CoreWeave Inc., an artificial-intelligence cloud company, is set to break free from lockup restrictions that have limited its corporate insiders’ ability to sell shares since its IPO in March. The company’s post-IPO lock-up period is about to expire, allowing insiders to unload their shares and potentially leading to selling pressure. However, this could also reduce volatility in the stock as more shares become available for public trading.
CoreWeave’s stock has surged nearly 200% since its IPO, benefiting early investors and corporate insiders who secured low-priced shares. With the lockup period set to expire after Thursday’s market close, insiders will soon be free to cash in on their paper gains, which could lead to a significant shift in the company’s stock dynamics.
Source: https://www.marketwatch.com/story/coreweaves-lockup-is-about-to-expire-what-that-could-mean-for-the-stock-1228f44b