Steven Hovde, a prominent director and ten percent owner of Coastal Financial Corp (NASDAQ:CCB), has recently sold a portion of his holdings in the company. Over the course of two days, Hovde disposed of a total of 2,389 shares, resulting in proceeds exceeding $127,000.
The transactions took place on September 19 and 20, with shares sold at prices ranging from $53.51 to $53.89. On the first day, Hovde sold 2,050 shares at the lower end of this range, followed by a sale of 339 shares at the higher price the next day. After these sales, Hovde's direct holdings in Coastal Financial Corp reduced to 21,611 shares.
These sales reflect a routine change in Hovde's investment in the company and are part of the regular disclosure of stock transactions by company insiders. It is worth noting that, as per the latest SEC filing, Hovde still retains a significant stake in Coastal Financial Corp, including restricted stock that is set to vest prior to the company's 2025 Annual Shareholder Meeting.
Investors often monitor insider transactions, such as those made by Hovde, for insights into executive sentiment regarding their company's stock. While such sales and purchases are common and can be influenced by a variety of factors, they are required to be reported to maintain transparency and ensure fair trading practices.
For those interested in the finer details of these transactions, the SEC Form 4, which insiders must file to report changes in their company holdings, provides a complete record of such trades. This document is publicly available and offers a comprehensive look at the buying and selling activities of company executives and major shareholders.
InvestingPro Insights
As Coastal Financial Corp (NASDAQ:CCB) sees notable insider transactions, investors are keeping a close eye on the company's performance metrics. The latest data from InvestingPro provides a snapshot of how the company stands in the current financial landscape.
With a market capitalization of $694.35 million, Coastal Financial Corp is maintaining a P/E ratio of 18.33, indicating investor sentiment on its earnings capacity. Interestingly, despite weak gross profit margins, the company has shown resilience with a strong return over the last three months, as evidenced by a 19.63% price total return in that period. This aligns with the InvestingPro Tip that the company has had a large price uptick over the last six months, boasting a 38.9% return.
Looking at the company's earnings, the data reveals a stable financial position, with an operating income margin of 18.91% for the last twelve months as of Q2 2024. This profitability is further supported by the analysts' predictions, as noted in another InvestingPro Tip, which forecast that Coastal Financial Corp will be profitable this year. Moreover, the company has been profitable over the last twelve months, which may have contributed to the confidence reflected in the recent insider transactions.
It's also worth noting that Coastal Financial Corp does not pay a dividend to shareholders, which can be a strategic decision to reinvest earnings back into the company for growth. For investors seeking additional insights, there are more InvestingPro Tips available on the company's profile, which could further inform investment decisions. To explore these tips and gain a deeper understanding of Coastal Financial Corp's potential, visit https://www.investing.com/pro/CCB.
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