Bessemer Group Inc. has significantly increased its investment in Coinbase Global, Inc. (NASDAQ: COIN), boosting its holdings by 672.2% during the second quarter of 2023. According to a recent disclosure with the Securities and Exchange Commission, the firm now owns 1,166 shares of the cryptocurrency exchange, valued at approximately $408,000.
This surge in investment comes as Coinbase attracts interest from various institutional investors. For example, Ashton Thomas Private Wealth LLC initiated a new position in Coinbase valued at around $281,000 during the same quarter. Additionally, OVERSEA CHINESE BANKING Corp Ltd increased its stake by 198.0%, acquiring 4,240 shares worth $1,568,000 after purchasing an additional 2,817 shares.
Delta Investment Management LLC also entered the market with 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 $21.27 million. Nisa Investment Advisors LLC increased its investment by 29.9%, now owning 30,336 shares valued at $10.63 million. Currently, institutional investors and hedge funds hold 68.84% of Coinbase’s stock.
Coinbase’s Market Performance and Financial Results
As of the latest trading session, Coinbase’s stock opened at $343.78. The company has a market capitalization of $88.33 billion, a price-to-earnings ratio of 29.74, and a notable beta of 3.67. The firm’s quick ratio and current ratio stand at 2.40, while its debt-to-equity ratio is 0.37. Over the past year, Coinbase’s stock has fluctuated between a low of $142.58 and a high of $444.64.
On October 30, 2023, Coinbase released its quarterly earnings, reporting earnings per share of $1.44, which exceeded analysts’ expectations of $1.04. The company recorded a net margin of 41.99% and a return on equity of 15.70%. Revenue for the quarter reached $1.87 billion, surpassing the consensus estimate of $1.77 billion, marking a year-over-year revenue increase of 55.1%.
Analysts project that Coinbase will post earnings per share of $7.22 for the current year, reflecting ongoing confidence in the company’s performance.
Analyst Ratings and Insider Transactions
In recent evaluations, several research firms have updated their ratings for Coinbase. Williams Trading established a price target of $405.00, while Rosenblatt Securities adjusted its target from $470.00 to $450.00 with a “buy” rating. BTIG Research raised its price target from $410.00 to $420.00, maintaining a “buy” status for the stock. Conversely, JPMorgan Chase & Co. lowered its target from $404.00 to $399.00, while Compass Point reduced its target from $277.00 to $266.00.
The consensus rating for Coinbase currently stands at “Moderate Buy,” with one analyst recommending a Strong Buy, seventeen advising a Buy, nine suggesting a Hold, and one issuing a Sell rating.
In related insider transactions, Paul Grewal, an insider at Coinbase, sold 10,000 shares on October 1, 2023, for a total of $3,458,800. Following this sale, Grewal retained ownership of 82,328 shares, valued at approximately $28.48 million. CEO Brian Armstrong also sold 25,000 shares on October 13, 2023, generating $9,033,000. After this transaction, Armstrong owned just 526 shares of the company.
Insider sales over the past three months totaled 180,657 shares, valued at approximately $59.55 million, with corporate insiders owning 23.43% of the company’s stock.
Coinbase Global, Inc. continues to serve as a key player in the cryptocurrency sector, providing essential financial infrastructure and technology for the crypto economy both in the United States and internationally.
