Coastal Financial (NASDAQ:CCB) Sets New 1-Year Low – Should You Sell?

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

Trending Headlines about Coastal Financial

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

• Positive Sentiment: Community recognition: Coastal Community Bank, Coastal Financial’s banking subsidiary, received a Silver award in the Seattle Times’ Best Bank category. The recognition may support the company’s brand and customer relationships, although it is unlikely to materially affect near-term earnings. Coastal Community Bank earns Silver in Best Bank Category, Highlights Community Support
• Neutral Sentiment: Analyst commentary: A market report discussed analyst views on Coastal Financial, but the available information does not specify a new rating, price target, or earnings forecast that would clearly change the investment outlook. Analysts Offer Insights on Financial Companies
• Negative Sentiment: Multiple securities investigations: Several law firms, including Kaplan Fox, BFA Law, Glancy Prongay Wolff & Rotter, and Howard G. Smith, announced or reiterated investigations into potential securities-law violations involving Coastal Financial. The notices do not establish wrongdoing, but they increase litigation, regulatory, reputational, and potential financial risks and likely add to investor uncertainty. Kaplan Fox securities investigation
• Negative Sentiment: Partner-banking concerns: Bluevine’s reported sale is prompting renewed scrutiny of Coastal Financial’s dependence on fintech and partner-banking relationships. Investors may be concerned about the durability of this business model, partner concentration, and the potential effect on growth and earnings. Bluevine sale tests Coastal Financial’s partner-banking model

Wall Street Analyst Weigh In

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

Coastal Financial Price Performance

The firm has a market capitalization of $610.68 million, a P/E ratio of -142.64 and a beta of 0.78. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.03 and a current ratio of 1.05. The firm has a 50-day moving average of $48.91 and a 200-day moving average of $66.32.

Coastal Financial (NASDAQ:CCB) last posted its earnings results on Thursday, July 30th. The company reported ($2.76) 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 business 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 EPS for the current year.

Insider Activity

In other Coastal Financial news, CEO Eric Sprink acquired 10,000 shares of Coastal Financial stock in a transaction that occurred on Thursday, August 6th. The stock was bought at an average cost of $44.45 per share, for a total transaction of $444,500.00. Following the acquisition, the chief executive officer owned 173,238 shares of the company’s stock, valued at $7,700,429.10. This represents a 6.13% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Steven Hovde bought 10,000 shares of the stock in a transaction on Thursday, August 6th. The shares were bought at an average price of $43.83 per share, for a total transaction of $438,300.00. Following the purchase, 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 position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased a total of 25,290 shares of company stock valued at $1,115,894 over the last quarter. 13.49% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Mendon Capital Advisors Corp grew its position in Coastal Financial by 86.7% in the 1st quarter. Mendon Capital Advisors Corp now owns 56,000 shares of the company’s stock worth $4,262,000 after purchasing an additional 26,000 shares during the period. Renaissance Technologies LLC bought a new position in shares of Coastal Financial during the 1st quarter valued at $1,720,000. Quantinno Capital Management LP lifted its holdings in shares of Coastal Financial by 1,026.9% during the 1st quarter. Quantinno Capital Management LP now owns 25,377 shares of the company’s stock valued at $1,931,000 after buying an additional 23,125 shares during the period. Dimensional Fund Advisors LP lifted its holdings in shares of Coastal Financial by 7.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 359,571 shares of the company’s stock valued at $27,361,000 after buying an additional 25,424 shares during the period. Finally, Bank of America Corp DE boosted its stake in shares of Coastal Financial by 71.2% in the 1st quarter. Bank of America Corp DE now owns 86,657 shares of the company’s stock worth $6,595,000 after buying an additional 36,045 shares during the last quarter. Institutional investors own 59.24% of the company’s stock.

Coastal Financial Company Profile

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.