Coinbase Global (NASDAQ:COIN) has recently faced a downgrade from a “hold” to a “sell” rating by analysts at Wall Street Zen, a move that has caught the attention of investors in the cryptocurrency sector. This downgrade, noted in a research note issued on Saturday, reflects growing concerns surrounding the exchange”s stock performance.
In addition to Wall Street Zen”s assessment, various other brokerages have provided their evaluations on Coinbase”s stock. For instance, Redburn Partners established a price target of $417.00 for Coinbase shares in a report published on October 3rd. Meanwhile, Citigroup has raised its price objective for the exchange from $270.00 to $505.00, designating it with a “buy” rating in a note dated July 29th. Similarly, Canaccord Genuity Group reaffirmed a “buy” rating and set a target price of $400.00 on August 1st.
On the flip side, Rothschild Redb upgraded Coinbase from a “hold” rating to a “strong-buy” rating on October 3rd, indicating some analysts remain optimistic about the company”s prospects. Conversely, Keefe, Bruyette & Woods reduced their price target for Coinbase from $355.00 to $335.00, assigning a “market perform” rating.
The mixed analyst ratings present a complex picture for Coinbase. Currently, the consensus among analysts shows one strong buy, eighteen buy ratings, ten hold ratings, and one sell rating. According to MarketBeat.com, Coinbase holds a consensus rating of “Moderate Buy” with a target price averaging $398.08.
Coinbase recently disclosed its quarterly earnings on October 30th, revealing earnings per share of $1.44, which surpassed analysts” expectations of $1.04 by a notable margin of $0.40. Additionally, the firm reported revenues of $1.87 billion, surpassing forecasts of $1.77 billion. This represents a 55.1% increase in revenue compared to the same quarter last year.
In terms of insider trading, Director Frederick Ernest Ehrsam III sold 55,688 shares on November 10th at an average price of $321.81, totaling approximately $17.9 million. CEO Brian Armstrong also sold 40,000 shares on November 17th for around $10.9 million. Over the past ninety days, insiders have sold a total of 755,171 shares valued at approximately $234.8 million, suggesting significant insider activity.
Institutional trading has also seen notable movements as large investors adjust their holdings in Coinbase. For example, Cadent Capital Advisors LLC increased their stake by 1.0% in the second quarter, while Ameriflex Group Inc. boosted its position by 20.0%. Overall, institutional investors now hold 68.84% of the company”s shares.
Founded to provide financial infrastructure and technology for the crypto economy, Coinbase has positioned itself as a critical player in both the consumer and institutional spaces, offering services that facilitate trading and liquidity in various crypto assets.
