Coinbase Global Inc. [NASDAQ: COIN] loss -3.88% or -9.05 points to close at $224.35 with a heavy trading volume of 7458648 shares. The company report on May 19, 2021 that Coinbase Announces Pricing of Offering of $1.25 Billion of 0.50% Convertible Senior Notes Due 2026.
Coinbase Global, Inc. (“Coinbase”) (Nasdaq: COIN) announced the pricing of $1.25 billion aggregate principal amount of Convertible Senior Notes due 2026 (the “notes”) in a private offering (the “offering”) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act of 1933, as amended (the “Securities Act”). Coinbase also granted the initial purchasers of the notes a 30-day option to purchase up to an additional $187.5 million principal amount of notes, solely to cover over-allotments. The sale of the notes to the initial purchasers is expected to settle on May 21, 2021, subject to customary closing conditions, and is expected to result in approximately $1.22 billion (or approximately $1.40 billion if the initial purchasers exercise their option to purchase additional notes in full) in net proceeds to Coinbase after deducting the initial purchasers’ discounts and commissions and estimated offering expenses payable by Coinbase.
The notes will be senior, unsecured obligations of Coinbase. The notes will accrue interest of 0.50% per year payable semi-annually in arrears. The notes will mature on June 1, 2026, unless earlier repurchased, redeemed or converted. Coinbase may not redeem the notes prior to June 5, 2024. Coinbase may redeem all or any portion of the notes, at its option, on or after June 5, 2024 and on or before the 20th scheduled trading day immediately before the maturity date, if the last reported sale price of Coinbase’s Class A common stock exceeds 130% of the conversion price then in effect on (1) each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the trading day immediately before the date Coinbase sends the related redemption notice; and (2) the trading day immediately before the date Coinbase sends such notice, at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the notes, which means that Coinbase is not required to redeem or retire the notes periodically. Subject to a limited exception, holders of the notes will have the right to require Coinbase to repurchase for cash all or a portion of their notes upon the occurrence of a fundamental change (as defined in the indenture governing the notes) at a purchase price of 100% of their principal amount plus any accrued and unpaid interest.
If we look at the average trading volume of 12.82M shares, COIN reached to a volume of 7458648 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Coinbase Global Inc. [COIN]:
Wedbush have made an estimate for Coinbase Global Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on May 20, 2021. While these analysts kept the previous recommendation, Piper Sandler raised their target price to Overweight. The new note on the price target was released on May 14, 2021, representing the official price target for Coinbase Global Inc. stock. Previously, the target price had yet another raise to $325, while Compass Point analysts kept a Neutral rating on COIN stock.
The Average True Range (ATR) for Coinbase Global Inc. is set at 22.91, with the Price to Sales ratio for COIN stock in the period of the last 12 months amounting to 16.86.
Trading performance analysis for COIN stock
Coinbase Global Inc. [COIN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -13.17.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for the last a single of trading hit 28.01, and the three-weeks RSI is set at 30.96 for Coinbase Global Inc. [COIN], while it was recorded at 233.96 for the last single week of trading.
Coinbase Global Inc. [COIN]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Coinbase Global Inc. [COIN] shares currently have an operating margin of +32.01 and a Gross Margin at +89.39. Coinbase Global Inc.’s Net Margin is presently recorded at +8.47.
Return on Total Capital for COIN is now 28.94, given the latest momentum, and Return on Invested Capital for the company is 7.80. Return on Equity for this stock inclined to 14.82, with Return on Assets sitting at 2.63. When it comes to the capital structure of this company, Coinbase Global Inc. [COIN] has a Total Debt to Total Equity ratio set at 69.56. Additionally, COIN Total Debt to Total Capital is recorded at 41.02, with Total Debt to Total Assets ending up at 11.45. Long-Term Debt to Equity for the company is recorded at 66.94, with the Long-Term Debt to Total Capital now at 39.48.
Reflecting on the efficiency of the workforce at the company, Coinbase Global Inc. [COIN] managed to generate an average of $86,674 per employee. Receivables Turnover for the company is 9.09 with a Total Asset Turnover recorded at a value of 0.31.Coinbase Global Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.20.
An analysis of insider ownership at Coinbase Global Inc. [COIN]
Positions in Coinbase Global Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 1 institutional holders increased their position in Coinbase Global Inc. [NASDAQ:COIN] by around 400 shares. Additionally, 0 investors decreased positions by around 0 shares, while 0 investors held positions by with 0 shares. The mentioned changes placed institutional holdings at 400 shares, according to the latest SEC report filing. COIN stock had 1 new institutional investments in for a total of 400 shares, while 0 institutional investors sold positions of 0 shares during the same period.