Coinbase Global (NASDAQ:COIN) Stock Jumps 5.1% - Is It Time to Consider Buying?

Coinbase Global, Inc. (NASDAQ:COIN) saw its stock price increase by 5.1% on Wednesday, reaching as high as $320.13 before closing at $317.73. During the trading session, approximately 3,853,205 shares were exchanged, significantly lower than the average volume of 11,266,338 shares. The previous closing price was $302.42.

Recent Analyst Ratings

Several financial analysts have recently updated their outlooks for Coinbase Global. Needham & Company LLC raised their target price from $375.00 to $420.00, maintaining a "buy" rating for the stock. On October 31, Bank of America adjusted their price goal from $196.00 to $214.00, giving the stock a "neutral" rating. Meanwhile, Canaccord Genuity Group reiterated their "buy" rating and set a target price of $280.00. B. Riley initiated coverage with a "neutral" rating and a price target of $185.00.

Piper Sandler also reaffirmed a "neutral" rating with a price target of $245.00 on November 1. Overall, one research analyst has given the stock a sell rating, nine have labeled it as a hold, and ten have given it a buy rating. According to MarketBeat.com, Coinbase has a consensus rating of "Hold" with an average target price of $276.22.

Company Financials

As of now, Coinbase Global has a market capitalization of $79.11 billion and a price-to-earnings (P/E) ratio of 54.22. The company’s debt-to-equity ratio stands at 0.48, with both the quick ratio and current ratio at 1.03. The fifty-day moving average is at $248.10, while the two-hundred day moving average is $223.38.

Coinbase Global recently reported its quarterly earnings on October 30, disclosing earnings per share 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%. The reported revenue for the quarter was $1.21 billion, compared to a consensus estimate of $1.26 billion, reflecting a significant year-over-year revenue increase of 78.8%. Analysts anticipate that Coinbase will post an EPS of 4.44 for the current year.

Insider Transactions

In recent news, Director Gokul Rajaram sold 400 shares on October 16 at an average price of $204.44, totaling $81,776. Following this sale, he holds 7,771 shares valued at approximately $1,588,703. Additionally, COO Emilie Choi sold 1,500 shares on September 13 for about $243,360, reducing her ownership marginally. In the last ninety days, insiders have sold a total of 272,220 shares, amounting to a value of $80,030,608. Currently, insiders hold 23.43% of the stock.

Institutional Investor Activity

Recent activity from institutional investors has seen significant changes in their holdings of Coinbase stock. Clear Street Derivatives LLC acquired a new stake worth approximately $409.92 million in the third quarter. Renaissance Technologies LLC increased its position by 185.9% in the second quarter, now holding 1,063,117 shares valued at $236.26 million after purchasing 691,288 additional shares.

American Century Companies Inc. significantly boosted its stake by 1,136.7% during the same period, now owning 474,234 shares worth $105.39 million. Additionally, Geode Capital Management LLC increased its holdings by 10.1% in the third quarter, now owning 3,425,619 shares valued at $609.79 million. Lastly, Azora Capital LP raised its stake by over 214.1% in the third quarter, owning 322,868 shares valued at $57.53 million. Institutional investors now hold about 68.84% of Coinbase's stock.

About Coinbase Global

Coinbase Global, Inc specializes in providing financial infrastructure and technology for the global cryptocurrency economy, both in the U.S. and internationally. It offers essential financial services for consumers and institutions, helping facilitate transactions in digital assets.

Coinbase, Investors, Stocks