Coinbase Global (NASDAQ:COIN) Trading Down 5% After Analyst Downgrade

Key Points

• Coinbase Global's stock fell 5% after Keefe, Bruyette & Woods downgraded its price target from $355 to $335, with the stock trading at $302.33.
• Multiple analysts have issued varying ratings and price targets on Coinbase, with a consensus rating of "Hold" and an average price target of $352.18.
• Coinbase recently reported earnings of $0.12 per share, significantly missing expectations of $0.91, while revenue reached $1.50 billion, below the forecast of $1.68 billion.

Coinbase Global, Inc. (NASDAQ:COIN)'s stock price dropped 5% during mid-day trading on Tuesday after Keefe, Bruyette & Woods lowered their price target on the stock from $355.00 to $335.00. Keefe, Bruyette & Woods currently has a market perform rating on the stock. Coinbase Global traded as low as $300.10 and last traded at $302.33. Approximately 6,148,938 shares were traded during trading, a decline of 47% from the average daily volume of 11,515,786 shares. The stock had previously closed at $318.17.

Other equities analysts also recently issued reports about the company. JPMorgan Chase & Co. reduced their price target on Coinbase Global from $276.00 to $215.00 and set a "neutral" rating on the stock in a research report on Friday, May 9th. William Blair started coverage on Coinbase Global in a research report on Wednesday, June 11th. They set an "outperform" rating on the stock. Jefferies Financial Group upped their price target on Coinbase Global from $260.00 to $405.00 and gave the stock a "hold" rating in a research report on Tuesday, July 29th. Compass Point reaffirmed a "sell" rating and set a $248.00 price target (down from $330.00) on shares of Coinbase Global in a research report on Monday. Finally, China Renaissance started coverage on Coinbase Global in a research report on Tuesday, June 17th. They set a "buy" rating and a $353.30 price target on the stock. Two analysts have rated the stock with a sell rating, eleven have assigned a hold rating and thirteen have assigned a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $352.18.

Insiders Place Their Bets

In other Coinbase Global news, Director Frederick Ernest Ehrsam III sold 30,167 shares of the stock in a transaction on Tuesday, May 13th. The shares were sold at an average price of $252.68, for a total transaction of $7,622,597.56. Following the sale, the director directly owned 10,417 shares of the company's stock, valued at approximately $2,632,167.56. This represents a 74.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Brian Armstrong sold 336,265 shares of the stock in a transaction dated Wednesday, June 25th. The stock was sold at an average price of $362.61, for a total transaction of $121,933,051.65. Following the completion of the sale, the chief executive officer directly owned 526 shares in the company, valued at approximately $190,732.86. This trade represents a 99.84% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,183,340 shares of company stock worth $434,983,956 over the last quarter. 23.43% of the stock is currently owned by insiders.

Institutional Trading of Coinbase Global

A number of institutional investors have recently made changes to their positions in the stock. Cullen Frost Bankers Inc. acquired a new position in shares of Coinbase Global in the second quarter worth about $30,000. City State Bank acquired a new stake in shares of Coinbase Global during the second quarter worth approximately $33,000. Mascagni Wealth Management Inc. acquired a new stake in shares of Coinbase Global during the fourth quarter worth approximately $25,000. Copia Wealth Management acquired a new stake in shares of Coinbase Global during the fourth quarter worth approximately $26,000. Finally, Mpwm Advisory Solutions LLC acquired a new stake in shares of Coinbase Global during the fourth quarter worth approximately $35,000. 68.84% of the stock is owned by institutional investors and hedge funds.

Coinbase Global Stock Performance

The company has a debt-to-equity ratio of 0.25, a current ratio of 2.12 and a quick ratio of 2.13. The firm has a market capitalization of $76.47 billion, a price-to-earnings ratio of 29.27, a PEG ratio of 21.92 and a beta of 3.70. The firm's fifty day moving average is $328.73 and its 200 day moving average is $259.54.

Coinbase Global (NASDAQ:COIN - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The cryptocurrency exchange reported $0.12 earnings per share for the quarter, missing the consensus estimate of $0.91 by ($0.79). The business had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.68 billion. Coinbase Global had a net margin of 40.87% and a return on equity of 16.02%. Coinbase Global's revenue was up 3.3% compared to the same quarter last year. During the same period in the previous year, the business posted $0.14 EPS. On average, analysts predict that Coinbase Global, Inc. will post 7.22 EPS for the current fiscal year.

About Coinbase Global

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.

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