Is CoreWeave stock a buy despite insider selling? – Magic Post

CoreWeave (NASDAQ: CRWV) insiders are selling shares, but investors should think twice before closing positions or selling. While there are concerns, the demand is on AI-driven data center computing NVIDIA’s (NASDAQ: NVDA: NVDA) GPU-as-a-Service capabilities are enormous, fueling strong growth and profitability expectations.

Consensus numbers through late October suggest this company’s revenue will grow at a double-digit CAGR over at least the next five years, with profitability reached by late 2026 and early 2027 and earnings growing strongly after that.

In this scenario, CoreWeave is trading at lower levels compared to potentially lower forward estimates. The company’s growth trajectory is supported by price action, offering 100% upside potential over the next few years and an expected upgrade cycle for analysts.

Trends in late 2025 are consistent with a rising stock price, including rapidly increasing coverage, strengthening sentiment with the consensus associated with Moderate Buy, and a high price target. The consensus lags behind the price action of late October but provides support for the market as it heads up 50% in the previous 90 days. The upper band indicates $200, a new all-time high and a roughly 50% share price increase when reached.

Likewise, institutional activity also corresponds to Expectations of rising stock prices. The group bought aggressively in the third quarter at a rate of over $2 for every $1 sold and carried an uptrend into the fourth quarter. The balance of activity in the first few weeks of the quarter amounts to approximately $250 million purchased, compared to less than $3 million sold, bringing the group’s total exposure to approximately 50%, excluding major shareholders and insiders.

CoreWeave insiders are selling shares as the lockup expires

CoreWeave insiders, including the CEO, CFO, CSO, CDO, GC, SVP, founders, and directors, have been selling shares since March. In fact, insiders have only sold shares since the IPO; No buying, but investors shouldn’t read too much news. Most sales are in line with pre-made trading plans aimed at taking advantage of the expiring lockdown period, and Magnetar Financial, LLC It represents the bulk of those sales.

Magnetar Financial is an early investor in this space. It is a multi-strategy alternative asset manager that first gained exposure by providing a loan which later evolved into Significant equity position. With shares trading at 350% above their IPO price, it was wise to take some profits off the table.

The important takeaway is that insiders still own a significant 25% of the business and provide a strong support base. The risk is that insider selling will continue in the coming quarters, which will keep volatility high.

Short interest poses a risk to CoreWeave investors

CoreWeave’s short interest poses a near-term threat to its investors. Short interest has been growing steadily over the past two months, reaching a record high of more than 10% in early October. 10% is not insurmountable, but it may continue to trend upward, and the threat of insider selling increases the risk.

The bottom line is that CoreWeave’s volatility is likely to remain high for the foreseeable future, and there is potential for significant stock price corrections until shorts exit the market. Critical support levels are near $130, $120, and $100.

The price action reflects volatility caused by insider and short selling, with the stock price correcting more than 50% from its peak and, according to analysts, a strong rebound in October.

The next visible catalyst is the third-quarter earnings release, scheduled for mid-November, where analysts expect high-single-digit sequential growth but set the bar lower with bearish revisions.

The likely outcome, assuming CoreWeave achieves results similar to those of other AI-focused companies, is significant outperformance and positive trend.

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expertise

Thomas Hughes has been a contributing writer for InsiderTrades.com since 2019.

• Professional background: Thomas Hughes is managing partner of Passive Market Intelligence LLC, a market research platform he launched in 2023 with a mission: “We monitor the market so you don’t have to.” He has worked as a blogger, stock market commentator, and independent analyst since 2010 and has been actively involved in trading and investing since 2005.
• credentials: He holds an Associate of Arts degree in Culinary Technology – training that has honed his discipline, attention to detail, and ability to anticipate results, all of which are reflected in his work as a market analyst.
• Financial experience: Thomas has been writing about finance and investing since 2011, when he discovered it could be more than just a personal passion – it could be a career. He has been a contributing writer for InsiderTrades.com since 2019.
• Focus on writing: He specializes in the S&P 500, small-cap stocks, dividend and high-yield strategies, consumer staples, retail, technology, oil, and cryptocurrencies. His analysis blends chart-based technical setups with key fundamental insights, helping readers identify actionable trends.
• Investment approach: Thomas takes a hybrid approach that combines technical analysis with deep fundamental research. He often writes about macroeconomic shifts, earnings trends, and sentiment-based trading signals.
• inspiration: Thomas first became interested in stocks after attending a seminar on how to buy and sell your own stocks. This event opened his eyes to the potential of the market and sparked a lifelong interest in investing.
• Fun fact: Thomas started working on model railways by accident a few years ago, and now he can’t stop running the rails.
• Areas of expertise: Technical and fundamental analysis, S&P 500, retail and consumer sectors, dividends, market trends

education

Associate of Arts in Culinary Technology