TLDR
- Magnetar Financial LLC sold $248.36 million worth of CoreWeave stock across three trading sessions in early October, marking the firm’s tenth consecutive sale since the IPO lock-up expired.
- The sales included 1,782,904 shares sold at weighted average prices between $137.63 and $139.37 per share on October 3, 6, and 7.
- Evercore ISI maintained its Outperform rating with a $175 price target, citing CoreWeave’s multi-year take-or-pay contracts averaging four years and prepayments of 15-25% of contract value.
- CoreWeave stock has surged 248% since its March 2025 IPO but carries a Very Negative Insider Confidence Signal on TipRanks due to over $2.2 billion in informative sell transactions over three months.
- Analysts show a Moderate Buy consensus with 15 Buy, 11 Hold, and 2 Sell ratings, with an average price target of $154.42 implying nearly 20% upside.
Magnetar Financial LLC just offloaded another massive chunk of CoreWeave stock. The majority shareholder sold $248.36 million worth of shares over three trading days in early October.
This marks the tenth straight sale from Magnetar since the IPO lock-up period ended. The firm sold shares on October 3, 6, and 7 through various funds including Magnetar Capital Partners LP and Supernova Management LLC.
The sales totaled 1,782,904 shares. Prices ranged from $137.63 to $139.37 per share across the three transactions.
CoreWeave has seen relentless insider selling since mid-August. IPO investors have dumped billions worth of shares since restrictions lifted.
The stock currently carries a Very Negative Insider Confidence Signal on TipRanks. Informative sell transactions have exceeded $2.2 billion in the past three months alone.
But here’s the twist. While insiders head for the exits, Wall Street analysts remain optimistic about the GPU cloud provider.
Evercore ISI reiterated its Outperform rating on October 8. The firm set a price target of $175, well above current trading levels.
Contract Structure Provides Revenue Stability
Evercore points to CoreWeave’s unique business model as a key differentiator. The company relies on multi-year take-or-pay contracts that customers cannot cancel.
These contracts average four years in length. More recent deals are trending toward five years or longer.
CoreWeave only builds capacity after securing customer contracts. Customers provide prepayments of 15-25% of total contract value upfront to fund initial capital expenses.
About 98% of CoreWeave’s revenue comes from reserved capacity. This provides predictable cash flow and reduces exposure to spot market volatility.
The company also has a master service agreement with NVIDIA running through April 2032. Under this deal, NVIDIA must purchase any unsold GPU capacity from CoreWeave.
Financial Projections Show Strong Margins Ahead
Evercore ran the numbers on a hypothetical contract scenario. A $3.2 billion deal over four years could generate 40-50% incremental EBIT margins once deployed.
The same contract could produce roughly 70% incremental EBITDA margins. Current mid-teens margins reflect heavy investment spending to support rapid growth.
Revenue timing and lower scale also factor into today’s margin profile. Management expects profitability to improve as the business matures.
The stock has already delivered massive returns. Shares have jumped 248% since the March 2025 IPO.
Year-to-date performance shows a 222% gain. Market capitalization stands at $66.8 billion as of the latest data.
The analyst community shows mixed but generally positive sentiment. TipRanks data reveals a Moderate Buy consensus rating based on 28 analyst opinions.
Fifteen analysts rate the stock a Buy. Eleven have Hold ratings and two recommend selling.
The average price target sits at $154.42. That implies roughly 20% upside from current levels around $128.83.
CoreWeave recently announced plans to acquire Monolith AI Limited. The deal aims to integrate machine learning capabilities for industrial and manufacturing clients.
The company also disclosed that a $1.2 billion put right tied to Series C convertible preferred stock has terminated after hitting a stock price milestone.
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