The stock of CoreWeave (CRWV) is down 10% on reports that insiders are dumping their shares in the artificial intelligence (AI) company.
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Regulatory filings with the U.S. Securities and Exchange Commission (SEC) show that CoreWeave CEO Michael Intrator recently sold 82,455 shares worth $7.8 million. At the same time, Corporate Secretary Kristen McVeety sold her entire stake in CoreWeave valued at nearly $30 million.
CoreWeave’s largest outside shareholder is also selling stock. Magnetar Financial sold 915,339 shares of CRWV stock worth $94 million. The biggest shareholder also implemented a protective “collar” trade strategy, selling call options and buying put options to hedge its remaining position in the high-flying AI cloud computing company.
Lock-Up Expiry
The heavy selling of CRWV stock comes after the 90-day post-IPO lock-up period expires. The selling also comes amid broader weakness in technology stocks, which are plunging to start September, historically the worst month of the year for equities.
CoreWeave went public at the end of March this year, and since then its share price has been volatile. The stock has been cut in half since soaring to $187 a share on June 20. However, CRWV stock is still up 131% since its market debut in March.
Is CRWV Stock a Buy?
The stock of CoreWeave has a consensus Moderate Buy rating among 23 Wall Street analysts. That rating is based on nine Buy, 12 Hold, and two Sell recommendations issued in the last three months. The average CRWV price target of $123.45 implies 33.68% upside from current levels.
