Coastal Financial (NASDAQ:CCB) Announces Quarterly Earnings Results, Misses Expectations By $0.25 EPS

Key Points

• Coastal Financial reported $0.78 EPS for the quarter, missing analysts' estimate of $1.03 by $0.25 and reporting revenue of $56.3 million versus a $138.43 million consensus, with a return on equity of 10.01% and a net margin of 7.11%.
• The stock plunged 14.0% (down $12.17) to $74.51 on heavy volume (386,063 shares vs. average 164,578), leaving a market cap of $1.14 billion, a P/E of 24.51, and a 52-week range of $70.72–$120.05.
• Analyst views are mixed but the average rating remains a "Buy" with a consensus target of $133.60, while institutional investors own about 59.24% of the shares amid several recent stake changes.

Coastal Financial (NASDAQ:CCB - Get Free Report) posted its earnings results on Wednesday. The company reported $0.78 EPS for the quarter, missing analysts' consensus estimates of $1.03 by ($0.25), FiscalAI reports. The company had revenue of $56.30 million during the quarter, compared to the consensus estimate of $138.43 million. Coastal Financial had a return on equity of 10.01% and a net margin of 7.11%.

Coastal Financial Trading Down 14.0%

NASDAQ CCB traded down $12.17 during trading hours on Wednesday, reaching $74.51. The company's stock had a trading volume of 386,063 shares, compared to its average volume of 164,578. The firm has a fifty day simple moving average of $79.13 and a 200-day simple moving average of $97.13. The stock has a market cap of $1.14 billion, a P/E ratio of 24.51 and a beta of 0.87. Coastal Financial has a 52 week low of $70.72 and a 52 week high of $120.05. The company has a debt-to-equity ratio of 0.10, a current ratio of 1.06 and a quick ratio of 1.04.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Smartleaf Asset Management LLC grew its stake in shares of Coastal Financial by 20,700.0% in the fourth quarter. Smartleaf Asset Management LLC now owns 624 shares of the company's stock worth $72,000 after purchasing an additional 621 shares during the last quarter. Russell Investments Group Ltd. grew its stake in shares of Coastal Financial by 229.5% in the second quarter. Russell Investments Group Ltd. now owns 827 shares of the company's stock worth $80,000 after purchasing an additional 576 shares during the last quarter. Tower Research Capital LLC TRC grew its stake in shares of Coastal Financial by 521.7% in the second quarter. Tower Research Capital LLC TRC now owns 1,262 shares of the company's stock worth $122,000 after purchasing an additional 1,059 shares during the last quarter. DRW Securities LLC bought a new stake in shares of Coastal Financial in the fourth quarter worth $214,000. Finally, Brooklyn Investment Group grew its stake in shares of Coastal Financial by 28.0% in the third quarter. Brooklyn Investment Group now owns 2,063 shares of the company's stock worth $223,000 after purchasing an additional 451 shares during the last quarter. Institutional investors own 59.24% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on CCB shares. Zacks Research raised shares of Coastal Financial from a "strong sell" rating to a "hold" rating in a report on Monday, April 6th. Keefe, Bruyette & Woods dropped their target price on shares of Coastal Financial from $135.00 to $125.00 and set an "outperform" rating for the company in a report on Monday, February 2nd. TD Cowen raised shares of Coastal Financial to a "strong-buy" rating in a report on Monday, April 13th. Weiss Ratings cut shares of Coastal Financial from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, March 2nd. Finally, Hovde Group dropped their target price on shares of Coastal Financial from $140.00 to $133.00 and set an "outperform" rating for the company in a report on Friday, January 30th. Two equities research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Coastal Financial presently has an average rating of "Buy" and a consensus target price of $133.60.

About Coastal Financial

Coastal Financial Corporation is a bank holding company whose principal subsidiary, Coastal Community Bank, provides a full range of community banking services to clients along North Carolina's central and eastern coastline. The company focuses on delivering personalized relationship banking to individuals, small businesses, and local professionals in seaside and inland communities.

Through Coastal Community Bank, Coastal Financial offers deposit products including checking, savings, money market accounts and certificates of deposit.

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