Coastal Financial (NASDAQ:CCB) Shares Gap Down on Disappointing Earnings

Key Points

• Gapped down after an earnings miss: Coastal Financial shares fell after the company reported EPS of $0.78 versus $1.03 expected and revenue of $56.3M versus $138.43M expected, opening lower and last trading around $79.75 (down about 8.7%).
• Analyst outlook remains mixed but bullish on average: MarketBeat shows a consensus rating of "Buy" with a $133.60 target despite several firms trimming price targets and some downgrades.
• Significant institutional ownership and recent stake increases: About 59.24% of the stock is held by institutions, with notable increases from firms like Goldman Sachs (up 44.8% to 73,503 shares) and AQR, UBS and others.

Coastal Financial Corporation (NASDAQ:CCB - Get Free Report)'s stock price gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $86.68, but opened at $82.68. Coastal Financial shares last traded at $79.7450, with a volume of 40,117 shares traded.

The company reported $0.78 earnings per share for the quarter, missing the consensus estimate of $1.03 by ($0.25). The firm had revenue of $56.30 million for the quarter, compared to the consensus estimate of $138.43 million. Coastal Financial had a net margin of 7.11% and a return on equity of 10.01%.

Analyst Upgrades and Downgrades

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

Institutional Trading of Coastal Financial

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

Coastal Financial Stock Down 8.7%

The company has a quick ratio of 1.04, a current ratio of 1.06 and a debt-to-equity ratio of 0.10. The company's fifty day moving average is $79.13 and its 200-day moving average is $97.13. The company has a market cap of $1.20 billion, a PE ratio of 26.02 and a beta of 0.87.

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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