Coinbase Global (NASDAQ:COIN) Shares Gap Down on Insider Selling

Coinbase Global, Inc. (NASDAQ:COIN) gapped down before the market opened on Friday following insider selling activity. The stock had previously closed at $192.70, but opened at $184.97. Coinbase Global shares last traded at $184.9590, with a volume of 1,598,981 shares changing hands.

Specifically, Director Frederick Wilson sold 10,000 shares of Coinbase Global stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $178.93, for a total value of $1,789,300.00. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

A number of brokerages have commented on COIN. Wolfe Research set a $325.00 target price on Coinbase Global in a report on Thursday, July 9th. President Capital lifted their price target on Coinbase Global from $236.00 to $264.00 and gave the stock a “buy” rating in a research note on Tuesday, May 12th. Compass Point reiterated a “sell” rating on shares of Coinbase Global in a research report on Monday, June 1st. KeyCorp reissued a “sector weight” rating on shares of Coinbase Global in a research note on Wednesday, June 17th. Finally, Wedbush set a $224.00 price objective on Coinbase Global in a report on Friday, May 8th. Eighteen equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat, Coinbase Global presently has an average rating of “Hold” and an average price target of $216.87.

Key Headlines Impacting Coinbase Global

Here are the key news stories impacting Coinbase Global this week:

• Positive Sentiment: Crypto-market rebound: Bitcoin rallied roughly 3%, lifting Coinbase and other crypto-related stocks. Investors are also anticipating a potential September 15 Senate procedural vote on federal crypto market-structure legislation, which could provide greater regulatory clarity. Coinbase Stock Surges Thursday: What’s Happening?
• Positive Sentiment: U.S. equity perpetuals opportunity: Coinbase filed SEC registration documents covering plans to offer single-stock perpetual contracts in the United States. The product still requires Commodity Futures Trading Commission approval, but approval could expand Coinbase’s derivatives business and diversify revenue. Coinbase seeks U.S. approval for equity perpetuals
• Positive Sentiment: International derivatives expansion: Coinbase launched regulated perpetual and dated crypto futures in Canada for eligible customers, including contracts tied to Bitcoin, Ether and Solana, with leverage of up to 10 times. The launch broadens its trading base and supports its “everything exchange” strategy. Coinbase launches regulated crypto derivatives in Canada
• Positive Sentiment: Recent updates on tokenized stocks, expanding trading access and rising crypto trading-volume share reinforce Coinbase’s efforts to diversify beyond spot cryptocurrency transactions.
• Neutral Sentiment: Chief Financial Officer Alesia Haas and other executives will speak at Goldman Sachs’ technology conference on September 9 and Citi’s Global TMT Conference on September 10. The events could provide updates on strategy, regulation and guidance, but no new outlook has been announced.
• Negative Sentiment: Insider selling: Director Frederick Wilson sold 10,000 shares worth approximately $1.79 million. Because the transaction occurred under a pre-arranged Rule 10b5-1 plan, it is a weaker bearish signal, although recent reported insider activity has been dominated by sales. SEC Form 4 filing
• Negative Sentiment: Zacks added COIN to its Rank #5 “Strong Sell” list, adding a sentiment-based headwind. Coinbase also recently reported a quarterly earnings and revenue miss, underscoring the stock’s sensitivity to crypto-market conditions.

Coinbase Global Trading Down 4.4%

The company has a current ratio of 2.42, a quick ratio of 2.42 and a debt-to-equity ratio of 0.45. The company has a fifty day moving average price of $162.76 and a two-hundred day moving average price of $175.46. The firm has a market capitalization of $48.61 billion, a price-to-earnings ratio of -48.09 and a beta of 3.39.

Coinbase Global (NASDAQ:COIN) last posted its quarterly earnings results on Thursday, July 30th. The cryptocurrency exchange reported ($1.36) EPS for the quarter, missing the consensus estimate of ($0.44) by ($0.92). Coinbase Global had a negative net margin of 15.72% and a positive return on equity of 3.12%. The company had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.29 billion. During the same period in the prior year, the business posted $5.14 EPS. Coinbase Global’s revenue for the quarter was down 18.5% compared to the same quarter last year. As a group, research analysts forecast that Coinbase Global, Inc. will post -0.02 earnings per share for the current fiscal year.

Institutional Trading of Coinbase Global

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Integrated Wealth Concepts LLC grew its holdings in shares of Coinbase Global by 24.2% in the first quarter. Integrated Wealth Concepts LLC now owns 2,119 shares of the cryptocurrency exchange’s stock valued at $365,000 after purchasing an additional 413 shares during the period. Empowered Funds LLC raised its stake in Coinbase Global by 25.8% during the first quarter. Empowered Funds LLC now owns 8,581 shares of the cryptocurrency exchange’s stock worth $1,478,000 after purchasing an additional 1,761 shares during the period. Focus Partners Wealth boosted its holdings in Coinbase Global by 9.9% in the 1st quarter. Focus Partners Wealth now owns 5,202 shares of the cryptocurrency exchange’s stock valued at $896,000 after purchasing an additional 467 shares during the last quarter. Sivia Capital Partners LLC acquired a new position in Coinbase Global in the 2nd quarter valued at about $285,000. Finally, Cerity Partners LLC grew its stake in shares of Coinbase Global by 8.6% in the 2nd quarter. Cerity Partners LLC now owns 17,694 shares of the cryptocurrency exchange’s stock valued at $6,203,000 after buying an additional 1,402 shares during the period. 68.84% of the stock is owned by institutional investors and hedge funds.

Coinbase Global Company Profile

Coinbase Global, Inc is a U.S.-based company that operates one of the largest cryptocurrency exchange platforms. Founded in 2012 by Brian Armstrong and Fred Ehrsam and headquartered in San Francisco, Coinbase provides technology and infrastructure to buy, sell, store and use a broad range of digital assets. The company became a public company through a direct listing on the NASDAQ in April 2021 and offers services tailored to both retail and institutional customers.

Coinbase’s product portfolio includes its consumer trading platform, a self-custody mobile wallet, and institutional services such as custody, prime brokerage and execution tools.