Coastal Financial Corp (NASDAQ:CCB) CEO Eric M. Sprink recently sold a significant portion of his company stock, according to a new SEC filing. The transactions, which occurred over a span of two days, involved the sale of 4,103 shares at prices ranging from $51.56 to $51.93 per share, totaling approximately $212,698.
The sales were conducted under a prearranged 10b5-1 trading plan, which allows company insiders to sell stocks at predetermined times to avoid accusations of insider trading. This plan is particularly useful for executives and directors who regularly have access to material non-public information, providing them a way to plan transactions within legal bounds.
In addition to the sales, the SEC filing revealed that Sprink also acquired 4,103 shares through the exercise of stock options at a price of $14.91 per share. The total value for these transactions was $61,175. It's worth noting that these options were part of the Coastal Financial Corp. 2018 Omnibus Incentive Plan, which vests in approximately ten equal installments starting from January 22, 2020.
Following these transactions, Sprink's direct holdings in Coastal Financial Corp have adjusted to a substantial number of shares, which includes time-based and performance-based restricted stock units (RSUs) as detailed in the footnotes of the filing. These RSUs are set to vest over the coming years and represent additional shares that will be granted upon vesting, subject to the achievement of specified performance goals.
For investors, these filings provide insight into the actions of company insiders, which can be a valuable piece of information when assessing a company's stock performance and the confidence level of its leaders in the firm's prospects.
InvestingPro Insights
Coastal Financial Corp (NASDAQ:CCB) has recently seen its CEO, Eric M. Sprink, adjust his holdings in the company through stock sales and option exercises. While this activity is a normal part of executive compensation, investors may be curious about how the company's financial performance aligns with these insider transactions. According to InvestingPro data, Coastal Financial Corp boasts a market capitalization of $700.94 million and a Price to Earnings (P/E) ratio of 18.5, which aligns closely with the adjusted P/E ratio for the last twelve months as of Q2 2024 at 18.69. This suggests a fairly valued company based on its earnings.
Moreover, the company has experienced a revenue growth of 5.88% over the last twelve months as of Q2 2024, indicating a stable increase in its financial performance. Importantly, Coastal Financial Corp has also enjoyed a strong return over the last three months, with a price total return of 17.23%. This positive momentum is further underscored by a significant 39.67% price uptick over the last six months, which aligns with the InvestingPro Tip highlighting the company's large price increase during this period.
Investors should note that Coastal Financial Corp does not pay dividends, as per another InvestingPro Tip, which could be a consideration for those seeking income-generating investments. However, for growth-oriented investors, the company's recent performance and the analysts' prediction of profitability this year, as mentioned in the InvestingPro Tips, might present an attractive opportunity. For additional insights and tips on Coastal Financial Corp, investors can explore the 7 other InvestingPro Tips available on the platform.
With the next earnings date projected for October 24, 2024, and the fair value estimated at $60.5 by analysts, compared to the InvestingPro fair value of $49.37, investors have a range of expectations to consider. As the company trades near its 52-week high, with the price at 96.89% of this peak, it could be an interesting moment to assess Coastal Financial Corp's potential for continued growth or consolidation.
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