Coinbase Global (NASDAQ:COIN) Shares Gap Down After Analyst Downgrade

Coinbase Global, Inc. (NASDAQ:COIN) shares gapped down before the market opened on Friday after Benchmark lowered their price target on the stock from $270.00 to $230.00. The stock had previously closed at $163.58, but opened at $153.10. Benchmark currently has a buy rating on the stock. Coinbase Global shares last traded at $140.99, with a volume of 3,541,855 shares traded.

Other equities research analysts have also recently issued research reports about the company. Needham & Company LLC decreased their price target on Coinbase Global from $220.00 to $177.00 and set a “buy” rating for the company in a research note on Friday. BTIG Research decreased their target price on shares of Coinbase Global from $260.00 to $240.00 and set a “buy” rating for the company in a research report on Friday. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $208.00 price target on shares of Coinbase Global in a report on Wednesday, June 17th. Wolfe Research set a $325.00 price target on shares of Coinbase Global in a research report on Thursday, July 9th. Finally, Piper Sandler set a $146.00 price objective on shares of Coinbase Global in a research note on Friday. Eighteen research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $226.41.

Insiders Place Their Bets

In related news, insider Lawrence J. Brock sold 6,616 shares of the firm’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $189.01, for a total transaction of $1,250,490.16. Following the completion of the sale, the insider owned 517 shares of the company’s stock, valued at $97,718.17. This trade represents a 92.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frederick R. Wilson sold 10,000 shares of Coinbase Global stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $159.09, for a total value of $1,590,900.00. Following the completion of the sale, the director owned 20,000 shares of the company’s stock, valued at approximately $3,181,800. The trade was a 33.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 30,627 shares of company stock worth $5,327,841 in the last quarter. 16.66% of the stock is currently owned by company insiders.

Coinbase Global News Roundup

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

• Positive Sentiment: Coinbase captured a record 10.3% share of global crypto trading volume, up from 9.1% in the first quarter, despite weaker industry activity. Growth in derivatives, stablecoins, prediction markets, subscriptions and Base could make the business less dependent on spot-crypto trading. Coinbase Hits Record Market Share Despite Loss
• Positive Sentiment: Several analysts maintained Buy ratings, including Canaccord with a $300 price target and H.C. Wainwright with a $265 target, citing diversification, regulatory clarity and potential upside in a future crypto recovery. Analyst Sees Coinbase as Beneficiary of Crypto Upswing
• Positive Sentiment: A federal judge dismissed much of a customer lawsuit alleging Coinbase illegally sold unregistered securities, including claims involving matched customer transactions. The ruling reduces a significant legal overhang, though remaining claims may still create risk. Coinbase Beats Much of Customer Lawsuit
• Neutral Sentiment: CEO Brian Armstrong said Coinbase would continue operating normally if the Senate does not pass the CLARITY Act before its August recess. Passage could nevertheless provide clearer rules and support customer growth. Brian Armstrong Discusses the CLARITY Act
• Negative Sentiment: Coinbase reported a $359 million GAAP net loss, or $1.36 per share, versus an expected loss of about $122 million, while revenue fell 18.5% year over year to $1.22 billion and missed estimates. This marked the company’s third consecutive quarterly loss. Coinbase Reports Third Straight Quarterly Loss
• Negative Sentiment: Transaction revenue declined 21% to $599 million as crypto trading volumes and volatility weakened. Fading expectations for Federal Reserve rate cuts, falling bitcoin prices and outflows from spot crypto ETFs are adding pressure to the broader sector. Coinbase Shares Take Hit on Quarterly Loss
• Negative Sentiment: Brokerages including Needham, Barclays, Goldman Sachs, BTIG and Clear Street cut price targets after the earnings miss. Needham still rates the shares Buy but reduced its target to $177, signaling diminished near-term expectations. COIN Price Target Cuts

Institutional Trading of Coinbase Global

Several hedge funds have recently modified their holdings of the stock. MV Capital Management Inc. bought a new position in Coinbase Global during the fourth quarter worth $27,000. Palisade Asset Management LLC acquired a new stake in Coinbase Global in the third quarter worth $29,000. Osbon Capital Management LLC bought a new stake in Coinbase Global in the fourth quarter valued at $30,000. Glen Eagle Advisors LLC increased its stake in Coinbase Global by 101.1% in the first quarter. Glen Eagle Advisors LLC now owns 175 shares of the cryptocurrency exchange’s stock valued at $31,000 after purchasing an additional 88 shares in the last quarter. Finally, Archer Investment Corp raised its holdings in shares of Coinbase Global by 546.4% during the first quarter. Archer Investment Corp now owns 181 shares of the cryptocurrency exchange’s stock valued at $32,000 after purchasing an additional 153 shares during the period. Institutional investors own 68.84% of the company’s stock.

Coinbase Global Stock Down 14.1%

The stock has a market cap of $37.04 billion, a price-to-earnings ratio of 52.43, a price-to-earnings-growth ratio of 10.30 and a beta of 3.35. The firm’s fifty day moving average price is $164.00 and its two-hundred day moving average price is $181.97. The company has a debt-to-equity ratio of 0.44, a current ratio of 2.14 and a quick ratio of 2.14.

Coinbase Global (NASDAQ:COIN) last issued its earnings results on Thursday, May 7th. The cryptocurrency exchange reported ($1.49) EPS for the quarter, missing the consensus estimate of $0.06 by ($1.55). Coinbase Global had a net margin of 12.20% and a return on equity of 4.16%. The firm had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.49 billion. During the same quarter in the prior year, the business earned $0.24 earnings per share. The business’s quarterly revenue was down 30.5% on a year-over-year basis. Sell-side analysts forecast that Coinbase Global, Inc. will post 1.42 earnings per share for the current fiscal year.

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.