Insider Sales Raise Concerns at Coinbase Global

Insider Activity Raises Questions

Coinbase Global, Inc. (NASDAQ:COIN) faced a 3.1% decline in its stock price during Friday's trading session following a flurry of insider selling. The stock traded as low as $249.55, settling at $253.90 at the close. Notably, trading volume plummeted by 76% from its average, with only 3,680,537 shares exchanging hands.

Paul Grewal Unloads Significant Shares

Insider Paul Grewal divested 10,000 shares of Coinbase Global stock on Tuesday, December 26th, in a transaction valued at $1,737,600.00. The shares were sold at an average price of $173.76, leaving Grewal with 61,665 shares valued at approximately $10,714,910.40. The transaction was disclosed in a filing with the Securities & Exchange Commission (SEC).

Jennifer Jones Sells Shares

Chief Accounting Officer Jennifer N. Jones also engaged in insider selling, disposing of 1,624 shares on Monday, February 26th. The shares were sold at an average price of $168.75, totaling $274,050.00. Following the transaction, Jones holds 29,236 shares, valued at approximately $4,933,575. The sale was reported in an SEC filing.

Insiders Offload Shares in Bulk

In the past 90 days, insiders have sold a staggering 844,406 shares of Coinbase Global stock, with a combined value of $129,339,482. This represents a significant 33.16% of the company's outstanding shares.

Analysts Weigh In on Coinbase Global

Analysts have been active in issuing ratings on Coinbase Global shares. Wedbush upgraded its price target to $200.00 from $180.00, maintaining an "outperform" rating. TheStreet revised its rating from "d" to "c-", while Citigroup increased its price objective to $151.00 from $90.00, assigning a "neutral" rating. Piper Sandler raised its price target to $165.00 from $125.00, also with a "neutral" rating. Raymond James upgraded Coinbase Global from "underperform" to "market perform."

Overall, Coinbase Global has received four "sell" ratings, eight "hold" ratings, and nine "buy" ratings from research analysts. MarketBeat.com reports an average rating of "Hold" and an average price target of $131.52.

Key Financial Metrics

Coinbase Global's 50-day moving average stands at $177.35, while its 200-day moving average is $132.55. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.03, and a quick ratio of 1.03. Its market capitalization is $61.90 billion, with a P/E ratio of 946.33 and a beta of 3.36.

Earnings and Revenue Surpass Estimates

Coinbase Global reported quarterly earnings of $1.04 per share on Thursday, February 15th, surpassing analysts' consensus estimate of ($0.09) by $1.13. The company achieved a net margin of 3.05% and a return on equity of 3.54%. Revenue reached $953.80 million, exceeding expectations of $826.10 million. Coinbase Global's revenue has grown by 51.6% year-over-year.

Analysts anticipate Coinbase Global to report earnings per share of 1.68 for the current fiscal year.

Institutional Investors Make Moves

Several institutional investors have recently adjusted their positions in Coinbase Global. Vanguard Group Inc. increased its stake by 19.8% in the third quarter, acquiring 2,110,196 shares, bringing its total holdings to 12,786,266 shares. Norges Bank initiated a new stake in Coinbase Global during the fourth quarter, valued at approximately $50,254,000.

Renaissance Technologies LLC expanded its position by 84.7% in the second quarter, purchasing 1,402,169 shares, resulting in 3,057,000 shares held. Quadrature Capital Ltd established a new stake in Coinbase Global during the second quarter, worth approximately $93,815,000.

Price T Rowe Associates Inc. MD significantly increased its holdings by 741.5% in the fourth quarter, acquiring 1,182,556 shares, bringing its total to 1,342,039 shares. Institutional investors and hedge funds collectively hold 45.96% of Coinbase Global's outstanding shares.

Company Overview

Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy globally. It offers a primary financial account for consumers and a marketplace for institutions to transact in crypto assets.