Coinbase Global (NASDAQ:COIN) Sets New 12-Month Low on Analyst Downgrade

Key Points

• Coinbase shares fell 10.6% to a new 52-week low of $139.11 after Oppenheimer cut its price target from $209 to $193, despite maintaining an outperform rating. Analysts overall rate the stock “Hold,” with a consensus price target of $221.31.
• Coinbase’s second-quarter results missed expectations, including a $359 million net loss and revenue of $1.22 billion, down 18.5% year over year. Lower trading volumes and subdued crypto-market volatility weighed on transaction revenue, producing a third consecutive quarterly loss.
• The company is seeking to diversify beyond spot trading through derivatives, stablecoins, prediction markets, Base and agent-driven finance, while capturing a record 10.3% share of global crypto trading volume. A federal judge’s dismissal of much of a customer lawsuit also reduced a major legal overhang, though insiders have sold more than $5.3 million of stock over the past 90 days.

Coinbase Global, Inc. (NASDAQ:COIN) reached a new 52-week low during mid-day trading on Saturday after Oppenheimer lowered their price target on the stock from $209.00 to $193.00. Oppenheimer currently has an outperform rating on the stock. Coinbase Global traded as low as $139.11 and last traded at $146.26, with a volume of 20822632 shares traded. The stock had previously closed at $163.58.

Several other analysts also recently weighed in on COIN. Raymond James Financial initiated coverage on shares of Coinbase Global in a research note on Wednesday, July 22nd. They issued a "market perform" rating for the company. Jefferies Financial Group raised their price objective on Coinbase Global from $151.00 to $181.00 and gave the company a "hold" rating in a research note on Thursday, April 9th. B. Riley Financial decreased their price objective on Coinbase Global from $243.00 to $203.00 and set a "neutral" rating on the stock in a report on Monday, June 1st. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $208.00 target price on shares of Coinbase Global in a research note on Wednesday, June 17th. Finally, JPMorgan Chase & Co. increased their target price on Coinbase Global from $252.00 to $290.00 and gave the company an "overweight" rating in a report on Tuesday, May 5th. Eighteen equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $221.31.

Insiders Place Their Bets

In other news, insider Paul Grewal sold 1,960 shares of the business's stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $176.88, for a total transaction of $346,684.80. Following the transaction, the insider directly owned 84,753 shares of the company's stock, valued at approximately $14,991,110.64. The trade was a 2.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Jennifer N. Jones sold 2,051 shares of the business's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $158.15, for a total value of $324,365.65. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 30,627 shares of company stock worth $5,327,841. 16.66% of the stock is currently owned by company insiders.

Key Headlines Impacting Coinbase Global

Here are the key news stories impacting Coinbase Global this week:

• Positive Sentiment: Coinbase captured a record 10.3% of global crypto trading volume, up from 9.1% in the first quarter, indicating that it is gaining share even as the overall market contracts. Coinbase Hits Record Market Share Despite Loss
• Positive Sentiment: Management highlighted growth in derivatives, stablecoins, prediction markets, Base and agent-driven finance as it seeks to become an “everything exchange” less dependent on spot crypto trading. Some analysts believe this diversification could improve resilience during crypto downturns. Coinbase Earnings Call Highlights
• Positive Sentiment: A federal judge dismissed much of a customer lawsuit alleging Coinbase illegally sold unregistered securities, reducing a significant legal overhang, although related litigation risk remains. Coinbase Wins Dismissal in Token Lawsuit
• Neutral Sentiment: Several analysts maintained Buy or Outperform ratings and cited long-term upside, but lowered targets after the earnings report. Needham reduced its target to $177, while Oppenheimer cut its target to $193; Canaccord reaffirmed a $300 target.
• Negative Sentiment: Second-quarter revenue fell about 19% year over year to $1.22 billion, below estimates near $1.3 billion. Transaction revenue declined 21% to $599 million as lower spot-market volumes and subdued volatility hurt trading activity. Coinbase Reports Third Straight Quarterly Loss
• Negative Sentiment: Coinbase posted a GAAP net loss of approximately $359 million, or $1.36 per share, far worse than expectations, marking its third consecutive quarterly loss. Subscription and services growth was not sufficient to offset the trading slump. Coinbase Q2 Results Miss Estimates
• Negative Sentiment: Falling Bitcoin prices and reduced crypto ETF inflows are pressuring the entire crypto-linked equity group. Analysts also cut earnings forecasts, with some projecting a full-year loss, reinforcing concerns that Coinbase remains highly exposed to the crypto cycle.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in COIN. MV Capital Management Inc. purchased a new stake in shares of Coinbase Global in the 4th quarter worth about $27,000. Palisade Asset Management LLC bought a new stake in shares of Coinbase Global during the 3rd quarter valued at about $29,000. Osbon Capital Management LLC purchased a new position in shares of Coinbase Global during the fourth quarter valued at about $30,000. Glen Eagle Advisors LLC raised its stake in Coinbase Global by 101.1% in the first quarter. Glen Eagle Advisors LLC now owns 175 shares of the cryptocurrency exchange's stock worth $31,000 after buying an additional 88 shares in the last quarter. Finally, Archer Investment Corp raised its stake in Coinbase Global by 546.4% in the first quarter. Archer Investment Corp now owns 181 shares of the cryptocurrency exchange's stock worth $32,000 after buying an additional 153 shares in the last quarter. 68.84% of the stock is owned by hedge funds and other institutional investors.

Coinbase Global Trading Down 10.6%

The company has a debt-to-equity ratio of 0.44, a current ratio of 2.14 and a quick ratio of 2.14. The stock's 50 day moving average is $163.23 and its 200-day moving average is $181.72. The company has a market capitalization of $38.53 billion, a P/E ratio of -38.09, a P/E/G ratio of 11.88 and a beta of 3.35.

Coinbase Global (NASDAQ:COIN - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The cryptocurrency exchange reported ($1.36) earnings per share for the quarter, missing the consensus estimate of ($0.44) by ($0.92). Coinbase Global had a negative net margin of 15.72% and a positive return on equity of 3.04%. The firm had revenue of $1.22 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same period in the previous year, the firm posted $5.14 earnings per share. The business's revenue was down 18.5% compared to the same quarter last year. As a group, equities research analysts anticipate that Coinbase Global, Inc. will post 1.25 earnings per share for the current year.

About Coinbase Global

Coinbase Global, Inc is a U.S.-based company that operates one of the largest cryptocurrency exchange platforms. Founded in 2012 by Brian Armstrong and Fred Ehrsam and headquartered in San Francisco, Coinbase provides technology and infrastructure to buy, sell, store and use a broad range of digital assets. The company became a public company through a direct listing on the NASDAQ in April 2021 and offers services tailored to both retail and institutional customers.

Coinbase's product portfolio includes its consumer trading platform, a self-custody mobile wallet, and institutional services such as custody, prime brokerage and execution tools.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.