Shares of CoreWeave (CRWV) climbed over 3% on Thursday after quantitative trading firm Jane Street disclosed a 5.4% stake in the AI cloud infrastructure company. According to a 13F filing, Jane Street now holds 19.99 million shares. This stake was valued at about $2.35 billion at the time of the filing and nearly $1.8 billion as of Wednesday’s closing price.
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The move positions Jane Street as the company’s fourth-largest shareholder. The top three shareholders are Magnetar Financial (25%), FMR (6.75%), and Nvidia (6.55%).
This new investment comes after a turbulent period for CRWV stock. The company went public in late March with an IPO price of $40 and saw its share price soar to a high of $183 by late June. However, shares have since cooled down, particularly after the company’s IPO lock-up period expired on Thursday, August 14.
The expiration of the lock-up freed up 84% of the company’s shares for trading, leading to a wave of selling. Major investment banks, including Morgan Stanley (MS), JPMorgan Chase (JPM), and Goldman Sachs (GS), handled over $1 billion in block trades as early investors and insiders rushed to sell their stock.
What’s Ahead for CoreWeave Stock?
Jane Street’s entry is seen as a vote of confidence in CoreWeave’s long-term potential, especially as the company continues to expand its footprint in AI infrastructure.
At the same time, CRWV stock is witnessing analyst confidence. Recently, H.C. Wainwright analyst Kevin Dede upgraded CoreWeave’s rating to Buy from Hold. However, he lowered the price target to $180 from $212, citing the recent decline. The Top analyst believes the stock is now undervalued and sees strong growth potential.
Another analyst, Andrew Beale from Arete Research, upgraded CoreWeave stock to Buy from Hold with a $180 price target.
Looking ahead, investors will be focused on CoreWeave’s new client wins, product rollouts, and upcoming quarterly results to assess if its recent growth is sustainable.
Is CRWV a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on CRWV stock based on eight Buys, 14 Holds, and two Sells assigned in the past three months. Further, the average CoreWeave stock price target of $120.73 per share implies 30.66% upside potential.
