TLDR
- CoreWeave stock climbed to $102, up nearly 11%, driven by a new cloud deal with Anthropic and a $21B expansion with Meta
- COO Sachin Jain sold 3,953 shares at $92 on April 8, totaling $363,676, under a pre-arranged Rule 10b5-1 plan
- Insider Brian Venturo also sold 61,747 shares at $89.22 for $5.51M, reducing his stake by 21.64%
- Revenue surged 110.4% to $1.57B, but EPS missed consensus and the company remains unprofitable
- CoreWeave priced a $3.5B convertible note offering and $1.75B in 9.75% senior notes, raising leverage concerns
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CoreWeave (CRWV) hit $102 on April 11, up nearly 11% from the $92 price at which its COO sold just days earlier. Trading volume hit 83.2 million shares — well above its average of 22.6 million.
CoreWeave, Inc. Class A Common Stock, CRWV
The jump was fueled by two major contract wins. CoreWeave signed a multiyear cloud infrastructure deal with Anthropic to power the Claude family of AI models. Compute resources from that agreement are expected to come online later this year.
The company also expanded its existing deal with Meta by $21 billion, bringing total Meta commitments to $35.2 billion through 2032. Meta now accounts for roughly 40% of CoreWeave’s pro-forma backlog, which stands at approximately $87.8 billion.
Cantor Fitzgerald started coverage this week with an Overweight rating and a $149 price target, citing the Anthropic deal as an immediate catalyst. Evercore ISI reiterated its Outperform rating with a $120 target following the same news.
Not all analysts are convinced. Sanford C. Bernstein has an Underperform rating with a $56 target. Stifel holds a price target of $110 with a Hold rating. Out of 32 analysts, 19 rate it Buy, 11 Hold, and 2 Sell — with an average target of $121.65.
Insider Selling Raises Eyebrows
While the stock surged, two executives were selling. COO Sachin Jain sold 3,953 shares on April 8 at $92, netting $363,676. That same day, insider Brian Venturo sold 61,747 shares at an average of $89.22, collecting $5.51 million and cutting his stake by 21.64%.
Both sales were executed under pre-arranged Rule 10b5-1 plans, which are set up in advance to avoid accusations of trading on inside information. Jain still holds 122,691 shares directly. Venturo retains 223,580 shares valued at around $19.9 million.
The selling has drawn attention given the size of the transactions, even if the timing was pre-planned.
Heavy Debt Load Adds Risk
CoreWeave recently priced a $3.5 billion convertible senior note offering, upsized from an initial $3 billion. It also issued $1.75 billion in 9.75% senior notes due 2031, upsized from $1.25 billion. That’s a high coupon rate and adds meaningful interest expense to an already unprofitable business.
The company’s debt-to-equity ratio stands at 4.46. Its quick ratio and current ratio are both 0.46, pointing to tight short-term liquidity.
In Q4, CoreWeave posted revenue of $1.57 billion — up 110.4% year-over-year. But it reported EPS of -$0.89, missing the consensus estimate of -$0.61 by $0.28. Net margin came in at -22.75%.
The stock’s 52-week range runs from $33.51 to $187.00. Its 50-day moving average is $85.40, and the 200-day sits at $94.92.
Institutional interest continues to grow, with several funds adding or initiating positions in recent quarters. ARK Invest has also been cited as a buyer.
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