Coastal Financial (NASDAQ:CCB) Cut to "Outperform" at Raymond James Financial

Key Points

• Raymond James downgraded Coastal Financial from “strong buy” to “outperform” and set a $50 price target, implying approximately 25% upside from the prior close.
• Coastal reported a significant second-quarter miss, posting a $2.76 per-share loss versus expected earnings of about $1.01 and revenue of $60.37 million versus $148.5 million forecast. The $42.1 million net loss was driven primarily by a $68.8 million credit expense tied to a single BaaS partner relationship.
• Despite the earnings setback, the company reported record net interest income and continued BaaS growth; however, securities-fraud investigations and a governance overhaul add litigation and execution risks. Institutional investors own 59.24% of the shares, with several major holders recently increasing their positions.

Coastal Financial (NASDAQ:CCB - Get Free Report) was downgraded by equities research analysts at Raymond James Financial from a "strong-buy" rating to an "outperform" rating in a research report issued to clients and investors on Friday. They currently have a $50.00 target price on the stock. Raymond James Financial's price objective suggests a potential upside of 25.28% from the stock's previous close.

CCB has been the topic of a number of other research reports. TD Cowen cut their price target on shares of Coastal Financial from $145.00 to $120.00 and set a "buy" rating on the stock in a research note on Thursday, April 30th. Wall Street Zen upgraded Coastal Financial from a "sell" rating to a "hold" rating in a report on Saturday, May 16th. Stephens reiterated an "overweight" rating and set a $110.00 target price on shares of Coastal Financial in a report on Friday, May 1st. Keefe, Bruyette & Woods dropped their target price on shares of Coastal Financial from $95.00 to $53.00 and set an "outperform" rating for the company in a research report on Friday. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Coastal Financial in a report on Monday, June 29th. Five investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $103.50.

Coastal Financial Price Performance

CCB stock opened at $39.91 on Friday. The stock has a market capitalization of $608.59 million, a price-to-earnings ratio of 12.51 and a beta of 0.72. The stock's fifty day simple moving average is $73.50 and its 200-day simple moving average is $80.23. Coastal Financial has a 52-week low of $36.61 and a 52-week high of $120.05. The company has a quick ratio of 1.03, a current ratio of 1.06 and a debt-to-equity ratio of 0.10.

Coastal Financial (NASDAQ:CCB - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported ($2.76) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.01 by ($3.77). Coastal Financial had a return on equity of 10.20% and a net margin of 7.35%.The business had revenue of $60.37 million during the quarter, compared to analyst estimates of $148.50 million. Equities research analysts expect that Coastal Financial will post 4.57 EPS for the current year.

Institutional Investors Weigh In On Coastal Financial

A number of large investors have recently modified their holdings of CCB. First Bank & Trust boosted its holdings in Coastal Financial by 5.5% in the 2nd quarter. First Bank & Trust now owns 12,012 shares of the company's stock worth $931,000 after acquiring an additional 630 shares during the period. Bank of America Corp DE grew its stake in shares of Coastal Financial by 71.2% during the first quarter. Bank of America Corp DE now owns 86,657 shares of the company's stock valued at $6,595,000 after acquiring an additional 36,045 shares in the last quarter. The Manufacturers Life Insurance Company lifted its stake in shares of Coastal Financial by 1.4% in the first quarter. The Manufacturers Life Insurance Company now owns 337,819 shares of the company's stock worth $25,708,000 after acquiring an additional 4,611 shares in the last quarter. Quantinno Capital Management LP grew its stake in Coastal Financial by 1,026.9% during the 1st quarter. Quantinno Capital Management LP now owns 25,377 shares of the company's stock valued at $1,931,000 after purchasing an additional 23,125 shares in the last quarter. Finally, Mendon Capital Advisors Corp raised its position in shares of Coastal Financial by 86.7% in the 1st quarter. Mendon Capital Advisors Corp now owns 56,000 shares of the company's stock valued at $4,262,000 after purchasing an additional 26,000 shares in the last quarter. Institutional investors and hedge funds own 59.24% of the company's stock.

Key Coastal Financial News

Here are the key news stories impacting Coastal Financial this week:

• Positive Sentiment: Coastal reported record net interest income and continued growth in its BaaS business. Management also discussed a strategic shift intended to improve the company’s future operating profile. Coastal Financial Corporation Announces Second Quarter 2026 Results
• Neutral Sentiment: Coastal appointed a long-serving non-employee director as executive chair, reshaping its governance structure. The move could provide additional oversight during the company’s strategic transition, but investors may view the leadership change as part of a response to recent challenges. Coastal Financial Reshapes Governance With New Executive Chair
• Negative Sentiment: Second-quarter results were far below expectations: Coastal posted a loss of $2.76 per share, versus analyst estimates for approximately $0.95–$1.01 of earnings, while revenue of $60.37 million missed the roughly $148.5 million consensus. The company reported a $42.1 million net loss, primarily caused by a $68.8 million credit expense related to a single, isolated CCBX partner relationship. Coastal Financial Corporation Reports Q2 Loss
• Negative Sentiment: Several law firms announced securities-fraud investigations following the earnings disclosure and stock decline. These announcements do not establish wrongdoing, but they add litigation and reputational risk and are likely intensifying selling pressure. CCB Investor Alert

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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