BTGO (NYSE:BTGO) Shares Gap Up - Should You Buy?

Key Points

• BTGO shares opened higher, rising from a previous close of $6.25 to $6.61 before trading at approximately $6.43. The company has a market capitalization of about $744 million.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $12.77, although several firms recently cut their targets substantially. Price targets now range from $8 to $11 among the highlighted analysts.
• BTGO reported a quarterly loss of $0.16 per share, missing the $0.03 consensus estimate, despite generating $4.05 billion in revenue. The company also authorized a $50 million share repurchase plan, while insiders sold shares primarily to cover tax obligations on vested equity awards.

BTGO (NYSE:BTGO - Get Free Report) gapped up before the market opened on Thursday . The stock had previously closed at $6.25, but opened at $6.61. BTGO shares last traded at $6.4250, with a volume of 412,745 shares trading hands.

Analyst Ratings Changes

A number of research analysts have commented on BTGO shares. Rosenblatt Securities reduced their price target on shares of BTGO from $15.00 to $10.00 and set a "buy" rating on the stock in a research report on Thursday, August 13th. Wells Fargo & Company dropped their target price on BTGO from $13.00 to $11.00 and set an "overweight" rating for the company in a report on Thursday, August 13th. Wedbush dropped their price target on shares of BTGO from $15.00 to $8.00 and set an "outperform" rating for the company in a research report on Thursday, August 13th. Citigroup reduced their price target on BTGO from $17.00 to $10.00 and set a "buy" rating on the stock in a report on Friday, August 14th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of BTGO in a research note on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, BTGO currently has a consensus rating of "Moderate Buy" and an average price target of $12.77.

BTGO Price Performance

The firm has a market capitalization of $744.46 million and a P/E ratio of -4.43. The company's 50-day simple moving average is $5.23 and its two-hundred day simple moving average is $8.05.

BTGO (NYSE:BTGO - Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.13). The firm had revenue of $4.05 billion for the quarter. Analysts predict that BTGO will post -0.39 earnings per share for the current year.

BTGO announced that its Board of Directors has initiated a share repurchase plan on Wednesday, June 17th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 7.9% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at BTGO

In other news, CEO Michael Belshe sold 38,691 shares of BTGO stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $4.89, for a total transaction of $189,198.99. Following the completion of the sale, the chief executive officer owned 798,464 shares of the company's stock, valued at approximately $3,904,488.96. The trade was a 4.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Edward Reginelli sold 9,021 shares of BTGO stock in a transaction on Friday, July 24th. The shares were sold at an average price of $4.89, for a total value of $44,112.69. Following the sale, the chief financial officer directly owned 582,489 shares of the company's stock, valued at approximately $2,848,371.21. This trade represents a 1.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 48,464 shares of company stock worth $237,096.

About BTGO

BitGo Holdings Inc is the digital asset infrastructure company delivering custody, wallets, staking, trading, financing, stablecoins and settlement services from regulated cold storage. BitGo Holdings Inc is based in NEW YORK.

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