Frederick Ernest Ehrsam III, one of Coinbase Global’s Directors (NASDAQ:COIN), recently bought the company’s shares worth $50 million. The cryptocurrency exchange platform provides end-to-end financial infrastructure and technology for the crypto economy.
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
It is worth mentioning that Ehrsam founded Coinbase with CEO Brian Armstrong. Later, he established Paradigm, an investment firm that focuses on cryptocurrency and Web 3.0 opportunities.
As per the SEC filing, Eshram bought 810,000 shares of the company at a weighted average price of $61.77 per share on May 9 and May 10. Following the latest purchase, the total value of COIN shares in his portfolio now stands at $353.9 million.
According to TipRanks’ data, Ehrsam has had a 63% success rate in his eight transactions over the past year, with an average return of 28.9% per transaction.
Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Insider Buy Follows Q1 Results
Strikingly, the transactions occurred after Coinbase reported better-than-expected first-quarter earnings on May 4. Transactions of top insiders can provide investors with their perception of the company’s performance going forward.
Following Q1 earnings results, about six Wall Street analysts on TipRanks reiterated their Buy rating on Coinbase stock, while six maintained a Sell rating.
Is COIN a Good Stock to Buy?
Overall, COIN stock has a Hold consensus rating on TipRanks. This is based on eight Buy, nine Hold, and seven Sell recommendations. The average price target of $60.18 implies 0.28% downside potential.
Supporting the insiders’ stance, hedge funds have also increased their holdings of the stock. In the last quarter, hedge funds bought 980.8K shares of COIN.
