1 Crypto Stock You'll Want to Sell, Liquidate, or Avoid This Week
Cryptocurrency exchange Coinbase Global (COIN) has had a rough year with insider trading charges against a former employee and an SEC investigation into trading in unregistered securities on its platform. The stock is down more than 75% since the start of the year and could continue its downtrend given its weak financials and unfavorable analyst estimates. Keep reading….
shutterstock.com - StockNewsThe problems seem far from over for cryptocurrency exchange Coinbase Global, Inc. (COIN). After the SEC announced insider trading charges against a former COIN employee, the company was investigated over whether it allowed US users to trade unregistered securities.
COIN offers retailers the premier financial account for the crypto economy, a marketplace with a pool of liquidity to transact crypto assets for institutions, and technology and services that enable partners to ecosystem to build crypto-based applications and securely accept crypto assets. payments.
On July 21, 2022, the SEC announced insider trading charges against former COIN employee Ishan Wahi, accusing him of leaking information to his brother Nikhil Wahi and friend Sameer Ramani that COIN would list at least 25 crypto assets to trade on its platform. .
Just before the COIN announcement, the former employee's brother and a friend bought the tokens and sold them with a profit of $1.10 million right after the official listing. The trio are also facing wire fraud charges. The agency has not alleged any wrongdoing on the part of COIN.
On July 21, 2022, the SEC claimed that nine of the 25 tokens allegedly traded in the insider trading scheme were securities. The company was then hit by an SEC investigation into whether it allowed its users to trade digital assets that were not registered as securities.
COIN's Chief Legal Officer, Paul Grewal, said, "We are confident that our rigorous due diligence process - a process that the SEC has previously reviewed - keeps securities off our platform, and we look forward to a dialogue. with the SEC about this."< /p>
COIN stock price is down 75.1% year-to-date and 73.5% over the past year to close the last trading session at $62.70.
Here's what could influence COIN's performance in the coming months:
Disappointing finances
Total COIN revenue decreased 35.2% year-over-year to $1.16 billion for the first quarter ended March 31, 2022. The operating loss of the company was $554.46 million, compared to an operating profit of $987.71 million.
Its net loss was $429.65 million, compared to a net profit of $771.46 million the previous year. Additionally, its loss per share was $1.98, compared to EPS of $3.05 a year ago. Additionally, its adjusted EBITDA decreased 98.2% year-over-year to $19.68 million.
Unfavorable analyst estimates
Analysts expect COIN's EPS for fiscal 2022 and 2023 to remain negative. Its fiscal 2022 revenue is expected to decline 50.3% year-over-year to $3.89 billion.
Mixed evaluation
In terms of EV/EBITDA over the last 12 months, COIN's 3.92x is 59.9% below the industry average of 9.78x. Likewise, its trailing 12-month EV/EBIT of 4.03x is 68.8% below the industry average of 12.92x.
However, the stock's forward EV/S of 3.08x is 10% higher than the industry average of 2.80x. Additionally, its forward P/B of 2.95x is 147.9% above the industry average of 1.19x.
POWR ratings reflect gloomy outlook
COIN has an overall rating of D, which is equivalent to Sell in our POWR rating system. POWR ratings are calculated by considering 118 separate factors, with each factor weighted to an optimal degree.
Our proprietary scoring system also rates each stock against eight distinct categories. COIN has an F rating for Sentiment, in sync with unfavorable analyst estimates.
It has an F rating for growth, which matches its poor financial results. In addition, its mixed valuation justifies its C rating for Value.
COIN is ranked #130 out of 156 in the software - applications industry. Click here to access COIN's dynamic, stability and quality ratings...
Cryptocurrency exchange Coinbase Global (COIN) has had a rough year with insider trading charges against a former employee and an SEC investigation into trading in unregistered securities on its platform. The stock is down more than 75% since the start of the year and could continue its downtrend given its weak financials and unfavorable analyst estimates. Keep reading….
shutterstock.com - StockNewsThe problems seem far from over for cryptocurrency exchange Coinbase Global, Inc. (COIN). After the SEC announced insider trading charges against a former COIN employee, the company was investigated over whether it allowed US users to trade unregistered securities.
COIN offers retailers the premier financial account for the crypto economy, a marketplace with a pool of liquidity to transact crypto assets for institutions, and technology and services that enable partners to ecosystem to build crypto-based applications and securely accept crypto assets. payments.
On July 21, 2022, the SEC announced insider trading charges against former COIN employee Ishan Wahi, accusing him of leaking information to his brother Nikhil Wahi and friend Sameer Ramani that COIN would list at least 25 crypto assets to trade on its platform. .
Just before the COIN announcement, the former employee's brother and a friend bought the tokens and sold them with a profit of $1.10 million right after the official listing. The trio are also facing wire fraud charges. The agency has not alleged any wrongdoing on the part of COIN.
On July 21, 2022, the SEC claimed that nine of the 25 tokens allegedly traded in the insider trading scheme were securities. The company was then hit by an SEC investigation into whether it allowed its users to trade digital assets that were not registered as securities.
COIN's Chief Legal Officer, Paul Grewal, said, "We are confident that our rigorous due diligence process - a process that the SEC has previously reviewed - keeps securities off our platform, and we look forward to a dialogue. with the SEC about this."< /p>
COIN stock price is down 75.1% year-to-date and 73.5% over the past year to close the last trading session at $62.70.
Here's what could influence COIN's performance in the coming months:
Disappointing finances
Total COIN revenue decreased 35.2% year-over-year to $1.16 billion for the first quarter ended March 31, 2022. The operating loss of the company was $554.46 million, compared to an operating profit of $987.71 million.
Its net loss was $429.65 million, compared to a net profit of $771.46 million the previous year. Additionally, its loss per share was $1.98, compared to EPS of $3.05 a year ago. Additionally, its adjusted EBITDA decreased 98.2% year-over-year to $19.68 million.
Unfavorable analyst estimates
Analysts expect COIN's EPS for fiscal 2022 and 2023 to remain negative. Its fiscal 2022 revenue is expected to decline 50.3% year-over-year to $3.89 billion.
Mixed evaluation
In terms of EV/EBITDA over the last 12 months, COIN's 3.92x is 59.9% below the industry average of 9.78x. Likewise, its trailing 12-month EV/EBIT of 4.03x is 68.8% below the industry average of 12.92x.
However, the stock's forward EV/S of 3.08x is 10% higher than the industry average of 2.80x. Additionally, its forward P/B of 2.95x is 147.9% above the industry average of 1.19x.
POWR ratings reflect gloomy outlook
COIN has an overall rating of D, which is equivalent to Sell in our POWR rating system. POWR ratings are calculated by considering 118 separate factors, with each factor weighted to an optimal degree.
Our proprietary scoring system also rates each stock against eight distinct categories. COIN has an F rating for Sentiment, in sync with unfavorable analyst estimates.
It has an F rating for growth, which matches its poor financial results. In addition, its mixed valuation justifies its C rating for Value.
COIN is ranked #130 out of 156 in the software - applications industry. Click here to access COIN's dynamic, stability and quality ratings...
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