Coinbase Global (NASDAQ:COIN) Shares Gap Down Following Weak Earnings

Key Points

• Coinbase Global shares gapped down to $335.14 after Barclays downgraded the stock and lowered its price target from $359.00 to $352.00.
• Insider selling has seen significant activity, with CEO Brian Armstrong selling over $121 million worth of shares, representing a 99.84% reduction in his ownership.
• Analysts largely rate Coinbase Global as a "hold," with a consensus price target of $344.55, while troubling earnings reports show a revenue miss compared to estimates.

Shares of Coinbase Global, Inc. (NASDAQ:COIN) gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $377.76, but opened at $335.14. Coinbase Global shares last traded at $319.74, with a volume of 9,112,417 shares changing hands.

The cryptocurrency exchange reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.91 by ($0.79). The company had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.68 billion. Coinbase Global had a net margin of 40.87% and a return on equity of 16.95%. The company's quarterly revenue was up 3.3% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.14 EPS.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Cantor Fitzgerald started coverage on Coinbase Global in a research report on Tuesday, April 8th. They issued an "overweight" rating and a $245.00 target price for the company. JPMorgan Chase & Co. reduced their price objective on Coinbase Global from $276.00 to $215.00 and set a "neutral" rating for the company in a research note on Friday, May 9th. Barclays decreased their price objective on Coinbase Global from $359.00 to $352.00 and set an "equal weight" rating for the company in a report on Friday. William Blair assumed coverage on shares of Coinbase Global in a research report on Wednesday, June 11th. They issued an "outperform" rating for the company. Finally, Benchmark raised their price objective on shares of Coinbase Global from $301.00 to $421.00 and gave the stock a "buy" rating in a research report on Monday, June 23rd. One research analyst has rated the stock with a sell rating, twelve have assigned a hold rating and thirteen have issued a buy rating to the stock. Based on data from MarketBeat, Coinbase Global presently has an average rating of "Hold" and an average price target of $344.55.

Insider Buying and Selling at Coinbase Global

In related news, CEO Brian Armstrong sold 198,300 shares of the company's stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $397.87, for a total value of $78,897,621.00. Following the sale, the chief executive officer owned 526 shares of the company's stock, valued at approximately $209,279.62. This represents a 99.74% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Paul Grewal sold 10,000 shares of the business's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $348.64, for a total transaction of $3,486,400.00. Following the completion of the transaction, the insider directly owned 82,328 shares of the company's stock, valued at $28,702,833.92. The trade was a 10.83% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,208,340 shares of company stock valued at $439,997,456 over the last quarter. Corporate insiders own 17.65% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of COIN. Arrowstreet Capital Limited Partnership boosted its holdings in Coinbase Global by 51.0% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 72,681 shares of the cryptocurrency exchange's stock valued at $18,047,000 after acquiring an additional 24,536 shares during the last quarter. CIBC Private Wealth Group LLC lifted its holdings in shares of Coinbase Global by 131.5% during the 4th quarter. CIBC Private Wealth Group LLC now owns 5,512 shares of the cryptocurrency exchange's stock valued at $1,433,000 after acquiring an additional 3,131 shares in the last quarter. O Shaughnessy Asset Management LLC increased its holdings in Coinbase Global by 41.1% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 11,850 shares of the cryptocurrency exchange's stock valued at $2,942,000 after purchasing an additional 3,449 shares in the last quarter. Wellington Management Group LLP lifted its stake in shares of Coinbase Global by 1,159.9% during the fourth quarter. Wellington Management Group LLP now owns 328,684 shares of the cryptocurrency exchange's stock worth $81,612,000 after purchasing an additional 302,595 shares in the last quarter. Finally, Franklin Resources Inc. boosted its position in shares of Coinbase Global by 614.8% in the fourth quarter. Franklin Resources Inc. now owns 343,348 shares of the cryptocurrency exchange's stock worth $85,253,000 after buying an additional 295,313 shares during the period. 68.84% of the stock is currently owned by institutional investors and hedge funds.

Coinbase Global Trading Down 16.7%

The firm has a market capitalization of $79.89 billion, a PE ratio of 30.43, a P/E/G ratio of 21.92 and a beta of 3.70. The firm has a fifty day moving average of $327.63 and a 200 day moving average of $259.53. The company has a debt-to-equity ratio of 0.40, a quick ratio of 2.52 and a current ratio of 2.52.

Coinbase Global Company Profile

Coinbase Global, Inc provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions.