Bakkt (NYSE:BKKT) Shares Down 3.7% - Here's Why

Key Points

• Bakkt shares fell 3.7% in mid-day trading, with volume running below average. The stock traded between $7.57 and $7.97, reflecting continued weakness versus its recent levels.
• Recent earnings were disappointing: Bakkt reported a larger-than-expected loss of $0.41 per share and revenue of $243.59 million, missing analyst estimates. The company also posted negative net margin and return on equity.
• Insider and institutional activity was mixed but active, with one executive selling shares under a pre-arranged plan and a director buying 100,000 shares. Large investors such as Vanguard and UBS also increased their stakes, while analysts currently rate the stock around Hold.

Bakkt Holdings, Inc. (NYSE:BKKT - Get Free Report) was down 3.7% during mid-day trading on Thursday . The company traded as low as $7.57 and last traded at $7.6790. 731,715 shares were traded during trading, a decline of 34% from the average session volume of 1,111,819 shares. The stock had previously closed at $7.97.

Analyst Ratings Changes

Several research firms have recently weighed in on BKKT. Weiss Ratings upgraded shares of Bakkt from a "sell (e+)" rating to a "sell (d-)" rating in a report on Thursday, July 2nd. Wall Street Zen upgraded shares of Bakkt from a "strong sell" rating to a "sell" rating in a report on Saturday, May 16th. One investment analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Bakkt has an average rating of "Hold" and an average target price of $22.00.

Bakkt Stock Down 3.7%

The firm has a market capitalization of $342.56 million, a P/E ratio of -5.61 and a beta of 5.89. The stock has a fifty day moving average of $8.93 and a 200-day moving average of $10.20.

Bakkt (NYSE:BKKT - Get Free Report) last announced its earnings results on Monday, May 11th. The company reported ($0.41) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.10) by ($0.31). The firm had revenue of $243.59 million during the quarter, compared to analyst estimates of $297.94 million. Bakkt had a negative net margin of 8.37% and a negative return on equity of 64.73%.

Insider Activity

In other news, General Counsel Marc D'annunzio sold 7,780 shares of the business's stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $8.86, for a total value of $68,930.80. Following the sale, the general counsel owned 110,059 shares of the company's stock, valued at $975,122.74. The trade was a 6.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Michael Alfred bought 100,000 shares of Bakkt stock in a transaction that occurred on Wednesday, June 10th. The shares were acquired at an average price of $7.83 per share, with a total value of $783,000.00. Following the acquisition, the director directly owned 905,000 shares of the company's stock, valued at $7,086,150. The trade was a 12.42% increase in their position. The SEC filing for this purchase provides additional information. Insiders have acquired 865,000 shares of company stock worth $7,018,900 over the last ninety days. Insiders own 10.05% of the company's stock.

Hedge Funds Weigh In On Bakkt

A number of large investors have recently modified their holdings of the business. Vanguard Group Inc. increased its position in shares of Bakkt by 131.2% in the third quarter. Vanguard Group Inc. now owns 664,561 shares of the company's stock valued at $22,362,000 after acquiring an additional 377,101 shares during the last quarter. Renaissance Technologies LLC bought a new position in shares of Bakkt in the fourth quarter valued at $5,643,000. Geode Capital Management LLC grew its stake in shares of Bakkt by 13.2% in the fourth quarter. Geode Capital Management LLC now owns 489,428 shares of the company's stock valued at $4,914,000 after buying an additional 56,910 shares in the last quarter. Marshall Wace LLP acquired a new position in Bakkt during the third quarter worth $11,775,000. Finally, UBS Group AG increased its holdings in Bakkt by 638.5% during the fourth quarter. UBS Group AG now owns 264,462 shares of the company's stock worth $2,655,000 after buying an additional 228,653 shares during the last quarter. 11.11% of the stock is currently owned by institutional investors and hedge funds.

About Bakkt

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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