CoreWeave (CRWV) Stock Jumps on Nvidia-Backed Poolside Deal While Insiders Dump Shares

TLDR

• CoreWeave stock climbed 1.8% on Thursday with trading volume jumping 55% above average to 35.8 million shares.
• The company announced a strategic partnership with Nvidia-backed Poolside to build a large AI data center.
• Wall Street analysts maintain a “Moderate Buy” rating with an average price target of $127.64, though estimates range from $32 to $165.
• Director Jack D. Cogen sold over 1.1 million shares in September, part of $3.46 billion in total insider sales over the past 90 days.
• CoreWeave reported Q2 revenue of $1.21 million, up 206.7% year-over-year, but missed EPS estimates posting a loss of $0.27 per share versus expected $0.20 loss.

CoreWeave shares moved higher on Thursday following news of a partnership with Poolside, an AI coding startup backed by Nvidia. The stock closed up 1.8% at $141.74.

CoreWeave, Inc. Class A Common Stock, CRWV

The trading session saw heavy activity. Approximately 35.8 million shares changed hands, representing a 55% increase over the stock’s average daily volume of 23.2 million shares.

The partnership with Poolside centers on building a large AI data center. This deal is expected to expand CoreWeave’s order backlog and increase its data center capacity.

The stock has been on a tear this year. CoreWeave is up 248.1% year-to-date, though it’s been a bumpy ride getting there.

Trading earlier in the day pushed the stock as high as $150.40 before settling lower by the closing bell. The previous close was $139.24.

Analyst Views Remain Mixed

Wall Street remains divided on CoreWeave’s prospects. The consensus rating sits at “Moderate Buy” with an average price target of $127.64.

That target actually sits below the current trading price. The range of estimates is wide, from a low of $32 from HSBC to a high of $165 from Melius.

Melius upgraded CoreWeave from hold to buy in late September. Citigroup made a similar move in July, raising its rating from neutral to buy with a $160 price target.

Barclays increased its target from $100 to $140 in July but maintained an equal weight rating. Two analysts rate the stock a strong buy, sixteen have buy ratings, eleven suggest holding, and three recommend selling.

Insider Selling Raises Questions

Recent insider activity tells a different story. Director Jack D. Cogen sold 1,112,004 shares on September 2nd at an average price of $94.69.

The transaction was worth $105.3 million. Following the sale, Cogen still held 12,329,676 shares valued at approximately $1.17 billion.

The sale represented an 8.27% decrease in his position. He wasn’t alone in selling.

Major shareholder Magnetar Financial sold 1,451,063 shares on September 19th at $125.60 per share. That transaction totaled $182.3 million and represented a 79.96% decrease in their holdings.

Over the past 90 days, insiders have sold 28,611,578 shares worth a combined $3.46 billion. That’s a lot of stock hitting the market from people with inside information.

The company’s recent earnings were mixed. CoreWeave reported Q2 revenue of $1.21 million, up 206.7% compared to the same period last year.

However, the company posted a loss of $0.27 per share. Analysts had expected a loss of $0.20 per share, meaning CoreWeave missed estimates by $0.07.

The stock’s technical indicators show momentum. The 50-day moving average sits at $116.53, while the 200-day moving average is $106.93.

CoreWeave’s current market cap stands at $69.38 billion. The company carries a debt-to-equity ratio of 2.79 with both quick and current ratios at 0.52.

The Poolside partnership announcement comes as CoreWeave looks to expand its AI infrastructure business. The company provides cloud services tailored for AI workloads.

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