Coinbase Global (NASDAQ:COIN) Sees 5.1% Increase - Should You Invest?

Coinbase Global, Inc. (NASDAQ:COIN) experienced a notable increase in its share price, trading up by 5.1% on Wednesday. The stock reached a high of $320.13 before closing at $317.73. During this trading session, approximately 3,853,205 shares exchanged hands, which is a significant decline of 66% from the average trading volume of 11,266,338 shares. The stock had previously closed at $302.42.

Analyst Ratings Updates

In recent days, several brokerage firms have released their analyses and ratings regarding COIN. Needham & Company LLC raised its target price for Coinbase Global from $375.00 to $420.00, maintaining a "buy" rating for the stock. On the other hand, Bank of America adjusted its price target from $196.00 to $214.00, while assigning a "neutral" rating in a report dated October 31st. Canaccord Genuity Group also reaffirmed a "buy" rating and set a price target of $280.00 for Coinbase shares. Meanwhile, B. Riley commenced coverage on Coinbase with a "neutral" rating and a target price of $185.00. Additionally, Piper Sandler reiterated a "neutral" rating with a price target of $245.00. Currently, one analyst has given a "sell" rating, nine have assigned a "hold" rating, and ten analysts are recommending a "buy". MarketBeat data shows that the consensus rating for the stock is "Hold" with an average target price of $276.22.

Coinbase Global Stock Performance

Coinbase Global boasts a market capitalization of $79.11 billion, featuring a P/E ratio of 54.22 along with a beta of 3.56. Its debt-to-equity ratio stands at 0.48, with both the quick and current ratios at 1.03. The fifty-day moving average for the stock is currently $248.10, while its two-hundred-day moving average is $223.38.

Recent Earnings Report

On October 30th, Coinbase Global released its quarterly earnings results. The cryptocurrency exchange reported earnings per share (EPS) of $0.28, which fell short of the consensus estimate of $0.41 by $0.13. The company achieved a net margin of 29.76% and a return on equity of 14.81%, with total revenue for the quarter amounting to $1.21 billion, compared to the expected $1.26 billion. The year-over-year revenue growth was impressive at 78.8%. Analysts project Coinbase Global to post an EPS of 4.44 for the current year.

Insider Transactions

Recent insider transactions indicate movements within the company. On October 16th, Director Gokul Rajaram sold 400 shares at an average price of $204.44, resulting in a total transaction value of approximately $81,776. Following this sale, he holds 7,771 shares, valued at around $1,588,703. COO Emilie Choi also sold 1,500 shares on September 13th at an average price of $162.24, totaling $243,360. After this transaction, Choi owns 187,601 shares of Coinbase, valued at approximately $30,436,386. Over the last ninety days, insiders sold 272,220 shares valued at $80,030,608, reflecting that 23.43% of the stock is held by insiders.

Institutional Investor Activity

Hedge funds and institutional investors have also been active with Coinbase shares recently. Clear Street Derivatives LLC established a new position valued at approximately $409,919,000 in the third quarter. Renaissance Technologies LLC significantly increased its stake by 185.9%, holding now 1,063,117 shares after buying an additional 691,288 shares. American Century Companies Inc. raised its holdings by an astonishing 1,136.7% and now owns 474,234 shares worth $105,389,000. Geode Capital Management LLC added to its position by 10.1%, bringing its total to 3,425,619 shares. Lastly, Azora Capital LP expanded its stake by 214.1%, owning 322,868 shares worth $57,525,000. The institutional ownership of Coinbase Global stands at 68.84%.

Company Overview

Coinbase Global, Inc. provides key financial infrastructure and technological support for the cryptocurrency economy both in the U.S. and internationally. It operates the primary financial account for consumers in the crypto economy while also offering a marketplace that allows institutions to transact in crypto assets.

Conclusion

As shown by the recent trading patterns and analyst updates concerning Coinbase Global, potential investors are weighing whether it's the right time to buy. With fluctuating recommendations from analysts and significant insider activities, investors should consider all factors before making any investment decisions.

Coinbase, Stock, Invest