BTGO (NYSE:BTGO) Shares Gap Down After Analyst Downgrade

Key Points

• BTGO shares fell sharply at the open, dropping from a $5.10 prior close to $4.66 after Rosenblatt cut its price target from $10 to $9, while keeping a Buy rating.
• Analyst views remain broadly positive: the consensus rating is “Moderate Buy” with an average target of $12.23, despite several firms recently lowering their targets.
• BitGo reported Q3 diluted EPS of $0.36, beating expectations for a $0.04 loss; however, reported revenue of $2.85 billion was described as down about 51% year over year, tempering the earnings beat.

Shares of BTGO (NYSE:BTGO - Get Free Report) gapped down prior to trading on Tuesday after Rosenblatt Securities lowered their price target on the stock from $10.00 to $9.00. The stock had previously closed at $5.10, but opened at $4.66. Rosenblatt Securities currently has a buy rating on the stock. BTGO shares last traded at $4.7050, with a volume of 139,407 shares changing hands.

Other analysts have also recently issued reports about the company. Mizuho set a $9.00 price objective on BTGO in a research report on Tuesday. Cantor Fitzgerald dropped their target price on BTGO from $15.00 to $13.00 and set an "overweight" rating on the stock in a report on Monday, August 17th. Weiss Ratings restated a "sell (d)" rating on shares of BTGO in a research note on Friday, October 9th. Wells Fargo & Company decreased their price target on BTGO from $13.00 to $11.00 and set an "overweight" rating for the company in a report on Thursday, August 13th. Finally, Citigroup lowered their price objective on shares of BTGO from $17.00 to $10.00 and set a "buy" rating on the stock in a research report on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $12.23.

BTGO News Roundup

Here are the key news stories impacting BTGO this week:

• Positive Sentiment: BitGo reported Q3 diluted EPS of $0.36, beating the consensus estimate of a $0.04 loss. BitGo earnings results
• Neutral Sentiment: Canaccord Genuity cut its price target from $15 to $12, while Rosenblatt lowered its target from $10 to $9; both firms maintained Buy ratings. The lower targets are a caution, though both remain above the recently cited $4.77 share price. Canaccord Genuity ratings Rosenblatt Securities ratings
• Neutral Sentiment: BitGo is promoting its goStocks initiative and integrating NYDIG’s institutional trading business, which could support longer-term growth, but the provided coverage offers limited detail on near-term financial impact. BitGo goStocks and NYDIG integration
• Negative Sentiment: Q3 revenue was about $2.85 billion, but reports highlighted a roughly 51% year-over-year drop and characterized revenue as a miss. The steep decline tempers the EPS beat and raises questions about growth. BitGo Q3 profit and revenue report
• Negative Sentiment: A third-party report noted that disclosed insider trades over the past six months were sales, with no purchases—a potential confidence concern for investors. BitGo Q3 earnings and insider activity

Institutional Trading of BTGO

A number of institutional investors have recently modified their holdings of the business. Stone Ridge Holdings Group LP acquired a new stake in BTGO in the third quarter valued at $43,908,000. Tidal Investments LLC purchased a new position in shares of BTGO in the 2nd quarter valued at about $10,327,000. ParaFi Capital LP purchased a new position in shares of BTGO in the 2nd quarter valued at about $1,939,000. State Street Corp acquired a new stake in shares of BTGO in the second quarter valued at about $1,202,000. Finally, Penn Capital Management Company LLC acquired a new stake in shares of BTGO in the third quarter valued at about $976,000.

BTGO Price Performance

The stock has a market cap of $530.74 million and a price-to-earnings ratio of -3.18. The company's 50 day moving average is $6.69 and its 200 day moving average is $7.81.

BTGO (NYSE:BTGO - Get Free Report) last issued its earnings results on Monday, November 9th. The company reported $0.36 earnings per share for the quarter, topping the consensus estimate of ($0.04) by $0.40. The company had revenue of $2.85 billion for the quarter. Sell-side analysts predict that BTGO will post -0.27 earnings per share for the current year.

About BTGO

BitGo Holdings, Inc NYSE: BTGO is a financial technology company focused on digital asset infrastructure and services. The company provides institutional-grade solutions designed to help businesses securely custody, manage, trade and settle cryptocurrencies and other blockchain-based assets.

Its offerings include qualified digital asset custody, multi-signature wallets, portfolio and treasury management, trading and liquidity services, staking, lending and settlement solutions. BitGo also provides technology and infrastructure that supports cryptocurrency exchanges, financial institutions, investment firms, token issuers and other organizations participating in the digital asset ecosystem.

Founded in 2013, BitGo serves institutional clients in the United States and international markets.

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