Coinbase Global (NASDAQ:COIN) Trading Down 15.5% After Earnings Miss

Coinbase Global, Inc. (NASDAQ:COIN) fell 15.5% on Friday following a weaker than expected earnings announcement. The company traded as low as $314.88 and last traded at $319.35. 14,393,652 shares traded hands during mid-day trading, an increase of 26% from the average session volume of 11,436,733 shares. The stock had previously closed at $377.76.

The cryptocurrency exchange reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.91 by ($0.79). Coinbase Global had a return on equity of 16.95% and a net margin of 40.87%. The firm had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.68 billion. During the same period last year, the firm earned $0.14 EPS. The company’s revenue for the quarter was up 3.3% on a year-over-year basis.

Wall Street Analysts Forecast Growth

COIN has been the topic of a number of recent research reports. Erste Group Bank began coverage on shares of Coinbase Global in a research report on Wednesday, July 23rd. They set a “buy” rating on the stock. JMP Securities increased their target price on shares of Coinbase Global from $400.00 to $440.00 and gave the company a “market outperform” rating in a report on Monday, July 14th. Canaccord Genuity Group reiterated a “buy” rating and issued a $400.00 target price on shares of Coinbase Global in a research report on Friday. China Renaissance assumed coverage on shares of Coinbase Global in a research report on Tuesday, June 17th. They set a “buy” rating and a $353.30 price target for the company. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $470.00 price objective on shares of Coinbase Global in a research note on Friday. One equities research analyst has rated the stock with a sell rating, eleven have given a hold rating and thirteen have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $344.55.

Insiders Place Their Bets

In other news, Director Frederick Ernest Ehrsam III sold 30,167 shares of the firm’s stock in a transaction dated Tuesday, May 13th. The shares were sold at an average price of $252.68, for a total value of $7,622,597.56. Following the completion of the sale, the director directly owned 10,417 shares of the company’s stock, valued at approximately $2,632,167.56. This trade represents a 74.33% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Brian Armstrong sold 336,265 shares of the business’s stock in a transaction dated Wednesday, June 25th. The shares were sold at an average price of $362.61, for a total transaction of $121,933,051.65. Following the transaction, the chief executive officer owned 526 shares in the company, valued at $190,732.86. This represents a 99.84% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,208,340 shares of company stock worth $439,997,456. Insiders own 17.65% of the company’s stock.

Hedge Funds Weigh In On Coinbase Global

Institutional investors have recently added to or reduced their stakes in the company. Mascagni Wealth Management Inc. bought a new position in shares of Coinbase Global during the fourth quarter valued at approximately $25,000. Copia Wealth Management bought a new position in shares of Coinbase Global during the fourth quarter valued at $26,000. Bessemer Group Inc. increased its holdings in shares of Coinbase Global by 297.4% during the first quarter. Bessemer Group Inc. now owns 151 shares of the cryptocurrency exchange’s stock valued at $26,000 after acquiring an additional 113 shares in the last quarter. McClarren Financial Advisors Inc. purchased a new position in shares of Coinbase Global in the 1st quarter worth about $30,000. Finally, Cullen Frost Bankers Inc. bought a new position in Coinbase Global in the 2nd quarter worth about $30,000. Institutional investors own 68.84% of the company’s stock.

Coinbase Global Stock Down 16.7%

The company has a market capitalization of $79.89 billion, a PE ratio of 30.43, a P/E/G ratio of 26.32 and a beta of 3.70. The company has a debt-to-equity ratio of 0.40, a quick ratio of 2.52 and a current ratio of 2.52. The company’s 50-day moving average is $327.63 and its 200 day moving average is $259.64.

Coinbase Global Company Profile

Coinbase Global, Inc provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions.