Karen Boone, a director at CoreWeave (CRWV), recently bought 10,520 shares. The buy increased her stake by a massive 609%, and came to a total cost of $500,336.
This is the first insider buy since last November, when another director bought 423,020 shares for just under $20 million. Otherwise, company insiders have been big sellers of shares around current prices, including a sales from both the company CEO and Chief Strategy Officer for more than half their holdings.
Overall, CoreWeave insiders own 30.1% of shares.
The AI cloud services platform went public just last month. Since then, shares are up nearly 60%. While still in the early stages and not yet profitable, revenues have soared a massive 544% over the last 12 months.
CoreWeave has also issued some debt, allowing it to fuel growth without excessive share dilution. CoreWeave’s data optimization tools and machine-learning developers could allow them to build out a profitable software niche in the AI-driven space.
Action to take: Even with a limited trading history, CoreWeave has been trending higher since its IPO. Momentum investors may like shares here. And growth investors may want to buy a small stake here, and use any market pullback to add to that position.
For traders, the August $80 calls, last trading for about $7.45, could deliver mid-double-digit returns in the months ahead if the current momentum in shares continues.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.