Coastal Financial (NASDAQ:CCB) Stock Price Down 8.3% on Disappointing Earnings

Key Points

• Coastal Financial shares fell 8.3% after the company reported third-quarter EPS of $0.89, missing the $0.96 consensus estimate. The results also reflected continued profitability pressure, including a negative net margin and return on equity.
• Management identified growth in its CCBX fintech and banking-as-a-service program as the main earnings driver, while executive-cost reductions could support future profitability. However, the company faces additional uncertainty from allegations in a proposed securities class action involving credit-risk disclosures.
• Analyst sentiment is mixed, with recent downgrades and price-target cuts leaving the stock with a consensus “Hold” rating and an average target of $91.33. Insiders have purchased approximately $1.1 million of company stock over the past three months.

Shares of Coastal Financial Corporation (NASDAQ:CCB - Get Free Report) fell 8.3% during trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $43.19 and last traded at $43.2350. Approximately 79,358 shares changed hands during mid-day trading, a decline of 59% from the average daily volume of 192,765 shares. The stock had previously closed at $47.13.

The company reported $0.89 EPS for the quarter, missing the consensus estimate of $0.96 by ($0.07). Coastal Financial had a negative return on equity of 0.80% and a negative net margin of 0.53%.

Trending Headlines about Coastal Financial

Here are the key news stories impacting Coastal Financial this week:

• Positive Sentiment: Management characterized third-quarter 2026 results as strong, with growth in the CCBX program identified as the primary earnings driver. This suggests continued expansion in the company’s fintech and banking-as-a-service business. Coastal Financial Corporation Announces Third Quarter 2026 Results
• Positive Sentiment: Coastal Financial and Coastal Community Bank agreed to changes intended to reduce executive compensation and leadership-related costs. Lower overhead could support profitability over time. Coastal Financial Tightens Executive Pay and Leadership Costs
• Neutral Sentiment: The company released an investor presentation outlining a strategic shift. The presentation may help investors assess how management plans to rebalance the business following recent CCBX-related credit issues. Coastal Financial Details Strategic Shift in Investor Presentation
• Negative Sentiment: Third-quarter EPS was $0.89, below consensus estimates ranging from $0.96 to $0.99, although it was slightly above the $0.88 reported a year earlier. The miss, combined with a negative net margin and negative return on equity, highlights ongoing profitability pressure. Coastal Financial Q3 Earnings and Revenues Lag Estimates
• Negative Sentiment: Several law firms are promoting a securities class action alleging that Coastal Financial overstated credit-risk protections in its CCBX lending relationships. The claims center on a partner portfolio of roughly $500 million and could create legal costs, reputational risk and uncertainty; the allegations have not been proven. Investors have until December 1, 2026, to seek lead-plaintiff status. Coastal Financial Class Action Notice

Analyst Upgrades and Downgrades

A number of analysts have weighed in on CCB shares. Raymond James Financial cut shares of Coastal Financial from a "strong-buy" rating to an "outperform" rating and set a $50.00 target price on the stock. in a report on Friday, July 31st. Zacks Research downgraded shares of Coastal Financial from a "hold" rating to a "strong sell" rating in a research report on Tuesday, August 4th. Keefe, Bruyette & Woods decreased their price target on shares of Coastal Financial from $95.00 to $53.00 and set an "outperform" rating for the company in a report on Friday, July 31st. Weiss Ratings downgraded shares of Coastal Financial from a "hold (c)" rating to a "sell (d)" rating in a research report on Tuesday, August 11th. Finally, TD Cowen reaffirmed a "buy" rating on shares of Coastal Financial in a research report on Tuesday, September 29th. Five research analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $91.33.

Insider Activity at Coastal Financial

In related news, CEO Eric Sprink acquired 10,000 shares of Coastal Financial stock in a transaction that occurred on Thursday, August 6th. The stock was acquired at an average price of $44.45 per share, for a total transaction of $444,500.00. Following the transaction, 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Steven Hovde acquired 10,000 shares of Coastal Financial stock in a transaction that occurred on Thursday, August 6th. The shares were bought at an average price of $43.83 per share, with a total value of $438,300.00. Following the transaction, the director directly owned 26,500 shares in the company, valued at approximately $1,161,495. This trade represents a 60.61% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders purchased 25,290 shares of company stock worth $1,115,894. Company insiders own 13.49% of the company's stock.

Institutional Investors Weigh In On Coastal Financial

A number of hedge funds have recently added to or reduced their stakes in the stock. Versant Capital Management Inc raised its holdings in shares of Coastal Financial by 292.2% during the third quarter. Versant Capital Management Inc now owns 655 shares of the company's stock valued at $26,000 after buying an additional 488 shares during the last quarter. First Bank & Trust grew its holdings in Coastal Financial by 5.5% in the 2nd quarter. First Bank & Trust now owns 12,012 shares of the company's stock worth $931,000 after buying an additional 630 shares in the last quarter. Jacobs Asset Management LLC grew its holdings in Coastal Financial by 0.8% in the 1st quarter. Jacobs Asset Management LLC now owns 89,146 shares of the company's stock worth $6,784,000 after buying an additional 697 shares in the last quarter. Diversify Wealth Management LLC grew its holdings in Coastal Financial by 30.9% in the 1st quarter. Diversify Wealth Management LLC now owns 9,232 shares of the company's stock worth $699,000 after buying an additional 2,178 shares in the last quarter. Finally, Madrona Financial Services LLC increased its position in Coastal Financial by 49.8% in the 3rd quarter. Madrona Financial Services LLC now owns 7,290 shares of the company's stock valued at $291,000 after acquiring an additional 2,425 shares during the period. 59.24% of the stock is currently owned by institutional investors.

Coastal Financial Trading Down 9.1%

The company has a current ratio of 1.05, a quick ratio of 1.03 and a debt-to-equity ratio of 0.10. The stock has a market capitalization of $654.87 million, a price-to-earnings ratio of -152.96 and a beta of 0.86. The firm has a 50-day moving average of $44.71 and a 200 day moving average of $69.31.

About Coastal Financial

Coastal Financial Corporation is a bank holding company headquartered in Everett, Washington. Its principal subsidiary, Coastal Community Bank, provides banking services to individuals, families, and businesses in the Pacific Northwest, with a focus on communities in the Puget Sound region.

Coastal Community Bank offers consumer and commercial deposit accounts, residential and commercial real estate lending, business loans, lines of credit, treasury management, online and mobile banking, and other traditional banking products.

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