Coinbase Global Inc. (COIN) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

Coinbase Global Inc. (NASDAQ: COIN) stock fell -1.25% on Wednesday to $58.36 against a previous-day closing price of $59.10. With 8.11 million shares changed hands, the volume of the stock remained lighter than its average volume of 16.64 million shares. During the session, the Financial Data & Stock Exchanges company that operates in wider Financial sector, reached to the highest price of $58.97 whereas the lowest price it dropped to was $56.60. The 52-week range on COIN shows that it touched its highest point at $116.30 and its lowest point at $31.55 during that stretch. It currently has a 1-year price target of $70.29.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of COIN was down-trending over the past week, with a drop of -4.39%, but this was up by 5.06% over a month. Three-month performance dropped to -6.41% while six-month performance rose 41.55%. The stock lost -11.71% in the past year, while it has gained 64.91% so far this year. A look at the trailing 12-month EPS for COIN yields -11.81 with Next year EPS estimates of -1.81. For the next quarter, that number is -0.75. This implies an EPS growth rate of -181.40% for this year and 0.00% for next year.

Float and Shares Shorts:

At present, 231.49 million COIN shares are outstanding with a float of 178.71 million shares on hand for trading. On Apr 27, 2023, short shares totaled 37.19 million, which was 15.85% higher than short shares on Mar 30, 2023. In addition to COIN as the firm’s Coinbase Global, Inc., CION serves as its CION Investment Corporation.

Institutional Ownership:

Through their ownership of 55.45% of COIN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 6.10% of COIN, in contrast to 27.02% held by mutual funds. Shares owned by individuals account for 27.01%. As the largest shareholder in COIN with 7.29% of the stake, The Vanguard Group, Inc. holds 13,390,659 shares worth 13,390,659. A second-largest stockholder of COIN, ARK Investment Management LLC, holds 11,776,015 shares, controlling over 6.42% of the firm’s shares. Nikko Asset Management Co., Ltd. is the third largest shareholder in COIN, holding 8,610,945 shares or 4.69% stake. With a 4.31% stake in COIN, the ARK Innovation ETF is the largest stakeholder. A total of 7,917,678 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.48% of COIN stock, is the second-largest Mutual Fund holder. It holds 4,558,439 shares valued at 245.2 million. Vanguard Mid Cap Index Fund holds 1.87% of the stake in COIN, owning 3,428,704 shares worth 184.43 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, COIN reported revenue of $808.33M and operating income of -$1.00B. The EBITDA in the recently reported quarter was -$1.13B and diluted EPS was -$4.98.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for COIN since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With COIN analysts setting a high price target of $200.00 and a low target of $27.00, the average target price over the next 12 months is $69.17. Based on these targets, COIN could surge 242.7% to reach the target high and fall by -53.74% to reach the target low. Reaching the average price target will result in a growth of 18.52% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded COIN stock several times over the past three months with 4 Buys and 21 Sells. In these transactions, 89,192 shares were bought while 93,842 shares were sold. The number of buy transactions has increased to 81 while that of sell transactions has risen to 64 over the past year. The total number of shares bought during that period was 699,478 while 464,316 shares were sold.

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