Circle Internet Group (NYSE:CRCL) Shares Gap Down - Should You Sell?

Key Points

• Circle shares fell 4.5%, opening at $58.98 after previously closing at $62.61, and later trading near $57.95. The stock remains below its 50-day and 200-day moving averages of $76.03 and $86.63.
• Analyst sentiment is mixed, with a consensus “Hold” rating and $104.18 price target. Recent actions included Needham raising its target to $150, while Morgan Stanley downgraded the stock to “equal weight” with a $38 target.
• Circle’s latest quarterly earnings missed expectations, reporting $0.21 EPS versus a $0.27 consensus, although revenue rose 20% year over year to $694.13 million. Insiders sold 1.91 million shares worth about $151 million over the past three months, primarily through pre-arranged plans.

Circle Internet Group, Inc. (NYSE:CRCL - Get Free Report)'s share price gapped down before the market opened on Monday . The stock had previously closed at $62.61, but opened at $58.98. Circle Internet Group shares last traded at $57.9450, with a volume of 3,872,766 shares trading hands.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. Needham & Company LLC upped their price objective on shares of Circle Internet Group from $130.00 to $150.00 and gave the company a "buy" rating in a research note on Tuesday, May 12th. Compass Point set a $62.00 target price on Circle Internet Group in a research note on Wednesday, July 15th. KeyCorp assumed coverage on shares of Circle Internet Group in a research note on Tuesday, May 26th. They issued a "sector weight" rating for the company. Morgan Stanley lowered Circle Internet Group from an "overweight" rating to an "equal weight" rating and set a $38.00 price objective for the company. in a research report on Monday. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $101.00 price target on shares of Circle Internet Group in a research note on Tuesday, May 12th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, fourteen have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $104.18.

Circle Internet Group Trading Down 4.5%

The stock has a 50 day moving average of $76.03 and a 200-day moving average of $86.63. The company has a market capitalization of $14.87 billion, a P/E ratio of -18.73 and a beta of 0.22.

Circle Internet Group (NYSE:CRCL - Get Free Report) last issued its earnings results on Monday, May 11th. The company reported $0.21 earnings per share (EPS) for the quarter, missing the consensus estimate 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 for the quarter. The business's quarterly revenue was up 20.0% on a year-over-year basis. As a group, sell-side analysts expect that Circle Internet Group, Inc. will post 0.79 EPS for the current fiscal year.

Insider Activity

In other Circle Internet Group news, Director Patrick Sean Neville sold 50,000 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $62.65, for a total transaction of $3,132,500.00. Following the sale, the director directly owned 2,018 shares of the company's stock, valued at $126,427.70. The trade was a 96.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through 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 that occurred on Thursday, July 2nd. The shares were sold at an average price of $64.40, for a total value of $117,916.40. Following the transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. 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 three months, insiders sold 1,907,229 shares of company stock worth $151,041,167. 10.85% of the stock is owned by insiders.

Institutional Trading of Circle Internet Group

Large investors have recently bought and sold shares of the stock. Creative Planning acquired a new position in shares of Circle Internet Group in the second quarter valued at about $295,000. Arrowstreet Capital Limited Partnership acquired a new stake in shares of Circle Internet Group during the second quarter worth about $1,474,000. Invesco Ltd. purchased a new stake in Circle Internet Group in the second quarter valued at approximately $47,640,000. EverSource Wealth Advisors LLC purchased a new stake in Circle Internet Group in the second quarter valued at approximately $27,000. Finally, Baird Financial Group Inc. acquired a new position in Circle Internet Group in the 2nd quarter worth approximately $2,649,000.

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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