Coastal Financial (NASDAQ:CCB) Shares Up 6.5% - Here's What Happened

Key Points

• Coastal Financial shares rose 6.5% to about $51.76 in mid-day trading, despite trading volume running 40% below its average.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” from five Buy, one Hold, and one Sell rating, although several analysts recently cut their price targets. The average target is $91.33.
• The company reported a significant quarterly earnings miss, posting a loss of $2.76 per share versus expectations for $1.01, while revenue of $178.07 million exceeded estimates. Insiders have recently bought about $1.12 million of company stock, including purchases by the CEO and a director.

Coastal Financial Corporation (NASDAQ:CCB - Get Free Report)'s share price traded up 6.5% during mid-day trading on Tuesday . The company traded as high as $51.06 and last traded at $51.7550. 111,160 shares traded hands during mid-day trading, a decline of 40% from the average session volume of 185,029 shares. The stock had previously closed at $48.61.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on CCB shares. TD Cowen reduced their price objective on shares of Coastal Financial from $110.00 to $47.00 and set a "buy" rating for the company in a research note on Friday, July 31st. Weiss Ratings reissued a "hold (c)" rating on shares of Coastal Financial in a report on Monday, June 29th. Stephens restated an "overweight" rating and set a $110.00 price target on shares of Coastal Financial in a research 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. Finally, Keefe, Bruyette & Woods lowered their price objective on Coastal Financial from $95.00 to $53.00 and set an "outperform" rating on the stock in a research report on Friday, July 31st. Five equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $91.33.

Coastal Financial Stock Up 8.5%

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 company has a market cap of $804.35 million, a PE ratio of -188.33 and a beta of 0.77. The company has a fifty day moving average price of $69.80 and a 200 day moving average price of $76.89.

Coastal Financial (NASDAQ:CCB - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The company reported ($2.76) earnings per share for the quarter, missing the consensus estimate of $1.01 by ($3.77). Coastal Financial had a negative return on equity of 0.79% and a negative net margin of 0.53%.The company had revenue of $178.07 million during the quarter, compared to the consensus estimate of $148.50 million. As a group, analysts anticipate that Coastal Financial Corporation will post 1.26 EPS for the current year.

Insider Buying and Selling at Coastal Financial

In related news, Director Steven D. Hovde acquired 10,000 shares of the company's stock in a transaction dated Thursday, August 6th. The stock was bought at an average cost of $43.83 per share, with a total value of $438,300.00. Following the acquisition, the director owned 26,500 shares of the company's stock, valued at approximately $1,161,495. The trade was a 60.61% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Eric M. Sprink bought 10,000 shares of the business's stock in a transaction that occurred on Thursday, August 6th. The stock was bought at an average price of $44.45 per share, with a total value of $444,500.00. Following the completion of the transaction, the chief executive officer directly owned 173,238 shares of the company's stock, valued at $7,700,429.10. This represents a 6.13% increase in their position. The SEC filing for this purchase provides additional information. In the last 90 days, insiders have bought 25,290 shares of company stock worth $1,115,894. Corporate insiders own 13.49% of the company's stock.

Hedge Funds Weigh In On Coastal Financial

A number of hedge funds and other institutional investors have recently modified their holdings of the company. AQR Capital Management LLC raised its holdings in shares of Coastal Financial by 3.7% during 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 in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake 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 buying an additional 977 shares in the last quarter. Goldman Sachs Group Inc. grew its position in Coastal Financial by 44.8% during the first 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 last quarter. Empowered Funds LLC grew its position in Coastal Financial by 7.3% during the first 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 last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Coastal Financial by 4.1% during 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 acquiring an additional 1,048 shares in the last quarter. 59.24% of the stock is currently owned by hedge funds and other institutional investors.

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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