Bessemer Group Inc. significantly increased its stake in Coinbase Global, Inc. (NASDAQ: COIN) during the second quarter of 2023, raising its holdings by an impressive 672.2%. According to a recent disclosure with the Securities and Exchange Commission, Bessemer now owns 1,166 shares of the cryptocurrency exchange, following the acquisition of an additional 1,015 shares during the quarter. As of the end of this reporting period, Bessemer’s holdings in Coinbase were valued at approximately $408,000.
In addition to Bessemer, several other institutional investors have also made moves in Coinbase’s stock. Ashton Thomas Private Wealth LLC established a new position valued at around $281,000 during the same quarter. Meanwhile, OVERSEA CHINESE BANKING Corp Ltd increased its holdings by 198.0%, now owning 4,240 shares valued at $1,568,000 after acquiring an additional 2,817 shares.
Delta Investment Management LLC also entered the fray, acquiring a new stake valued at approximately $287,000, while Envestnet Asset Management Inc. raised its holdings by 18.0%, bringing its total to 60,692 shares worth $21,272,000. Lastly, Nisa Investment Advisors LLC increased its stake by 29.9%, now owning 30,336 shares valued at $10,632,000. Altogether, institutional investors and hedge funds account for 68.84% of Coinbase’s total shares.
Coinbase’s Performance and Analyst Insights
Coinbase’s stock opened at $343.78 on Monday, with a market capitalization of $88.33 billion. The firm has a price-to-earnings ratio of 29.74 and a beta of 3.67. It has seen significant fluctuations in the past year, with a low of $142.58 and a high of $444.64. The company’s fifty-day simple moving average stands at $333.43, while the 200-day average is $307.43.
On October 30, 2023, Coinbase reported quarterly earnings, showing $1.44 earnings per share, surpassing the consensus estimate of $1.04 by $0.40. The firm recorded a net margin of 41.99% and a return on equity of 15.70%. Revenue for the quarter reached $1.87 billion, exceeding the expected $1.77 billion and representing a 55.1% increase year-over-year. Analysts predict Coinbase will report an earnings per share of 7.22 for the current fiscal year.
Various research firms have recently updated their outlook on Coinbase. Williams Trading set a price target of $405.00, while Rosenblatt Securities lowered their target from $470.00 to $450.00, maintaining a “buy” rating. BTIG Research increased their target from $410.00 to $420.00 with a “buy” rating. Conversely, JPMorgan Chase & Co. adjusted their target down from $404.00 to $399.00 but retained an “overweight” rating. One equity research analyst has given Coinbase a Strong Buy rating, while others have issued a mix of Buy and Hold ratings, culminating in a consensus rating of “Moderate Buy” with a target price of $398.91.
Insider Transactions and Company Overview
In related news, insider Paul Grewal sold 10,000 shares on October 1, 2023, at an average price of $345.88, totaling approximately $3,458,800.00. Following this transaction, Grewal retained 82,328 shares, valued at about $28,475,608.64. The sale decreased his ownership by 10.83%. Similarly, 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 sale, Armstrong’s ownership fell to just 526 shares, valued at approximately $190,054.32. Over the past three months, insiders have sold a total of 180,657 shares valued at $59,552,326, while corporate insiders hold 23.43% of the company’s stock.
Coinbase Global, Inc. is recognized for providing financial infrastructure and technology for the cryptocurrency economy both in the United States and internationally. The company delivers primary financial accounts for consumers in the crypto economy and operates a marketplace that facilitates transactions in crypto assets for institutions.
