Coastal Financial (NASDAQ:CCB) Stock Rating Raised to Hold at Zacks Research

Key Points

• Zacks Research upgraded Coastal Financial from “strong sell” to “hold.” Analyst views remain mixed, though MarketBeat’s consensus rating is “Moderate Buy” with an average price target of $91.83.
• Coastal Financial missed quarterly expectations, reporting EPS of $0.89 versus a $0.96 consensus and revenue of $149.33 million versus estimates of $158.85 million.
• The company faces a securities class action alleging misstatements about credit quality and risk controls in its CCBX banking-as-a-service business. The allegations follow a reported $68.8 million credit expense tied to a partner; the claims are not findings of wrongdoing.

Coastal Financial (NASDAQ:CCB - Get Free Report) was upgraded by Zacks Research from a "strong sell" rating to a "hold" rating in a report issued on Tuesday, Zacks reports.

A number of other research firms also recently weighed in on CCB. Keefe, Bruyette & Woods cut their target price on Coastal Financial from $95.00 to $53.00 and set an "outperform" rating for the company in a research report on Friday, July 31st. Weiss Ratings cut Coastal Financial from a "hold (c)" rating to a "sell (d)" rating in a research report on Tuesday, August 11th. Raymond James Financial cut Coastal Financial from a "strong-buy" rating to an "outperform" rating and set a $50.00 price target on the stock. in a research report on Friday, July 31st. Finally, TD Cowen boosted their price target on Coastal Financial from $47.00 to $50.00 and gave the company a "buy" rating in a research note on Friday, October 30th. Five research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $91.83.

Coastal Financial Trading Up 3.8%

Shares of CCB stock opened at $44.55 on Tuesday. The company has a current ratio of 1.05, a quick ratio of 1.03 and a debt-to-equity ratio of 0.10. The stock has a market cap of $681.25 million, a P/E ratio of -165.01 and a beta of 0.78. The stock has a 50 day simple moving average of $44.39 and a 200 day simple moving average of $67.58. Coastal Financial has a 1 year low of $35.56 and a 1 year high of $120.05.

Coastal Financial (NASDAQ:CCB - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The company reported $0.89 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.96 by ($0.07). Coastal Financial had a negative return on equity of 0.75% and a negative net margin of 0.50%. The company had revenue of $149.33 million for the quarter, compared to analyst estimates of $158.85 million. On average, research analysts predict that Coastal Financial will post 0.72 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Coastal Financial

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Cooper Creek Partners Management LLC grew its position in Coastal Financial by 105.0% in the first quarter. Cooper Creek Partners Management LLC now owns 450,134 shares of the company's stock valued at $34,255,000 after acquiring an additional 230,537 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in Coastal Financial by 7.6% during the first quarter. Dimensional Fund Advisors LP now owns 359,571 shares of the company's stock worth $27,361,000 after acquiring an additional 25,424 shares in the last quarter. The Manufacturers Life Insurance Company lifted its holdings in shares of Coastal Financial by 1.4% in the first quarter. The Manufacturers Life Insurance Company now owns 337,819 shares of the company's stock worth $25,708,000 after acquiring an additional 4,611 shares during the last quarter. Emerald Advisers LLC lifted its holdings in shares of Coastal Financial by 44.8% in the first quarter. Emerald Advisers LLC now owns 221,182 shares of the company's stock worth $16,832,000 after acquiring an additional 68,427 shares during the last quarter. Finally, Emerald Mutual Fund Advisers Trust lifted its holdings in shares of Coastal Financial by 45.4% in the first quarter. Emerald Mutual Fund Advisers Trust now owns 156,664 shares of the company's stock worth $11,922,000 after acquiring an additional 48,927 shares during the last quarter. 59.24% of the stock is currently owned by institutional investors.

More Coastal Financial News

Here are the key news stories impacting Coastal Financial this week:

• Negative Sentiment: Several law firms publicized a securities class action covering investors who bought CCB shares from October 28, 2024, through July 29, 2026. The claims allege Coastal misrepresented credit quality and risk management in its CCBX Banking-as-a-Service business. The lead-plaintiff deadline is December 1, 2026. Kaplan Fox class-action notice
• Negative Sentiment: The lawsuit follows a reported $68.8 million credit expense tied to one CCBX partner, along with valuation adjustments, which reportedly triggered a sharp prior selloff. The allegations are not findings of wrongdoing, but the underlying credit concerns and potential litigation costs could weigh on investor sentiment. Report on lawsuit and credit-risk allegations

Coastal Financial Company Profile

Coastal Financial Corporation is a bank holding company headquartered in Everett, Washington. Its principal subsidiary, Coastal Community Bank, provides banking services to individuals, families, and businesses in the Pacific Northwest, with a focus on communities in the Puget Sound region.

Coastal Community Bank offers consumer and commercial deposit accounts, residential and commercial real estate lending, business loans, lines of credit, treasury management, online and mobile banking, and other traditional banking products.

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