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Coastal Financial Corp (CCB) stock has reached an unprecedented peak, setting an all-time high of $93.47. With a market capitalization of $1.38 billion, the company maintains a "GREAT" financial health score according to InvestingPro analysis. This milestone underscores a period of robust growth for the company, reflecting investor confidence and a strong financial performance. Over the past year, Coastal Financial Corp has witnessed a remarkable surge in its stock value, with a 1-year change showing an impressive gain of 141.25%. Trading at a P/E ratio of 30.08, the stock appears overvalued compared to its Fair Value. This significant uptrend highlights the company’s successful strategies and its ability to adapt and thrive in the dynamic financial sector. Discover 12 additional key insights about CCB with an InvestingPro subscription.
In other recent news, Coastal Financial Corporation reported fourth-quarter earnings that exceeded Wall Street’s expectations, prompting Raymond (NSE:RYMD) James to increase its price target for the company from $88.00 to $100.00 while maintaining a Strong Buy rating. This revision was influenced by Coastal Financial’s unique credit strategy, which resulted in 97.9% of net charge-offs being covered by partners. Additionally, Coastal Financial announced a public stock offering to support its growth initiatives, with Keefe, Bruyette & Woods and Hovde Group leading the effort. This move is expected to provide the bank with resources to accelerate earnings growth, as noted by Keefe, Bruyette & Woods, who also raised their price target to $96.00 from $92.00 and maintained an Outperform rating.
The bank’s strategic actions include signing letters of intent with three new national partners, indicating potential growth in its balance sheet. Despite a reduction in the net interest margin forecast, Raymond James anticipates that the Banking-as-a-Service (BaaS) margin will continue to expand. Coastal Financial’s recent capital raise is seen as a positive development, equipping the bank to strengthen its position in the digital banking sector. Analysts project significant earnings growth for the bank, with expectations of over 170% EPS growth from 2024 to 2026. Coastal Financial’s ongoing efforts to enhance its risk and compliance infrastructure are also expected to support this growth trajectory.
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