Coastal Financial (NASDAQ:CCB) Rating Lowered to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Coastal Financial (NASDAQ: CCB) from a "hold" to a "strong sell," and other shops including Wall Street Zen and Weiss Ratings have also trimmed their views, signaling growing analyst concern.
• The company posted a material earnings miss for the quarter—$0.78 EPS vs. $1.02 expected and $56.3M revenue vs. $138.63M expected—highlighting weak near-term performance.
• Despite these downgrades, the Street's consensus remains a "Moderate Buy" with an average price target of $122.60, while the shares trade around $74.95 (50-day $78.58, 200-day $96.28), showing a wide gap between target and current price.

Coastal Financial (NASDAQ:CCB - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Tuesday,Zacks.com reports.

A number of other brokerages have also recently weighed in on CCB. Wall Street Zen cut shares of Coastal Financial from a "hold" rating to a "sell" rating in a research report on Saturday, May 2nd. Weiss Ratings cut shares of Coastal Financial from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, March 2nd. Stephens reissued an "overweight" rating and set a $110.00 price target on shares of Coastal Financial in a research report on Friday, May 1st. Hovde Group reduced their price target on shares of Coastal Financial from $140.00 to $133.00 and set an "outperform" rating on the stock in a research report on Friday, January 30th. Finally, TD Cowen cut their price objective on shares of Coastal Financial from $145.00 to $120.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. Four analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Coastal Financial presently has a consensus rating of "Moderate Buy" and an average price target of $122.60.

Coastal Financial Trading Up 0.3%

Shares of NASDAQ CCB opened at $74.95 on Tuesday. The company's fifty day moving average is $78.58 and its 200-day moving average is $96.28. The stock has a market cap of $1.14 billion, a price-to-earnings ratio of 23.50 and a beta of 0.76. Coastal Financial has a twelve month low of $70.72 and a twelve month high of $120.05. The company has a quick ratio of 1.04, a current ratio of 1.06 and a debt-to-equity ratio of 0.10.

Coastal Financial (NASDAQ:CCB - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The company reported $0.78 earnings per share for the quarter, missing analysts' consensus estimates of $1.02 by ($0.24). The firm had revenue of $56.30 million for the quarter, compared to the consensus estimate of $138.63 million. Coastal Financial had a return on equity of 10.35% and a net margin of 7.35%. Equities research analysts predict that Coastal Financial will post 4.56 EPS for the current year.

Institutional Investors Weigh In On Coastal Financial

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CCB. AQR Capital Management LLC increased its stake in Coastal Financial by 3.7% in the 1st quarter. AQR Capital Management LLC now owns 13,102 shares of the company's stock valued at $1,185,000 after buying an additional 473 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Coastal Financial by 15.1% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,436 shares of the company's stock valued at $672,000 after acquiring an additional 977 shares during the period. Goldman Sachs Group Inc. grew its position in shares of Coastal Financial by 44.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 73,503 shares of the company's stock valued at $6,645,000 after acquiring an additional 22,725 shares during the period. Empowered Funds LLC grew its position in shares of Coastal Financial by 7.3% in the 1st quarter. Empowered Funds LLC now owns 12,439 shares of the company's stock valued at $1,125,000 after acquiring an additional 848 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of Coastal Financial by 4.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 26,465 shares of the company's stock valued at $2,393,000 after acquiring an additional 1,048 shares during the period. 59.24% of the stock is currently owned by institutional investors and hedge funds.

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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