Circle Internet Group (NYSE:CRCL) Rating Increased to Hold at Susquehanna

Key Points

• Susquehanna upgraded Circle Internet Group to “hold,” adding to a mixed analyst backdrop that currently leaves the stock with an average Hold rating and a consensus target price of $117.38.
• The company’s latest earnings missed expectations, with Q1 EPS of $0.21 versus the $0.27 estimate, even though revenue rose 20% year over year to $694.13 million.
• Insider selling has been notable, including a 50,000-share sale by Director Patrick Sean Neville and additional sales by other insiders, which may weigh on sentiment as the stock remains under pressure.

Circle Internet Group (NYSE:CRCL - Get Free Report) was upgraded by equities research analysts at Susquehanna to a "hold" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

Several other analysts also recently commented on CRCL. Zacks Research raised Circle Internet Group from a "strong sell" rating to a "hold" rating in a research note on Tuesday, March 17th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $101.00 target price on shares of Circle Internet Group in a research note on Tuesday, May 12th. Clear Str upgraded Circle Internet Group from a "hold" rating to a "strong-buy" rating in a research note on Monday, March 16th. Wall Street Zen downgraded Circle Internet Group from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Finally, Wells Fargo & Company lifted their price objective on shares of Circle Internet Group from $111.00 to $142.00 and gave the company an "overweight" rating in a research report on Tuesday, May 5th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, thirteen have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Circle Internet Group currently has an average rating of "Hold" and a consensus target price of $117.38.

Circle Internet Group Stock Performance

Shares of Circle Internet Group stock opened at $64.56 on Wednesday. Circle Internet Group has a 1 year low of $49.90 and a 1 year high of $262.97. The company has a market capitalization of $16.05 billion and a P/E ratio of -20.17. The company's fifty day moving average is $95.51 and its two-hundred day moving average is $89.23.

Circle Internet Group (NYSE:CRCL - Get Free Report) last announced its earnings results on Monday, May 11th. The company reported $0.21 EPS for the quarter, missing analysts' consensus estimates of $0.27 by ($0.06). Circle Internet Group had a negative net margin of 2.76% and a positive return on equity of 2.89%. The business had revenue of $694.13 million during the quarter. Circle Internet Group's revenue was up 20.0% compared to the same quarter last year. As a group, equities analysts expect that Circle Internet Group will post 1.02 earnings per share for the current year.

Insider Activity at Circle Internet Group

In related news, Director Patrick Sean Neville sold 50,000 shares of the firm's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $62.65, for a total value of $3,132,500.00. Following the completion of the sale, the director owned 2,018 shares in the company, valued at $126,427.70. This trade represents a 96.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Hossein Razzaghi sold 1,831 shares of the business's stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $64.40, for a total transaction of $117,916.40. Following the sale, the insider directly owned 662,856 shares in the company, valued at approximately $42,687,926.40. This represents a 0.28% decrease in their position. The SEC filing for this sale provides additional information. 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. In the last ninety days, insiders sold 1,901,114 shares of company stock worth $153,007,135. 10.85% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Circle Internet Group

A number of hedge funds and other institutional investors have recently modified their holdings of CRCL. EverSource Wealth Advisors LLC acquired a new position in Circle Internet Group in the 2nd quarter valued at $27,000. Larson Financial Group LLC boosted its holdings in shares of Circle Internet Group by 3,800.0% during the third quarter. Larson Financial Group LLC now owns 195 shares of the company's stock worth $26,000 after purchasing an additional 190 shares during the last quarter. Harbour Investments Inc. grew its position in shares of Circle Internet Group by 170.0% in the fourth quarter. Harbour Investments Inc. now owns 378 shares of the company's stock valued at $30,000 after purchasing an additional 238 shares during the period. Montag A & Associates Inc. purchased a new stake in shares of Circle Internet Group in the third quarter valued at $33,000. Finally, National Bank of Canada FI acquired a new position in Circle Internet Group in the third quarter valued at $37,000.

Key Stories Impacting Circle Internet Group

Here are the key news stories impacting Circle Internet Group this week:

• Positive Sentiment: Circle completed a second ARC token presale, which may indicate continued progress on its crypto product expansion. Circle Internet Group completes second ARC token presale
• Neutral Sentiment: Some analysts still see meaningful upside for Circle, with comments that the stock remains attractive relative to long-term sales growth even after the recent selloff.
• Neutral Sentiment: Susquehanna and Compass Point initiated or reiterated neutral views, suggesting the market is still weighing Circle’s growth potential against valuation and regulatory/competitive risks.
• Negative Sentiment: Director Patrick Sean Neville sold 50,000 shares under a pre-arranged trading plan, a large reduction that can weigh on sentiment even though it was disclosed as Rule 10b5-1 activity.
• Negative Sentiment: CAO Tamara L. Schulz and insider Hossein Razzaghi also sold shares, reinforcing concerns that company insiders are trimming exposure while the stock is under pressure.
• Negative Sentiment: Reports about rising stablecoin competition and Visa’s Open USD push are making investors question whether Circle’s stablecoin economics and long-term competitive advantage are at risk.

Circle Internet Group Company Profile

Circle Internet Group NYSE: CRCL is a financial technology company that builds infrastructure to enable businesses and developers to use and move money on public blockchains. Co-founded by Jeremy Allaire and Sean Neville, the company is best known as a principal issuer and steward of USDC, a dollar-pegged stablecoin developed through the CENTRE Consortium, which Circle co-founded with Coinbase. Jeremy Allaire serves as CEO and has been a visible leader in the company’s strategy and public engagement around digital currency and payments innovation.

Circle’s core products and services center on digital currency issuance and programmable payments.

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