Magnetar Financial LLC, a majority shareholder (more than 10% owner) of CoreWeave (CRWV), sold common stock worth approximately $147.08 million on August 15 and August 18. Interestingly, a large number of CoreWeave’s IPO (initial public offering) investors are selling its shares as the lock-up period expired.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The surge in trading activity occurred because about 84% of CoreWeave’s Class A shares became available for trading for the first time since its IPO in March 2025. Last week, company insiders of the artificial intelligence (AI) cloud computing company sold over $1 billion worth of shares.
A corporate insider’s share sale usually signals caution about the company’s future potential. However, an insider might sell shares for other reasons, such as financial or personal obligations. It is important to keep an eye on the Informative trades of corporate insiders, as they may provide insight into expectations for the company’s growth.
A Closer Look at the Insider’s Transactions
According to two Form 4 filings with the SEC on August 19, Magnetar Financial sold 915,382 shares on August 15 for about $91.68 million, followed by another 549,682 shares on August 18 valued at $55.40 million.
These shares were sold in multiple tranches at weighted average prices ranging between $100.15 and $100.78 apiece. Despite these significant sales, Magnetar Financial still holds CoreWeave stock worth about $541 million, based on the closing price of $92.89 on August 19.
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 CoreWeave Stock a Good Buy?
Analysts have grown increasingly cautious about CoreWeave’s long-term outlook. The company recently reported disappointing Q2FY25 results, with losses widening to $1.2 billion amid rising operating expenses. Furthermore, CoreWeave is facing investor pushback over its proposed $9 billion acquisition of Core Scientific (CORZ), unless more favorable terms are offered.
On TipRanks, CRWV stock has a Hold consensus rating based on five Buys, 14 Holds, and one Sell rating. The average CoreWeave price target of $116.45 implies 25.4% upside potential from current levels. Meanwhile, CRWV stock has already surged over 150% since its IPO.
