CoreWeave, which went public in late March, has seen its initial public offering (IPO) lockup period expiring after the close of trading on Aug. 14.
CoreWeave, Inc. (CRWV) stock is down nearly 40% from its recent (Aug. 12) intraday high ($148.80), pushing the shares deeper into bearish territory. Signaling a potential rebound, the stock rose in Wednesday’s extended session after Jane Street Group upped its stake in the company.
The recent stock setback came after the data center infrastructure company’s quarterly results, as investors stayed wary about an imminent initial public offering (IPO) lockup expiration. CoreWeave, which went public in late March, has seen its initial public offering (IPO) lockup period expiring after the close of trading on Aug. 14.
Nevertheless, the Livingston, New Jersey-based company’s fundamentals remain solid, as it reported solid second-quarter revenue growth and issued an upbeat outlook.
The sell-off was also in part due to the recent across-the-board tech sell-off, with investors turning jittery about a potential artificial intelligence (AI) bubble burst.
In a slew of filings with the SEC late Wednesday, CoreWeave disclosed a stake purchase by institutional investor Jane Street and plans to sell stock by insiders.
A 13G filing showed Jane Street held nearly 20 million shares in CoreWeave, giving the institution a 5.4% stake. With the stake build, Jane Street is now the fourth biggest shareholder in the company. It previously had a 1.36% interest in the company.
As opposed to a 13D filing, a 13G filing shows Jane Street is interested in only a passive investment position in CoreWeave.
Separately, the company filed multiple 144 statements, which revealed intentions of share sale by insiders, including its CFO Nitin Agrawal and General Counsel Kristen McVeety. West Clay Capital LLC, Yolo APV Trust and Yolo ECV Trust, all 10% owners of the stock, are also set to divest stakes.
A Form 144 is filed with the SEC when company insiders plan to sell restricted or control securities.
CoreWeave stock fell 1.47% on Wednesday after the company’s largest shareholder, Magnetar Financial, took profits on the stock runup, according to regulatory filings done on Tuesday. Magnetar has sold about $147 million worth of CoreWeave shares over Friday and Monday.
On Stocktwits, retail sentiment toward CoreWeave stock stayed ‘extremely bullish’ (81/100) by early Thursday and the message volume was also at ‘extremely high’ levels.
A bullish user said they got back into the stock and hoped that the stock had hit bottom.
Another said they were buying the dip.
Since its late March listing, CoreWeave stock has gained nearly 130%, although it trades down over 50% from its June 20 all-time high of $187.
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