SBI Holdings USA Inc. Makes New Investment in Circle Internet Group, Inc. $CRCL

Key Points

• SBI Holdings USA acquired 1.614 million Circle Internet Group shares in the second quarter, valued at approximately $101.1 million and representing a 0.65% stake. The investment now accounts for the entirety of SBI Holdings USA’s reported portfolio.
• Circle’s stock was recently trading at $71.79, down 4.8%, after the company reported quarterly EPS of $0.18—below the $0.26 consensus estimate—despite $701.3 million in revenue, up 6.6% year over year.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $97.12. Meanwhile, insiders sold more than 2.06 million shares worth approximately $159.9 million over the past 90 days, largely under pre-arranged plans to cover tax obligations.

SBI Holdings USA Inc. bought a new stake in Circle Internet Group, Inc. (NYSE:CRCL - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 1,614,000 shares of the company's stock, valued at approximately $101,084,820,000. Circle Internet Group comprises 100.0% of SBI Holdings USA Inc.'s investment portfolio, making the stock its biggest position. SBI Holdings USA Inc. owned 0.65% of Circle Internet Group at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of CRCL. General Catalyst Group Management LLC purchased a new stake in shares of Circle Internet Group during the second quarter worth approximately $3,647,694,000. IDG Accel China Capital II Associates L.P. acquired a new position in Circle Internet Group in the 4th quarter valued at $554,792,000. Accel XI Associates L.L.C. acquired a new position in Circle Internet Group in the 4th quarter valued at $513,844,000. Southpoint Capital Advisors LP increased its stake in Circle Internet Group by 175.0% in the 1st quarter. Southpoint Capital Advisors LP now owns 3,300,000 shares of the company's stock valued at $314,853,000 after buying an additional 2,100,000 shares during the period. Finally, Renaissance Technologies LLC purchased a new position in Circle Internet Group during the 4th quarter worth $163,948,000.

Circle Internet Group Stock Down 4.8%

NYSE:CRCL opened at $71.79 on Friday. The firm's fifty day simple moving average is $69.34 and its 200-day simple moving average is $85.92. The stock has a market cap of $18.22 billion, a PE ratio of 49.17 and a beta of 0.23. Circle Internet Group, Inc. has a fifty-two week low of $49.90 and a fifty-two week high of $159.47.

Circle Internet Group (NYSE:CRCL - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.18 EPS for the quarter, missing the consensus estimate of $0.26 by ($0.08). The company had revenue of $701.32 million during the quarter. Circle Internet Group had a net margin of 15.53% and a return on equity of 13.58%. The firm's revenue for the quarter was up 6.6% on a year-over-year basis. During the same period last year, the business earned ($4.48) EPS. Equities analysts anticipate that Circle Internet Group, Inc. will post 1.04 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Nikhil Chandhok sold 489,737 shares of the company's stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $72.37, for a total value of $35,442,266.69. Following the sale, the insider owned 521,809 shares in the company, valued at $37,763,317.33. This represents a 48.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Patrick Sean Neville sold 1,034,396 shares of the firm's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $82.87, for a total value of $85,720,396.52. Following the completion of the transaction, the director directly owned 2,018 shares of the company's stock, valued at $167,231.66. The trade was a 99.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 2,062,639 shares of company stock valued at $159,922,690 in the last 90 days. 10.85% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several brokerages have recently weighed in on CRCL. Compass Point set a $62.00 target price on shares of Circle Internet Group in a report on Wednesday, July 15th. Sanford C. Bernstein reissued an "outperform" rating and set a $140.00 price target on shares of Circle Internet Group in a report on Wednesday, July 29th. TD Cowen raised their price objective on shares of Circle Internet Group from $82.00 to $87.00 and gave the company a "buy" rating in a research report on Wednesday. Wall Street Zen cut Circle Internet Group from a "sell" rating to a "strong sell" rating in a research report on Saturday, August 1st. Finally, Raymond James Financial began coverage on Circle Internet Group in a research note on Tuesday, July 21st. They set a "market perform" rating for the company. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, thirteen have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $97.12.

About Circle Internet Group

Circle Internet Group NYSE: CRCL is a financial technology company that builds infrastructure to enable businesses and developers to use and move money on public blockchains. Co-founded by Jeremy Allaire and Sean Neville, the company is best known as a principal issuer and steward of USDC, a dollar-pegged stablecoin developed through the CENTRE Consortium, which Circle co-founded with Coinbase. Jeremy Allaire serves as CEO and has been a visible leader in the company’s strategy and public engagement around digital currency and payments innovation.

Circle’s core products and services center on digital currency issuance and programmable payments.

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