BTGO (NYSE:BTGO) Stock Price Down 11.1% - Should You Sell?

Key Points

• BTGO shares fell 11.1% to approximately $6.23, with trading volume 49% below the average. The decline followed a quarterly EPS miss, as the company reported a $0.16 loss per share versus the expected $0.03 loss.
• Analysts have reduced their price targets but remain broadly positive, with a consensus “Moderate Buy” rating and an average target of $12.77—more than double the recent share price.
• The company authorized a $50 million share buyback, while institutional investors established new positions. Recent insider stock sales were made to cover tax obligations related to vested equity awards.

BTGO (NYSE:BTGO - Get Free Report) traded down 11.1% during trading on Wednesday. The company traded as low as $6.22 and last traded at $6.2250. 670,316 shares traded hands during mid-day trading, a decline of 49% from the average daily volume of 1,316,181 shares. The stock had previously closed at $7.00.

Analysts Set New Price Targets

BTGO has been the topic of several analyst reports. Wedbush lowered their price target on shares of BTGO from $15.00 to $8.00 and set an "outperform" rating on the stock in a report on Thursday, August 13th. Citigroup decreased their price target on BTGO from $17.00 to $10.00 and set a "buy" rating on the stock in a research report on Friday, August 14th. Wells Fargo & Company lowered their price objective on shares of BTGO from $13.00 to $11.00 and set an "overweight" rating for the company in a research report on Thursday, August 13th. Rosenblatt Securities dropped their target price on BTGO from $15.00 to $10.00 and set a "buy" rating for the company in a research report on Thursday, August 13th. Finally, Mizuho reduced their target price on shares of BTGO from $14.00 to $11.00 and set an "outperform" rating on the stock in a research note on Friday, August 14th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $12.77.

BTGO Trading Down 10.7%

The stock has a 50 day moving average price of $6.86 and a two-hundred day moving average price of $7.12. The company has a market cap of $735.04 million and a price-to-earnings ratio of -4.31.

BTGO (NYSE:BTGO - Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The company reported ($0.16) EPS for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.13). The company had revenue of $4.33 billion during the quarter. On average, equities analysts forecast that BTGO will post -0.27 EPS for the current fiscal year.

BTGO declared that its Board of Directors has initiated a share buyback program on Wednesday, June 17th that authorizes the company to buy back $50.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 7.9% of its shares through open market purchases. Stock buyback programs are often a sign that the company's management believes its stock is undervalued.

Insider Transactions at BTGO

In other news, CFO Edward Reginelli sold 9,021 shares of the business's stock in a transaction dated Friday, July 24th. The stock was sold at an average price of $4.89, for a total transaction of $44,112.69. Following the completion of the transaction, the chief financial officer directly owned 582,489 shares in the company, valued at approximately $2,848,371.21. The trade was a 1.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Michael Belshe sold 38,691 shares of the business's stock in a transaction dated Friday, July 24th. The stock was sold at an average price of $4.89, for a total value of $189,198.99. Following the transaction, the chief executive officer owned 798,464 shares of the company's stock, valued at $3,904,488.96. The trade was a 4.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 48,134 shares of company stock worth $235,430.

Institutional Trading of BTGO

Large investors have recently made changes to their positions in the company. State Street Corp acquired a new position in BTGO in the second quarter valued at about $1,202,000. ParaFi Capital LP bought a new stake in BTGO during the 2nd quarter worth approximately $1,939,000. Finally, Tidal Investments LLC acquired a new stake in BTGO during the 2nd quarter worth approximately $10,327,000.

About BTGO

BitGo Holdings, Inc NYSE: BTGO is a digital asset infrastructure company that provides custody, security, trading and financial services for institutional participants in the cryptocurrency market. Its platform is designed to help businesses securely store, manage and transact in digital assets.

The company's services include institutional cryptocurrency custody, hot and cold wallet solutions, settlement, staking, lending and trading-related services. BitGo also provides technology and operational infrastructure intended to support asset managers, exchanges, financial institutions, corporations and other organizations involved with digital assets.

BitGo was founded in 2013 by Mike Belshe and Ben Davenport and is headquartered in Palo Alto, California.

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