Coinbase Global (NASDAQ:COIN) Trading 5.1% Higher - Here's Why

On Wednesday, Coinbase Global, Inc. (NASDAQ:COIN) saw its share price increase by 5.1%. The stock reached a peak of $320.13 before finishing at $317.73. During the trading session, a total of 3,853,205 shares were exchanged—a significant drop of 66% from the average daily volume of 11,266,338 shares. Previously, the stock had closed at $302.42.

Recent Analyst Ratings

Various brokerage firms have recently released reports regarding COIN. Notably, Needham & Company LLC raised its target price for Coinbase Global from $375.00 to $420.00, maintaining a "buy" rating. Bank of America also adjusted its target price, increasing it from $196.00 to $214.00 while rating the stock as "neutral" in a report dated October 31st. Additionally, Canaccord Genuity Group reiterated a "buy" rating, setting a target price of $280.00 on October 31st. B. Riley initiated coverage on Coinbase on October 23rd, rating the stock as "neutral" with a target price of $185.00. Finally, Piper Sandler reaffirmed a "neutral" rating with a target price of $245.00 in a research note on November 1st. Overall, one analyst has issued a sell rating, nine have a hold rating, and ten have a buy rating, leading to a consensus rating of "Hold" and an average target price of $276.22 according to MarketBeat.com.

Stock Performance Overview

As of now, Coinbase Global boasts a market capitalization of $79.11 billion, a price-to-earnings (P/E) ratio of 54.22, and a beta of 3.56. The firm's debt-to-equity ratio stands at 0.48, while both its quick and current ratios are 1.03. The stock's fifty-day moving average is currently $248.10, and the two-hundred-day moving average is at $223.38.

Quarterly Earnings Results

Coinbase Global recently reported its quarterly earnings on October 30th. The cryptocurrency exchange declared earnings per share (EPS) of $0.28, falling short of the consensus estimate of $0.41 by a margin of $0.13. The company recorded a net margin of 29.76% and a return on equity of 14.81%. Revenue for the quarter was $1.21 billion, below the forecast of $1.26 billion, but showed a year-over-year increase of 78.8%, compared to a net loss of ($0.01) EPS reported in the same period last year. Analysts predict that Coinbase Global will achieve an EPS of 4.44 for the current year.

Recent Insider Transactions

In other news involving Coinbase Global, Director Gokul Rajaram sold 400 shares on October 16th, at an average price of $204.44, totaling $81,776. Following this transaction, the director now retains 7,771 shares valued at approximately $1,588,703.24, marking a 4.90% decrease in his holdings. COO Emilie Choi also sold 1,500 shares on September 13th for an average price of $162.24, bringing the total value of that transaction to $243,360. Afterward, she now owns 187,601 shares worth around $30,436,386.24, reflecting a 0.79% decrease in her ownership. Over the last ninety days, insiders have sold 272,220 shares worth a total of $80,030,608, with insiders now holding 23.43% of the company's stock.

Hedge Fund Activity

Institutional investors and hedge funds have recently adjusted their positions in Coinbase Global. Clear Street Derivatives LLC made a hefty new investment in the third quarter, valued at about $409,919,000. Renaissance Technologies LLC increased its stake in Coinbase by 185.9% during the second quarter, holding now 1,063,117 shares worth $236,258,000 after acquiring an additional 691,288 shares. American Century Companies Inc. also raised its stake by an impressive 1,136.7% in the second quarter, now owning 474,234 shares valued at $105,389,000. Furthermore, Geode Capital Management LLC expanded its position by 10.1% in the third quarter, owning 3,425,619 shares worth $609,789,000 after buying 314,388 additional shares. Lastly, Azora Capital LP increased its stake by 214.1% in the third quarter, owning now 322,868 shares valued at $57,525,000. Currently, hedge funds and institutional investors collectively hold 68.84% of the company's stock.

Company Profile

Coinbase Global, Inc. specializes in providing financial infrastructure and technology for the cryptocurrency economy, both within the United States and globally. The company offers a primary financial account in the cryptocurrency sector for consumers and a marketplace that enables liquidity for institutional transactions involving crypto assets.

Final Thoughts

Before making an investment decision regarding Coinbase Global, it is advisable to consider various expert analyses and maintain awareness of insider trading movements. With the current consensus rating being "Hold" among analysts, potential investors might find it beneficial to explore alternative recommendations from top-rated analysts.

Coinbase, Investment, Earnings