Coinbase Global (NASDAQ:COIN) Shares Gap Up - Should You Buy?

Key Points

• Coinbase shares gapped up after opening well above the prior close, helped by positive sentiment around crypto-related regulatory developments and broader optimism for the exchange.
• Several analysts remain split on the stock: Citizens JMP lifted its target to $325 with an outperform rating, while Barclays cut its target to $99 and kept an underweight rating. Overall, MarketBeat shows an average rating of Hold with a target price of $251.79.
• Despite bullish news, Coinbase still faces headwinds from weak crypto markets and recent disappointing fundamentals, including a quarterly EPS miss and revenue that fell 30.5% year over year.

Shares of Coinbase Global, Inc. (NASDAQ:COIN) gapped up prior to trading on Friday . The stock had previously closed at $158.44, but opened at $166.67. Coinbase Global shares last traded at $161.7650, with a volume of 1,430,798 shares traded.

Key Stories Impacting Coinbase Global

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

• Positive Sentiment: Coinbase is trading higher in sympathy with Circle after Circle received OCC approval to open a national trust bank, a sign of improving regulatory acceptance for crypto-related financial infrastructure. Coinbase Stock Trades Higher After Circle Receives OCC Approval to Open National Trust Bank
• Positive Sentiment: Citizens JMP raised its price target on Coinbase to $325 and kept an outperform rating, reinforcing the view that the stock still has significant upside if crypto trading volumes and sentiment improve.
• Positive Sentiment: Coinbase’s UK authorization to offer investment services supports its “everything exchange” strategy and could expand the company’s long-term growth runway by adding equities and derivatives alongside crypto. Coinbase UK License Marks Major Step Toward Bringing ‘Everything Exchange’ to Life
• Neutral Sentiment: Chief Legal Officer Paul Grewal is stepping down after six years and will transition to an advisory role; while the move follows major regulatory wins, it creates some leadership-transition uncertainty. Coinbase's top attorney who has led crypto's Washington fight to step down
• Negative Sentiment: Barclays cut its price target on Coinbase to $99 and maintained an underweight rating, signaling continued skepticism about valuation and near-term fundamentals.
• Negative Sentiment: Recent crypto market weakness tied to broader geopolitical risk has weighed on Bitcoin and other digital assets, which can pressure Coinbase because its revenue is closely tied to trading activity. Bitcoin, Ethereum, XRP, Dogecoin Slide as Trump Warns Iran Strikes Could Get 'Much Worse'

Analyst Ratings Changes

Several research firms recently commented on COIN. Citizens Jmp reduced their target price on Coinbase Global from $355.00 to $325.00 and set a "market outperform" rating for the company in a research report on Thursday. Piper Sandler dropped their price target on Coinbase Global from $180.00 to $170.00 and set a "neutral" rating for the company in a research report on Friday, May 8th. President Capital boosted their price objective on Coinbase Global from $236.00 to $264.00 and gave the stock a "buy" rating in a report on Tuesday, May 12th. Wolfe Research set a $325.00 price objective on shares of Coinbase Global in a research report on Thursday. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $208.00 target price on shares of Coinbase Global in a research note on Wednesday, June 17th. Eighteen analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Coinbase Global currently has an average rating of "Hold" and an average target price of $251.79.

Coinbase Global Stock Up 1.0%

The stock has a 50-day simple moving average of $174.34 and a two-hundred day simple moving average of $190.11. The company has a quick ratio of 2.14, a current ratio of 2.14 and a debt-to-equity ratio of 0.44. The firm has a market cap of $42.14 billion, a PE ratio of 60.21, a P/E/G ratio of 5.63 and a beta of 3.35.

Coinbase Global (NASDAQ:COIN - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The cryptocurrency exchange reported ($1.49) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.06 by ($1.55). The firm had revenue of $1.41 billion during the quarter, compared to analysts' expectations of $1.49 billion. Coinbase Global had a return on equity of 4.16% and a net margin of 12.20%.Coinbase Global's revenue for the quarter was down 30.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.24 earnings per share. Analysts expect that Coinbase Global, Inc. will post 1.74 earnings per share for the current year.

Insiders Place Their Bets

In other Coinbase Global news, CFO Alesia J. Haas sold 10,020 shares of Coinbase Global stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $200.00, for a total transaction of $2,004,000.00. Following the transaction, the chief financial officer directly owned 377,201 shares of the company's stock, valued at approximately $75,440,200. This trade represents a 2.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Lawrence J. Brock sold 6,616 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $189.01, for a total transaction of $1,250,490.16. Following the completion of the sale, the insider owned 517 shares of the company's stock, valued at approximately $97,718.17. The trade was a 92.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 40,647 shares of company stock valued at $7,331,841 over the last 90 days. Company insiders own 16.66% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. MV Capital Management Inc. bought a new stake in shares of Coinbase Global in the 4th quarter valued at about $27,000. Palisade Asset Management LLC purchased a new position in Coinbase Global during the 3rd quarter valued at about $29,000. Osbon Capital Management LLC purchased a new position in Coinbase Global during the 4th quarter valued at about $30,000. Glen Eagle Advisors LLC raised its position in Coinbase Global by 101.1% during the 1st quarter. Glen Eagle Advisors LLC now owns 175 shares of the cryptocurrency exchange's stock valued at $31,000 after purchasing an additional 88 shares during the last quarter. Finally, Archer Investment Corp lifted its holdings in Coinbase Global by 546.4% in the 1st quarter. Archer Investment Corp now owns 181 shares of the cryptocurrency exchange's stock worth $32,000 after buying an additional 153 shares during the period. 68.84% of the stock is owned by institutional investors.

Coinbase Global Company Profile

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.

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