Bakkt (NYSE:BKKT) Announces Earnings Results, Misses Estimates By $0.37 EPS

Key Points

• Bakkt reported a quarterly loss of $0.34 per share, missing the consensus estimate of $0.03 by $0.37. The company also posted a negative 64.73% return on equity and an 8.37% negative net margin.
• Shares rose $0.11 to $7.64 in midday trading, but remain near the lower end of their 52-week range of $6.75 to $49.79. Bakkt has a market capitalization of approximately $340.8 million and a beta of 5.91.
• Insiders have been buying shares, including director Michael Alfred’s purchase of 365,000 shares for roughly $3.04 million; insiders acquired 865,000 shares over the past 90 days. Analysts maintain a consensus “Hold” rating with a $22 average price target.

Bakkt (NYSE:BKKT - Get Free Report) announced its earnings results on Monday. The company reported ($0.34) EPS for the quarter, missing the consensus estimate of $0.03 by ($0.37), Zacks reports. Bakkt had a negative return on equity of 64.73% and a negative net margin of 8.37%.

Bakkt Price Performance

Shares of Bakkt stock traded up $0.11 during midday trading on Monday, hitting $7.64. The company had a trading volume of 1,135,338 shares, compared to its average volume of 1,501,105. Bakkt has a 1-year low of $6.75 and a 1-year high of $49.79. The business's 50 day simple moving average is $8.19 and its two-hundred day simple moving average is $9.36. The stock has a market cap of $340.82 million, a PE ratio of -5.58 and a beta of 5.91.

Insider Buying and Selling

In related news, Director Michael Alfred purchased 365,000 shares of Bakkt stock in a transaction on Friday, May 15th. The stock was purchased at an average cost of $8.34 per share, with a total value of $3,044,100.00. Following the acquisition, the director directly owned 405,000 shares in the company, valued at approximately $3,377,700. This trade represents a 912.50% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. In the last ninety days, insiders have acquired 865,000 shares of company stock worth $7,018,900. 10.05% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Bakkt

A number of institutional investors have recently added to or reduced their stakes in the company. Advisory Services Network LLC bought a new stake in shares of Bakkt during the third quarter valued at approximately $30,000. Legal & General Group Plc lifted its position in Bakkt by 110.7% in the third quarter. Legal & General Group Plc now owns 982 shares of the company's stock worth $33,000 after purchasing an additional 516 shares during the period. Northwestern Mutual Wealth Management Co. bought a new position in Bakkt in the third quarter worth $41,000. Russell Investments Group Ltd. boosted its stake in Bakkt by 759.1% during the third quarter. Russell Investments Group Ltd. now owns 2,036 shares of the company's stock worth $69,000 after buying an additional 1,799 shares in the last quarter. Finally, BNP Paribas Financial Markets boosted its stake in Bakkt by 268.3% during the third quarter. BNP Paribas Financial Markets now owns 2,158 shares of the company's stock worth $73,000 after buying an additional 1,572 shares in the last quarter. 11.11% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the stock. Wall Street Zen upgraded shares of Bakkt from a "strong sell" rating to a "sell" rating in a report on Saturday, May 16th. Weiss Ratings upgraded Bakkt from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Thursday, July 2nd. One research analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $22.00.

Bakkt Company Profile

Bakkt Holdings, Inc is a digital asset platform that aims to bridge traditional finance and digital assets by offering institutional-grade custody, trading and settlement services. Established in 2018 by Intercontinental Exchange (ICE), the company initially made headlines with the launch of its physically settled Bitcoin futures contracts in 2019. Since then, Bakkt has expanded its product lineup to include spot trading of cryptocurrencies, a secure digital wallet for retail customers and a payment gateway that enables merchants to accept digital assets alongside fiat currencies.

The company's core offering centers on its custody infrastructure, which is built to meet robust regulatory and security standards.

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