Coastal Financial (NASDAQ:CCB) Sets New 1-Year Low Following Weak Earnings

Key Points

• Coastal Financial shares plunged to a new 52-week low, trading as low as $57.04 after closing at $70.66, following disappointing quarterly results.
• The company reported a quarterly loss of $2.76 per share, far below the $1.01 analyst estimate, while revenue of $60.37 million missed expectations of $148.50 million.
• Despite the earnings miss, analysts maintain a consensus “Moderate Buy” rating with an average price target of $122.60; institutional investors own 59.24% of the stock.

Coastal Financial Corporation (NASDAQ:CCB - Get Free Report) reached a new 52-week low during trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $57.04 and last traded at $54.03, with a volume of 3145 shares trading hands. The stock had previously closed at $70.66.

The company reported ($2.76) earnings per share (EPS) for the quarter, missing the consensus estimate of $1.01 by ($3.77). Coastal Financial had a return on equity of 10.20% and a net margin of 7.35%.The company had revenue of $60.37 million during the quarter, compared to analysts' expectations of $148.50 million.

Analyst Upgrades and Downgrades

Several analysts recently commented on CCB shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Coastal Financial in a report on Monday, June 29th. Stephens reissued an "overweight" rating and issued a $110.00 price objective on shares of Coastal Financial in a report on Friday, May 1st. Wall Street Zen raised shares of Coastal Financial from a "sell" rating to a "hold" rating in a report on Saturday, May 16th. Keefe, Bruyette & Woods decreased their price target on shares of Coastal Financial from $115.00 to $95.00 and set an "outperform" rating on the stock in a research report on Friday, May 1st. Finally, Zacks Research raised shares of Coastal Financial from a "strong sell" rating to a "hold" rating in a research report on Tuesday, June 30th. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $122.60.

Institutional Investors Weigh In On Coastal Financial

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

Coastal Financial Stock Performance

The firm's 50-day moving average price is $74.10 and its 200-day moving average price is $80.77. The company has a debt-to-equity ratio of 0.10, a current ratio of 1.06 and a quick ratio of 1.03. The stock has a market cap of $702.57 million, a P/E ratio of 14.69 and a beta of 0.72.

Coastal Financial Company Profile

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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