Steven Hovde Sells Over $127K in Coastal Financial Corp Shares

Steven Hovde, a well-known director and ten percent owner of Coastal Financial Corp, has recently decreased his holdings in the company. Over two days, Hovde sold a total of 2,389 shares, earning more than $127,000 from the transactions.

The shares were sold on September 19 and 20, with the sale prices ranging from $53.51 to $53.89. On the first day, Hovde sold 2,050 shares at the lower end of that range, and the next day, he sold 339 shares at the higher price. Following these transactions, Hovde’s direct holdings in Coastal Financial Corp decreased to 21,611 shares.

These sales are part of typical adjustments in Hovde’s investment strategy and are consistent with the ongoing disclosure requirements for stock transactions by company insiders. Despite these sales, Hovde still holds a substantial stake in the company, which includes restricted stock that will vest before the company’s 2025 Annual Shareholder Meeting.

Investors often pay close attention to insider trades like Hovde’s for indications of executive confidence in the company’s stock. While such transactions occur for various reasons, they are mandatory to report, ensuring transparency and fair trading practices.

For detailed information regarding these transactions, the SEC Form 4 must be filed by insiders to record any changes in their holdings, and this document is publicly accessible, providing a thorough overview of executive trading activities.

As Coastal Financial Corp experiences notable insider transactions, investors are also scrutinizing the company’s financial performance. The latest financial metrics indicate a market capitalization of $694.35 million and a P/E ratio of 18.33, reflecting the market’s outlook on its earnings potential. Despite facing pressure with low gross profit margins, the company has demonstrated resilience with a 19.63% total return over the past three months, alongside a remarkable 38.9% price increase over the last six months.

The company’s earnings data portrays a stable financial outlook, with an operating income margin of 18.91% reported for the past twelve months as of the second quarter of 2024. Analysts predict profitability for Coastal Financial Corp this year, corroborated by the company’s performance over the previous twelve months, likely instilling confidence in recent insider transactions.

Interestingly, Coastal Financial Corp does not distribute dividends to shareholders, which might be a strategic choice aimed at reinvesting profits back into the business for growth. Investors seeking further insights can find additional analysis and tips regarding the company’s outlook, aiding in informed investment decisions.

This article was produced with the assistance of AI and reviewed by an editor.