BTGO (NYSE:BTGO) Trading 11.3% Higher - Here's Why

Key Points

• BTGO shares jumped 11.3% to about $6.00 during Wednesday’s trading, despite volume running 59% below the average session level.
• Analysts have recently cut their price targets, but the stock retains a “Moderate Buy” consensus with an average target of $12.77, well above its current price.
• BTGO missed quarterly earnings expectations, reporting a $0.16-per-share loss versus the projected $0.03 loss, while its board authorized a $50 million share buyback covering up to 7.9% of outstanding shares.

BTGO (NYSE:BTGO - Get Free Report) rose 11.3% during mid-day trading on Wednesday . The stock traded as high as $6.01 and last traded at $5.9990. Approximately 482,724 shares changed hands during mid-day trading, a decline of 59% from the average session volume of 1,164,641 shares. The stock had previously closed at $5.39.

Analyst Upgrades and Downgrades

BTGO has been the topic of several research reports. Wall Street Zen downgraded shares of BTGO from a "hold" rating to a "sell" rating in a report on Sunday, May 17th. Cantor Fitzgerald reduced their price objective on shares of BTGO from $15.00 to $13.00 and set an "overweight" rating for the company in a report on Monday. Citigroup decreased their target price on shares of BTGO from $17.00 to $10.00 and set a "buy" rating for the company in a research report on Friday, August 14th. Rosenblatt Securities lowered their target price on shares of BTGO from $15.00 to $10.00 and set a "buy" rating on the stock in a report on Thursday, August 13th. Finally, Mizuho dropped their price target on shares of BTGO from $14.00 to $11.00 and set an "outperform" rating on the stock in a research report on Friday, August 14th. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $12.77.

BTGO Stock Performance

The stock has a market cap of $731.13 million and a P/E ratio of -4.35. The company's 50 day moving average price is $5.20 and its 200-day moving average price is $8.09.

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

BTGO announced that its Board of Directors has approved a share buyback plan on Wednesday, June 17th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the company to repurchase up to 7.9% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In other news, CEO Michael Belshe sold 38,691 shares of the firm's stock in a transaction on Friday, July 24th. The stock was 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 directly owned 798,464 shares of the company's stock, valued at $3,904,488.96. This trade represents a 4.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 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 stock was sold at an average price of $4.89, for a total value of $44,112.69. Following the sale, the chief financial officer owned 582,489 shares in the company, valued at $2,848,371.21. The trade was 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. Insiders have sold 48,464 shares of company stock worth $237,096 over the last quarter.

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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