Magnetar Financial LLC, a majority shareholder (more than 10% owner) of CoreWeave (CRWV), sold common stock worth approximately $94.44 million last week. This marks the firm’s fourth consecutive sale of CRWV stock since the lock-up period expired. CoreWeave is a cloud infrastructure company offering services that enable high-performance computing (HPC) in the artificial intelligence and blockchain space.
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Should Retail Investors Sell CRWV Stock?
Interestingly, many of CoreWeave’s IPO (initial public offering) investors have sold more than $1 billion worth of shares since mid-August. This has raised serious concerns among retail investors about whether they should also sell CoreWeave stock. The company had a blockbuster IPO in March 2025, with its shares surging nearly 178% year-to-date. Considering its business potential, CRWV is a high-growth but risky stock, and investors should consider their risk-reward profile before investing.
Insider share sales usually indicate caution about a company’s future but can also happen for personal reasons. Hence, it is important to watch these trades for clues on the company’s growth expectations.
A Closer Look at the Insider’s Transactions
According to a Form 4 filing with the SEC on August 29, Magnetar Financial sold 915,339 CRWV shares on August 28 for about $94.44 million. These shares were sold in multiple tranches at weighted average prices ranging between $103.15 and $103.18 apiece.
Similarly, Magnetar had sold shares worth $2.04 million on August 22 and another $147 million on August 15 and 18. Despite these significant sales, Magnetar Financial still indirectly holds CoreWeave stock worth about $575.69 million, based on the closing price of $103.04 on August 29.
Currently, CRWV stock has a Negative Insider Confidence Signal on TipRanks, based on Informative Sell transactions exceeding $1 billion, undertaken in the last three months.
Is CRWV Stock a Buy, Hold, or Sell?
Analysts are turning cautious on CoreWeave after weak Q2FY25 results, with losses widening to $1.2 billion on higher expenses. The company also faces investor resistance to its planned $9 billion takeover of Core Scientific (CORZ) unless improved terms are offered.
On TipRanks, CRWV stock has a Moderate Buy consensus rating based on nine Buys, 12 Holds, and two Sell ratings. The average CoreWeave price target of $123.45 implies 19.8% upside potential from current levels.
