Coastal Financial (NASDAQ:CCB) Shares Down 7.7% - What's Next?

Key Points

• Coastal Financial shares fell 7.7% in Thursday trading, dropping to around $71.55 after trading below the prior close of $77.55. Volume was lighter than usual, with about 99,715 shares changing hands versus an average of 149,848.
• Recent earnings were well below expectations, as the company reported $0.78 EPS versus the $1.02 consensus and revenue of $56.3 million versus estimates of $138.63 million. Analysts still expect full-year EPS of 4.57.
• Wall Street sentiment remains mixed but generally positive: the stock has a consensus “Moderate Buy” rating with an average target price of $122.60, though some firms have recently cut targets or downgraded the name. Institutional investors continue to hold a significant stake, owning 59.24% of the company.

Shares of Coastal Financial Corporation (NASDAQ:CCB - Get Free Report) dropped 7.7% during mid-day trading on Thursday . The stock traded as low as $71.59 and last traded at $71.5480. 99,715 shares changed hands during mid-day trading, a decline of 33% from the average session volume of 149,848 shares. The stock had previously closed at $77.55.

Wall Street Analysts Forecast Growth

CCB has been the subject of several recent research reports. Wall Street Zen raised Coastal Financial from a "sell" rating to a "hold" rating in a report on Saturday, May 16th. Stephens restated an "overweight" rating and set a $110.00 price target on shares of Coastal Financial in a research note on Friday, May 1st. Keefe, Bruyette & Woods lowered their price objective on shares of Coastal Financial from $115.00 to $95.00 and set an "outperform" rating for the company in a research note on Friday, May 1st. Weiss Ratings reiterated a "hold (c)" rating on shares of Coastal Financial in a report on Monday, June 29th. Finally, Zacks Research upgraded shares of Coastal Financial from a "strong sell" rating to a "hold" rating in a report on Tuesday, June 30th. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $122.60.

Coastal Financial Price Performance

The firm has a market capitalization of $1.10 billion, a PE ratio of 22.60 and a beta of 0.72. The company has a current ratio of 1.06, a quick ratio of 1.03 and a debt-to-equity ratio of 0.10. The company has a fifty day moving average price of $73.86 and a two-hundred day moving average price of $82.34.

Coastal Financial (NASDAQ:CCB - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The company reported $0.78 EPS for the quarter, missing the consensus estimate of $1.02 by ($0.24). Coastal Financial had a return on equity of 10.20% and a net margin of 7.35%.The firm had revenue of $56.30 million for the quarter, compared to analyst estimates of $138.63 million. Sell-side analysts forecast that Coastal Financial Corporation will post 4.57 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. EverSource Wealth Advisors LLC increased its stake in shares of Coastal Financial by 129.0% during the fourth quarter. EverSource Wealth Advisors LLC now owns 300 shares of the company's stock worth $34,000 after acquiring an additional 169 shares during the period. Caitong International Asset Management Co. Ltd acquired a new position in shares of Coastal Financial during the 4th quarter worth approximately $50,000. Smartleaf Asset Management LLC lifted its position 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 valued at $72,000 after acquiring an additional 621 shares in the last quarter. Russell Investments Group Ltd. lifted its holdings in Coastal Financial by 229.5% in the 2nd quarter. Russell Investments Group Ltd. now owns 827 shares of the company's stock valued at $80,000 after purchasing an additional 576 shares in the last quarter. Finally, Tower Research Capital LLC TRC boosted its position in Coastal Financial by 521.7% during the second quarter. Tower Research Capital LLC TRC now owns 1,262 shares of the company's stock worth $122,000 after acquiring an additional 1,059 shares during the last quarter. Institutional investors and hedge funds own 59.24% of the company's stock.

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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