million shares changing hands.
The gap-up move comes despite mixed analyst sentiment on the stock. Wall Street firms maintain varied views on CoreWeave’s prospects heading into fall.
Northland Securities raised their price target from $85 to $165 in July. Morgan Stanley increased their target from $58 to $91 but kept an “equal weight” rating.
The most bullish call comes from Argus, which maintains a “buy” rating with a $200 price target. This represents the highest target among covering analysts.
Overall, analysts show cautious optimism. Two firms rate the stock a “Strong Buy” while eight give it a “Buy” rating.
Fifteen analysts assign “Hold” ratings, with two issuing “Sell” recommendations. The average target price sits at $107.45.
Earnings Miss Overshadowed by Revenue Growth
CoreWeave reported Q2 results on August 12th that painted a mixed picture. The company posted an earnings per share loss of $0.27, missing the consensus estimate of $0.20.
Revenue told a different story entirely. The company generated $1.21 million in quarterly revenue, marking a 206.7% increase from the same period last year.
This revenue growth reflects CoreWeave’s position in the rapidly expanding AI infrastructure market. The company provides cloud computing services optimized for machine learning workloads.
Heavy Insider Selling Activity
Recent insider activity shows executives taking profits from the stock’s gains. Brannin Mcbee sold 375,000 shares on August 19th at an average price of $91.71.
Brian M. Venturo followed with a sale of 324,312 shares on August 20th at $88.10 per share. These transactions generated proceeds of $34.4 million and $28.6 million respectively.
Total insider sales reached 7.47 million shares over the past 90 days. The combined value of these sales topped $722 million.
Such large-scale insider selling often raises questions about management’s confidence in near-term prospects. However, it could also represent normal portfolio diversification after the company’s public debut.
Institutional Interest Grows
Despite insider selling, institutional investors continue adding positions. Cisco Systems purchased a new stake worth $173.5 million during Q2.
Geode Capital Management increased their holdings by 142.6% during the quarter. The firm now owns 716,178 shares valued at $116.8 million.
Several other institutions initiated positions in Q2. Lmdagg L.L.C. acquired shares worth $48 million while Sivia Capital Partners bought $39.8 million worth.
Sumitomo Mitsui Trust Group also entered with a $34.3 million position. This institutional buying suggests confidence in CoreWeave’s long-term growth trajectory.
The company currently trades with a debt-to-equity ratio of 2.79. Its quick ratio and current ratio both stand at 0.52.
CoreWeave’s 50-day moving average sits at $117.75, well above current trading levels. The stock closed Tuesday’s session at $99.77.
