Coastal Financial (NASDAQ:CCB) Stock Price Down 16.8% - Here's Why

Key Points

• Coastal Financial shares fell 16.8% to about $37.27, with trading volume down 65% from its average.
• The decline followed a weak quarterly report: the company posted a loss of $2.76 per share versus analyst expectations for $1.01 in earnings, despite revenue of $178.07 million exceeding estimates.
• Analyst sentiment has deteriorated, with multiple target-price cuts and downgrades leaving the stock with a consensus “Hold” rating; however, insiders purchased roughly $1.12 million of shares over the past 90 days.

Coastal Financial Corporation (NASDAQ:CCB - Get Free Report)'s stock price fell 16.8% during mid-day trading on Monday. The company traded as low as $37.03 and last traded at $37.2720. 64,712 shares traded hands during trading, a decline of 65% from the average daily volume of 185,552 shares. The stock had previously closed at $44.82.

Analyst Ratings Changes

Several brokerages have recently issued reports on CCB. Weiss Ratings cut shares of Coastal Financial from a "hold (c)" rating to a "sell (d)" rating in a research report on Tuesday, August 11th. Zacks Research downgraded shares of Coastal Financial from a "hold" rating to a "strong sell" rating in a research note on Tuesday, August 4th. Keefe, Bruyette & Woods reduced their target price on shares of Coastal Financial from $95.00 to $53.00 and set an "outperform" rating on the stock in a report on Friday, July 31st. TD Cowen decreased their price target on shares of Coastal Financial from $110.00 to $47.00 and set a "buy" rating for the company in a research report on Friday, July 31st. Finally, Raymond James Financial downgraded shares of Coastal Financial from a "strong-buy" rating to an "outperform" rating and set a $50.00 price target for the company. in a research note on Friday, July 31st. Five investment analysts have rated the stock with a Buy rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Coastal Financial presently has a consensus rating of "Hold" and an average price target of $91.33.

Coastal Financial Trading Down 18.2%

The firm has a market cap of $560.91 million, a price-to-earnings ratio of -130.44 and a beta of 0.78. The business has a fifty day moving average of $51.22 and a two-hundred day moving average of $67.13. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.03 and a current ratio of 1.05.

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 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 business had revenue of $178.07 million for the quarter, compared to analysts' expectations of $148.50 million. As a group, equities analysts expect that Coastal Financial Corporation will post 0.85 earnings per share for the current fiscal year.

Insider Activity at Coastal Financial

In related news, CEO Eric M. Sprink bought 10,000 shares of the company's stock in a transaction dated Thursday, August 6th. The stock was bought at an average price of $44.45 per share, with a total value of $444,500.00. Following the transaction, the chief executive officer owned 173,238 shares of the company's stock, valued at approximately $7,700,429.10. This trade represents a 6.13% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Steven D. Hovde purchased 10,000 shares of the company's stock in a transaction that occurred on Thursday, August 6th. The shares were purchased at an average cost of $43.83 per share, for a total transaction of $438,300.00. Following the completion of the transaction, the director owned 26,500 shares in the company, valued at approximately $1,161,495. This represents a 60.61% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired 25,290 shares of company stock valued at $1,115,894 in the last ninety days. 13.49% of the stock is owned by corporate insiders.

Institutional Trading of Coastal Financial

Several institutional investors have recently modified their holdings of the company. EverSource Wealth Advisors LLC boosted its stake in shares of Coastal Financial by 129.0% during the 4th quarter. EverSource Wealth Advisors LLC now owns 300 shares of the company's stock worth $34,000 after acquiring an additional 169 shares in the last quarter. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Coastal Financial during the fourth quarter valued at $50,000. Entropy Technologies LP purchased a new stake in shares of Coastal Financial during the first quarter valued at $201,000. Jefferies Financial Group Inc. acquired a new position in shares of Coastal Financial in the 4th quarter valued at $234,000. Finally, WINTON GROUP Ltd purchased a new position in Coastal Financial in the 2nd quarter worth about $240,000. Institutional investors and hedge funds own 59.24% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.