Key Points
- Director Steven Hovde bought 5,000 Coastal Financial shares at $44 each, investing $220,000 and increasing his direct ownership by 43.48% to 16,500 shares.
- Coastal Financial reported a quarterly EPS loss of $2.76, missing the $1.01 consensus estimate by $3.77, despite revenue of $178.07 million exceeding expectations. Shares opened at $45.34, near the lower end of their 52-week range.
- Investor concerns remain elevated as law firms investigate potential securities-law violations and Zacks downgraded the stock to “strong sell,” although analysts overall maintain a “Moderate Buy” consensus with a $91.33 price target.
Coastal Financial Corporation (NASDAQ:CCB - Get Free Report) insider Christopher Adams bought 290 shares of the company's stock in a transaction dated Friday, August 7th. The shares were acquired at an average price of $45.15 per share, for a total transaction of $13,093.50. Following the completion of the transaction, the insider directly owned 30,407 shares in the company, valued at approximately $1,372,876.05. This trade represents a 0.96% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link.
Coastal Financial Price Performance
Shares of Coastal Financial stock opened at $45.34 on Friday. The firm has a market cap of $691.43 million, a PE ratio of -161.92 and a beta of 0.76. Coastal Financial Corporation has a twelve month low of $36.61 and a twelve month high of $120.05. The company has a quick ratio of 1.03, a current ratio of 1.06 and a debt-to-equity ratio of 0.10. The business has a 50-day moving average price of $70.26 and a 200 day moving average price of $77.57.
Coastal Financial (NASDAQ:CCB - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported ($2.76) EPS for the quarter, missing the consensus estimate of $1.01 by ($3.77). The business had revenue of $178.07 million during the quarter, compared to analyst estimates of $148.50 million. Coastal Financial had a negative net margin of 0.53% and a negative return on equity of 0.79%. Sell-side analysts predict that Coastal Financial Corporation will post 1.26 earnings per share for the current fiscal year.
Coastal Financial News Roundup
Here are the key news stories impacting Coastal Financial this week:
- Positive Sentiment: Company insiders made substantial open-market purchases. CEO Eric M. Sprink bought 10,000 shares for approximately $444,500, while Director Steven D. Hovde purchased 15,000 shares in two transactions totaling about $658,300. Christopher D. Adams also bought 290 shares. These purchases can signal that management and directors view the recent decline as an attractive entry point, although insider buying does not guarantee a recovery. CEO SEC filing Director SEC filing
- Neutral Sentiment: A regional-bank second-quarter comparison article highlighted Coastal Financial alongside peers, but the supplied report provides no specific new operating conclusions or estimates that would materially change the investment outlook. Regional banks second-quarter comparison
- Negative Sentiment: Kaplan Fox, Bleichmar Fonti & Auld, and Pomerantz announced investigations into potential securities-law violations or securities fraud following Coastal Financial’s significant stock decline. These announcements increase headline, litigation and reputational risk, although they do not establish that wrongdoing occurred. Kaplan Fox investigation Bleichmar Fonti investigation Pomerantz investigation
- Negative Sentiment: Zacks Research downgraded CCB from “hold” to “strong sell,” reinforcing concerns about the company’s outlook. Its latest quarterly results also showed a substantial EPS loss versus expectations, despite revenue exceeding estimates, suggesting profitability—not demand—is the primary concern. Zacks Research
Institutional Investors Weigh In On Coastal Financial
Several institutional investors and hedge funds have recently added to or reduced their stakes in CCB. EverSource Wealth Advisors LLC lifted its stake in shares of Coastal Financial by 129.0% in the fourth quarter. EverSource Wealth Advisors LLC now owns 300 shares of the company's stock worth $34,000 after buying an additional 169 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new stake in Coastal Financial in the 4th quarter valued at about $50,000. Smartleaf Asset Management LLC raised its holdings in Coastal Financial by 20,700.0% in the 4th quarter. Smartleaf Asset Management LLC now owns 624 shares of the company's stock valued at $72,000 after acquiring an additional 621 shares during the last quarter. Russell Investments Group Ltd. lifted its stake in Coastal Financial by 229.5% in the 2nd quarter. Russell Investments Group Ltd. now owns 827 shares of the company's stock worth $80,000 after purchasing an additional 576 shares in the last quarter. Finally, Tower Research Capital LLC TRC lifted its stake in Coastal Financial by 521.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,262 shares of the company's stock worth $122,000 after purchasing an additional 1,059 shares in the last quarter. Institutional investors and hedge funds own 59.24% of the company's stock.
Analysts Set New Price Targets
Several equities research analysts recently commented on CCB shares. Stephens reissued an "overweight" rating and issued a $110.00 price target on shares of Coastal Financial in a report on Friday, May 1st. Raymond James Financial cut shares of Coastal Financial from a "strong-buy" rating to an "outperform" rating and set a $50.00 target price for the company. in a research note on Friday, July 31st. Wall Street Zen upgraded shares of Coastal Financial from a "sell" rating to a "hold" rating in a research report on Saturday, May 16th. TD Cowen decreased their price target on shares of Coastal Financial from $110.00 to $47.00 and set a "buy" rating on the stock in a research note on Friday, July 31st. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Coastal Financial in a report on Monday, June 29th. Five equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $91.33.
Get Our Latest Research Report on Coastal Financial
Coastal Financial Company Profile
(
Get Free Report)
Coastal Financial Corporation is a bank holding company whose principal subsidiary, Coastal Community Bank, provides a full range of community banking services to clients along North Carolina's central and eastern coastline. The company focuses on delivering personalized relationship banking to individuals, small businesses, and local professionals in seaside and inland communities.
Through Coastal Community Bank, Coastal Financial offers deposit products including checking, savings, money market accounts and certificates of deposit.
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