Tobi Lutke, Shopify CEO and Founder, continued to buy cryptocurrency exchange Coinbase stock this month. On September 13, Tuesday, Lutke purchased 4,482 shares of Coinbase stock at an average cost of $75.39 per share. The total value of shares is $337,897.98. With this latest transaction, Lutke now directly owns 54,583 shares worth approximately $4,115,012.37.
Lutke, also the director of Coinbase, is not punching in the trades directly. In late May, he formed an automated Rule 10b5-1 trading plan which eliminate any potential bias any insider might have from knowledge of non-public information. After parameters such as timing and price has been set by the insider, transactions are automatically executed. Lutke became Coinbase director in February.
1/ Starting today, Coinbase will begin integrating our crypto policy efforts right into our app. These will help our 103M verified users get educated on the crypto positions held by political leaders where they live. pic.twitter.com/3GqWZIioZQ
— Brian Armstrong (@brian_armstrong) September 14, 2022
According to the filings with the Securities and Exchange Commission, from August 23 through September 13, the plan paid $1.5 million for 21,130 Coinbase shares in four transactions. All the purchases were through an investment vehicle that now has a total of 54,583 Coinbase shares. Shopify CEO now owns 522 more Coinbase stock in a personal account. In two transactions made earlier in August, Lutke bought $746,436 of Coinbase stock.
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Tobi Lutke’s Latest Purchases
Lately, Shopify CEO made following trades:
- September 7: 5,894 shares of Coinbase purchased at an average price of $62.00 per share. The total value of shares is $365,428.00.
- August 30: 5,577 shares of Coinbase Global stock bought at an average cost of $67.95 per share. The total value is $378,957.15.
- August 23: 5,177 shares of Coinbase stock purchased at an average cost of $71.94 per share. The total value is $372,433.38.
- August 16: Lutke purchased 4,023 shares of Coinbase Global stock for a total transaction of $364,282.65. The average price of stock was $90.55 per share.
- August 11: Lutke acquired 3,930 shares of Coinbase at an average price of $97.24 per share. The total transaction was of $382,153.20.
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Coinbase Global Performance
This year, Coinbase stock has plummeted around 70 percent due to tumbling valuations of cryptocurrencies including Bitcoin. However, recently J.P. Morgan analyst Kenneth B. Worthington raised his price target from $78 from $64 on Coinbase stock. Keeping the neutral rating, the analyst stated that the company has “substantial revenue opportunity that originates from higher interest rates”.
The fifty-two-week low of Coinbase Global, Inc. is of $40.83 and fifty-two-week high is of $368.90. The fifty-day moving average of Coinbase is $71.54 and a 200-day moving average is of $100.44. It has debt-to-equity ratio of 0.58, current ratio of 1.06 and a quick ratio of 1.06.
Why did BTC, ETH, the NASDAQ, and S&P all peak at the tail end of 2021?
— Coinbase (@coinbase) June 9, 2022
The crypto market downturn explained: https://t.co/fYcsPKTwtA pic.twitter.com/oknMJuiRMR
The company announced its last quarterly earnings results on August 9, Tuesday, reporting $4.95 earnings per share for the quarter. It missed the consensus estimate of $3.04 by $1.91. The firm had a negative net margin of 4.79% and a negative return on equity of 4.61%. The revenue reported during the quarter was of $808.33 million as compared to the expectations of $877.32 million.
The stock of Coinbase has earned sell rating by two equities research analysts. While six have rated it with a hold rating, sixteen have reassigned a buy rating. According to MarketBeat.com, at present, Coinbase’s average rating is “Moderate Buy” with an average target price of $164.14.
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About Coinbase
Established in June 2012 by Brian Armstrong and Fred Ehrsam, Coinbase Global, Inc was founded in San Francisco, California in the United States. The company offers financial infrastructure and technology for the crypto economy in the US and across the globe.
Ready to level-up your trades? Us too!
— Coinbase (@coinbase) August 15, 2022
Advanced Trade is now available to everyone in the Coinbase mobile app. 📈📱
Check out the 🧵 for more info…👇 pic.twitter.com/pdofRHVS5e
In June 2022, Coinbase announced reduction of 18 percent of its total workforce, accounting to a total of 1,100 employees. Declining crypto prices and over-hiring were cited as the reasons behind the layoffs by CEO Armstrong. However, according to a report published by BanklessTimes.com, hiring at Coinbase has increased 33 percent despite the layoffs.
