Bessemer Group Inc. has significantly increased its investment in Coinbase Global, Inc. (NASDAQ: COIN), raising its holdings by an impressive 672.2% during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission, Bessemer now owns 1,166 shares of the cryptocurrency exchange, having acquired an additional 1,015 shares in the period. The total value of Bessemer’s stake in Coinbase is approximately $408,000 as of the end of the reporting period.
Other institutional investors have also been active in the cryptocurrency market. Ashton Thomas Private Wealth LLC established a new position in Coinbase valued at around $281,000 during the same quarter. OVERSEA CHINESE BANKING Corp Ltd increased its holdings by 198.0%, now owning 4,240 shares valued at $1,568,000 after purchasing an additional 2,817 shares. Delta Investment Management LLC acquired a new stake estimated at $287,000, while Envestnet Asset Management Inc. raised its holdings by 18.0%, bringing its total to 60,692 shares worth $21.27 million. Nisa Investment Advisors LLC bolstered its stake by 29.9%, now owning 30,336 shares valued at $10.63 million. Overall, institutional investors and hedge funds collectively hold 68.84% of Coinbase’s stock.
Coinbase’s Financial Performance and Stock Analysis
On October 30, 2023, Coinbase Global announced its quarterly earnings, reporting $1.44 earnings per share, exceeding the consensus estimate of $1.04 by $0.40. The firm achieved a net margin of 41.99% and a return on equity of 15.70%, with revenue reaching $1.87 billion, surpassing analyst expectations of $1.77 billion. This represents a remarkable 55.1% increase in revenue compared to the same period last year, where earnings per share were only $0.28.
As of the latest trading session, COIN stock opened at $343.78 and has a market capitalization of $88.33 billion. The company maintains a price-to-earnings ratio of 29.74 and a beta of 3.67. Coinbase has experienced a 12-month low of $142.58 and a high of $444.64, with its fifty-day simple moving average at $333.43 and a 200-day average at $307.43.
Analysts have expressed varied opinions on Coinbase’s stock. Research firm Williams Trading set a price objective of $405.00, while Rosenblatt Securities adjusted its target from $470.00 to $450.00, maintaining a “buy” rating. BTIG Research raised its price target from $410.00 to $420.00 with a “buy” rating. Conversely, JPMorgan Chase & Co. reduced its target from $404.00 to $399.00, but also assigned an “overweight” rating. Compass Point lowered its price target from $277.00 to $266.00. Currently, one analyst rates the stock as a Strong Buy, seventeen as Buy, nine as Hold, and one as Sell, resulting in a consensus rating of “Moderate Buy” with a target price of approximately $398.91.
Insider Transactions and Company Overview
In recent insider transactions, Paul Grewal, a company insider, sold 10,000 shares on October 1, 2023, at an average price of $345.88, totaling $3,458,800.00. Following this sale, Grewal owned 82,328 shares, valued at approximately $28.48 million, marking a 10.83% decrease in ownership. Additionally, CEO Brian Armstrong sold 25,000 shares on October 13, 2023, at an average price of $361.32, generating $9,033,000.00. After this transaction, Armstrong held only 526 shares, worth around $190,054.32, reflecting a substantial 97.94% decrease in ownership.
Over the last three months, insiders have sold a total of 180,657 shares, valued at $59.55 million. Corporate insiders now own 23.43% of Coinbase’s stock.
Coinbase Global, Inc. specializes in providing financial infrastructure and technology for the cryptocurrency economy, catering to both individual consumers and institutional investors. The firm offers a primary financial account for cryptocurrency transactions and a marketplace for trading crypto assets. As the cryptocurrency market continues to evolve, Coinbase’s strategic positioning and recent financial performance are critical indicators of its future trajectory.
