For a minute there, things were starting to look good again for cryptocurrency stocks. The long crypto winter was starting to break, and prices were coming back up. But all was not well everywhere; just ask Coinbase (NASDAQ:COIN). Coinbase’s volume still isn’t doing all that well, but investors are holding their own, with Coinbase stock up nicely in Thursday afternoon trading.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Bank of America analyst Jason Kupferberg noted that Coinbase’s first quarter 2023 trading volumes look a lot like Coinbase’s fourth quarter 2022 trading volumes. Given how much of Coinbase’s total revenue is directly connected to its trading volumes, that’s not good news. Kupferberg noted that the first quarter of 2023’s transaction volumes came in at about $145 billion. That’s well below consensus estimates that called for $169 billion.
Furthermore, Coinbase also seems to have its share of troubles with regulators these days. Just two days ago, the Securities and Exchange Commission sent a Wells notice Coinbase’s way. That notice notes that there’s a potential that Coinbase violated securities law at some point. Further, a former Coinbase employee is reaching a settlement deal with the SEC over insider trading behavior. That’s comparatively good news, but it doesn’t make Coinbase look much better for it.
Still, regardless of its various troubles, analysts are split on COIN stock. With eight Buys, seven Holds, and seven Sells, analyst consensus comes out to Hold. In addition, thanks to its average price target of $62, Coinbase is essentially fairly valued, according to Wall Street.
