CoreWeave and Madrigal's Insider Trades Flash Bullish Signals

Recent insider trading activity is sending powerful signals to investors—one from a red-hot artificial intelligence (AI) infrastructure company and another from a relatively under-the-radar pharmaceutical maker.

While insiders are offloading shares in CoreWeave (NASDAQ: CRWV), a major AI player, they’re buying heavily into Madrigal Pharmaceuticals (NASDAQ: MDGL), a company making waves in biotech. These divergent actions offer meaningful clues about each stock's near-term potential.

CoreWeave: Big Returns, Big Insider Selling

When thinking about top-performing AI stocks in 2025, one name that should immediately come to investors' minds is CoreWeave.

Positioned as a “neo-cloud” company built specifically for AI workloads (vs. traditional cloud providers that are not), CoreWeave is deeply intertwined with  NVIDIA’s (NASDAQ: NVDA), both as a customer and investment partner. In fact, CoreWeave spends billions on most advanced graphics processing units (GPUs).

This relationship has underpinned its rapid growth and investor enthusiasm, and is a key reason why shares have soared approximately 123% year-to-date.

But after such a steep climb, insiders are starting to cash out. In Q3 alone, there has been over $700 million worth of insider selling and no insider buying. With this, investors would rightfully question whether these insiders view the stock as overbought.

And that’s where an interesting distinction lies: around $370 million of those sales were made under 10b5-1 trading plans, which are pre-scheduled and don’t necessarily indicate insiders' sentiment.

Still, around $350 million worth of CoreWeave’s Q3 insider sales did not come under 10b5-1 plans. These sales were very likely discretionary; insiders had control over when and how much they sold. They provide significantly greater levels of insight because of this. At first glance, these sales look like a solidly bearish signal.

Interestingly, CoreWeave stock currently trades around $93, roughly 12% below the average insider exit price. This may imply a margin of safety for new investors. However, if insiders are signaling that $100–$101 is a ceiling, it could also suggest limited near-term upside.

Still, price target data from Wall Street analysts push back on this notion. The MarketBeat consensus price target on CRWV is around $107.

Some bulls, like Argus, see it going as high as $200, while others like Moffett Nathanson have a more bearish $65 target, showing the wild divergence in analyst sentiment when it comes to this stock. 

Madrigal: Shares Take Off After Insider Buys and EU Approval

While insiders at CoreWeave are selling, they have been aggressively buying shares of healthcare stock Madrigal Pharmaceuticals.

MarketBeat has tracked around $62 million worth of insider purchases in Q3—all of which came from hedge fund Baker Bros. Advisors LP between Aug. 18 and Aug. 20. The average weighted price of the purchased shares was around $374. The stock has since climbed to around $454, representing an almost 20% gain for Baker Bros. in just a few weeks.

Interestingly, Madrigal also saw around $109 million of insider selling during the same quarter, almost all of which came through 10b5-1 plans. Similar to CoreWeave, these sales do not necessarily indicate a bearish sentiment, and Baker Bros.' intentional purchases hold more weight as a moderately bullish signal.

Notably, in late August, Madrigal received regulatory conditional approval in the European Union for its drug Rezdiffra, the first and only approved treatment for metabolic dysfunction-associated steatohepatitis (MASH) in the European Union. This opens the company to a brand-new market from which it can start generating sales over the coming quarters.

After receiving approval in the United States, Rezdiffra’s sales experienced massive growth, climbing from around $15 million in Q2 2024 to $213 million in Q2 2025.

Madrigal believes that there are approximately 370,000 diagnosed patients in Europe who could benefit from Rezdiffra, so it is possible that European sales will also see huge growth, another bullish signal for shares.

Analyst sentiment reflects this optimism. According to MarketBeat, the consensus price target for MDGL sits around $471, with several analysts citing the E.U. approval and U.S. sales ramp as catalysts for continued upside. 

With strong institutional backing from firms like Vanguard, Paulson, and BlackRock, Madrigal appears well-positioned for further gains.

CRWV and MDGL Garner Positive Insider Indicators

Insider trading isn’t a crystal ball, but when aligned with business fundamentals, it can offer meaningful insight. Overall, these insider trades at CoreWeave and Madrigal provide interesting bullish signals to investors. 

CoreWeave insiders appear to be locking in gains after a massive run-up. While some of the selling is routine, the discretionary sales hint that insiders believe the stock may be fully valued for now. That said, long-term growth prospects tied to AI infrastructure remain strong.

Madrigal insiders, specifically Baker Bros., seem to be placing a bold bet on continued upside. Their confidence aligns with new E.U. regulatory approval and explosive sales growth for Rezdiffra, giving investors a compelling narrative for further gains.

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The article "CoreWeave and Madrigal's Insider Trades Flash Bullish Signals" first appeared on MarketBeat.