TLDR
- Jane Street disclosed a 5.4% stake in CoreWeave with 19.99 million shares, sparking a 2% stock jump
- H.C. Wainwright analyst Kevin Dede upgraded CoreWeave from Neutral to Buy with $180 price target
- CoreWeave raised FY25 revenue guidance to $5.25 billion, up 5% from previous $5.0 billion forecast
- Stock has faced pressure after IPO lock-up expired on August 14, freeing 84% of outstanding shares
- Company reported 207% Q2 revenue growth but posted larger-than-expected losses
CoreWeave shares climbed 2% in early Thursday trading as fresh institutional backing emerged. Jane Street disclosed a 5.4% stake in the cloud infrastructure company through an SEC filing.
The quantitative trading firm purchased 19.99 million shares. This puts Jane Street among CoreWeave’s largest institutional holders.
Only Magnetar Financial, FMR and Nvidia hold larger positions in the company. CoreWeave went public at $40 per share on March 28.
The stock surged to around $183 in late June before retreating. Second-quarter earnings results contributed to the pullback in recent weeks.
Analyst Sees Value After Stock Decline
H.C. Wainwright analyst Kevin Dede upgraded CoreWeave from Neutral to Buy on Thursday. He set a price target of $180 for the stock.
Dede pointed to the company’s raised revenue guidance as a key factor. CoreWeave increased its fiscal 2025 revenue midpoint to $5.25 billion.
This represents a 5% increase from the previous forecast of $5.0 billion. The analyst believes the recent stock decline doesn’t reflect the company’s true value.
CoreWeave reported 207% revenue growth in the second quarter. However, the company posted larger losses than analysts expected.
Dede highlighted CoreWeave’s partnership with Nvidia as a competitive advantage. The company was first to deploy Nvidia’s latest two generations of AI chips.
Lock-Up Expiration Creates Trading Pressure
The IPO lock-up period expired on August 14. This freed roughly 84% of CoreWeave’s outstanding shares for trading.
The unlock triggered more than $1 billion in block trades. Morgan Stanley, JPMorgan Chase and Goldman Sachs arranged these transactions.
The combination of increased share supply and portfolio rebalancing explains recent volatility. Trading pressure may continue until supply and demand reach equilibrium.
Jane Street’s investment signals renewed institutional confidence in the stock. However, the larger tradable float could keep pressure on shares near-term.
Wall Street analysts maintain a Hold consensus rating on CoreWeave. The average price target of $116.45 suggests 27% upside potential.
Fourteen analysts rate the stock a Hold. Five recommend buying while one suggests selling.
Recent research from SemiAnalysis confirmed CoreWeave’s platform strength. The report highlighted the company’s leading position in AI infrastructure adoption.
Dede believes the stock trades at attractive valuation levels relative to sales and earnings. He sees room for shares to rise as the company executes its growth strategy.
Investors will monitor upcoming client announcements and product deployments. Quarterly results will also provide insight into CoreWeave’s business momentum.
The company operates in the competitive cloud infrastructure space. It focuses on AI workloads and high-performance computing applications.
CoreWeave’s current trading reflects ongoing adjustment to the expanded share float. The Jane Street stake disclosure came as shares traded around $91.
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