Coastal Financial (NASDAQ:CCB) Hits New 1-Year Low - Here's Why

Key Points

• Coastal Financial shares hit a new 52-week low, falling to $35.56 and last trading at $37.54 versus a prior close of $44.82.
• Analysts sharply reduced their price targets following the company’s quarterly results, while ratings became more mixed; MarketBeat’s consensus remains “Hold” with a $91.33 target.
• The company reported a steep quarterly EPS loss of $2.76, missing the $1.01 consensus estimate, despite revenue of $178.07 million exceeding expectations. Meanwhile, insiders bought more than 25,000 shares over 90 days, and insiders own 13.49% of the stock.

Coastal Financial Corporation (NASDAQ:CCB - Get Free Report) hit a new 52-week low on Tuesday. The stock traded as low as $35.56 and last traded at $37.54, with a volume of 776324 shares trading hands. The stock had previously closed at $44.82.

Analysts Set New Price Targets

A number of research firms have issued reports on CCB. TD Cowen cut their price target on Coastal Financial from $110.00 to $47.00 and set a "buy" rating for the company in a research note on Friday, July 31st. Keefe, Bruyette & Woods lowered their price objective on Coastal Financial from $95.00 to $53.00 and set an "outperform" rating for the company in a research note on Friday, July 31st. Weiss Ratings lowered Coastal Financial from a "hold (c)" rating to a "sell (d)" rating in a report on Tuesday, August 11th. Raymond James Financial cut Coastal Financial from a "strong-buy" rating to an "outperform" rating and set a $50.00 target price on the stock. in a research report on Friday, July 31st. Finally, Zacks Research downgraded Coastal Financial from a "hold" rating to a "strong sell" rating in a report on Tuesday, August 4th. Five analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Coastal Financial has an average rating of "Hold" and a consensus target price of $91.33.

Coastal Financial Price Performance

The company has a market capitalization of $573.99 million, a P/E ratio of -134.07 and a beta of 0.78. The business's 50-day moving average is $50.41 and its two-hundred day moving average is $66.85. The company has a quick ratio of 1.03, a current ratio of 1.05 and a debt-to-equity ratio of 0.10.

Coastal Financial (NASDAQ:CCB - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported ($2.76) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.01 by ($3.77). Coastal Financial had a negative return on equity of 0.80% and a negative net margin of 0.53%.The firm had revenue of $178.07 million during the quarter, compared to the consensus estimate of $148.50 million. As a group, analysts predict that Coastal Financial Corporation will post 0.85 earnings per share for the current year.

Insider Activity at Coastal Financial

In other Coastal Financial news, Director Steven Hovde purchased 10,000 shares of the firm's stock in a transaction that occurred on Thursday, August 6th. The stock was bought at an average cost of $43.83 per share, with a total value of $438,300.00. Following the completion of the transaction, the director owned 26,500 shares of the company's stock, valued at $1,161,495. The trade was a 60.61% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Eric Sprink purchased 10,000 shares of the company's stock in a transaction that occurred on Thursday, August 6th. The shares were acquired at an average price of $44.45 per share, for a total transaction of $444,500.00. Following the completion of the acquisition, the chief executive officer directly owned 173,238 shares of the company's stock, valued at $7,700,429.10. This trade represents a 6.13% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders bought 25,290 shares of company stock valued at $1,115,894. 13.49% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Coastal Financial

Hedge funds have recently made changes to their positions in the business. ProShare Advisors LLC grew its holdings in Coastal Financial by 7.0% during the 4th quarter. ProShare Advisors LLC now owns 2,360 shares of the company's stock valued at $270,000 after buying an additional 155 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of Coastal Financial by 129.0% in the fourth quarter. EverSource Wealth Advisors LLC now owns 300 shares of the company's stock worth $34,000 after buying an additional 169 shares in the last quarter. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Coastal Financial in the fourth quarter worth about $50,000. First Bank & Trust boosted its position in shares of Coastal Financial by 5.5% in the second quarter. First Bank & Trust now owns 12,012 shares of the company's stock valued at $931,000 after acquiring an additional 630 shares during the period. Finally, Jacobs Asset Management LLC boosted its position in shares of Coastal Financial by 0.8% in the first quarter. Jacobs Asset Management LLC now owns 89,146 shares of the company's stock valued at $6,784,000 after acquiring an additional 697 shares during the period. 59.24% of the stock is currently owned by institutional investors.

About Coastal Financial

Coastal Financial Corporation is the bank holding company for Coastal Community Bank, a community bank headquartered in Everett, Washington. Founded in 1997, the bank serves consumers, businesses and nonprofit organizations in communities across the Puget Sound region and provides relationship-based banking through branches and digital channels.

Coastal Community Bank offers deposit accounts, consumer and commercial loans, mortgage lending, small business and SBA lending, cash-management services, online and mobile banking, and other treasury-management solutions.

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