Circle Internet Group (NYSE:CRCL) Shares Gap Down - Time to Sell?

Key Points

• Circle shares fell sharply: CRCL opened at $92.30 versus a prior close of $97.42 and later traded near $89.27, an 8% decline. The company has a $22.75 billion market capitalization and trades at a P/E ratio of 61.32.
• Analyst sentiment is mixed: Circle has an average “Hold” rating and a consensus price target of $99.67, although several analysts recently cut their targets, including Canaccord Genuity to $130 and Robert W. Baird to $100.
• Recent results missed expectations and insiders sold shares: Circle reported quarterly EPS of $0.18, below the $0.26 consensus, despite revenue rising 6.6% year over year to $701.32 million. Insiders sold approximately 1.02 million shares worth $75.7 million over the past 90 days, largely through pre-arranged plans to cover tax obligations.

Circle Internet Group, Inc. (NYSE:CRCL - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $97.42, but opened at $92.30. Circle Internet Group shares last traded at $89.2690, with a volume of 3,455,887 shares trading hands.

Analyst Ratings Changes

CRCL has been the topic of a number of recent analyst reports. Raymond James Financial assumed coverage on shares of Circle Internet Group in a report on Tuesday, July 21st. They set a "market perform" rating on the stock. Canaccord Genuity Group decreased their price objective on shares of Circle Internet Group from $160.00 to $130.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Keefe, Bruyette & Woods assumed coverage on shares of Circle Internet Group in a research report on Tuesday, September 8th. They issued a "market perform" rating and a $105.00 price objective for the company. Seaport Research Partners set a $100.00 target price on shares of Circle Internet Group in a research note on Monday, August 17th. Finally, Robert W. Baird dropped their target price on Circle Internet Group from $138.00 to $100.00 and set an "outperform" rating on the stock in a research report on Monday, July 13th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, twelve have issued a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, Circle Internet Group has an average rating of "Hold" and an average price target of $99.67.

Circle Internet Group Trading Down 8.0%

The business has a 50-day moving average price of $75.79 and a 200-day moving average price of $90.38. The stock has a market cap of $22.75 billion, a PE ratio of 61.32 and a beta of 0.59.

Circle Internet Group (NYSE:CRCL - Get Free Report) last issued its quarterly earnings results 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 return on equity of 13.58% and a net margin of 15.53%.The business's quarterly revenue was up 6.6% compared to the same quarter last year. During the same period in the previous year, the firm posted ($4.48) earnings per share. Equities analysts expect that Circle Internet Group, Inc. will post 1.05 earnings per share for the current year.

Insider Buying and Selling at Circle Internet Group

In other news, CFO Jeremy Fox-Geen sold 8,120 shares of the business's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $87.87, for a total transaction of $713,504.40. Following the completion of the sale, the chief financial officer owned 308,291 shares of the company's stock, valued at $27,089,530.17. The trade was a 2.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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, CAO Tamara Schulz sold 1,194 shares of the company's stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $87.87, for a total transaction of $104,916.78. Following the transaction, the chief accounting officer owned 96,473 shares of the company's stock, valued at approximately $8,477,082.51. This trade represents a 1.22% decrease in their position. 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. Over the last ninety days, insiders have sold 1,018,123 shares of company stock valued at $75,708,773. Corporate insiders own 10.85% of the company's stock.

Institutional Investors Weigh In On Circle Internet Group

Several large investors have recently bought and sold shares of CRCL. California State Teachers Retirement System boosted its stake in shares of Circle Internet Group by 222,662.5% in the second quarter. California State Teachers Retirement System now owns 13,871,418 shares of the company's stock worth $868,767,000 after acquiring an additional 13,865,191 shares during the last quarter. 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 lifted its holdings 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 purchasing an additional 2,100,000 shares in the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. lifted its holdings in Circle Internet Group by 13.3% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,917,764 shares of the company's stock valued at $278,384,000 after purchasing an additional 342,080 shares in the last quarter.

About Circle Internet Group

Circle Internet Group, Inc is a global financial technology company focused on digital currency and blockchain infrastructure. The company is best known as the issuer of USD Coin (USDC), a dollar-denominated stablecoin designed to maintain a consistent value and facilitate digital payments, trading, and transfers on blockchain networks. Circle also issues EURC, a euro-denominated stablecoin.

Circle provides products and services for businesses, financial institutions, developers, and digital-asset platforms.

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