Coastal Financial Corp (NASDAQ:CCB) CEO Eric M. Sprink has sold a total of 13,000 shares of the company's common stock in a series of transactions, with the total value exceeding $680,000. The transactions occurred between October 3 and October 7, with share prices ranging from $52.01 to $53.09.
On October 3, Sprink sold 5,000 shares at a price of $52.01 per share. The following day, he sold an additional 2,000 shares, this time at a higher price of $52.90 per share. The series of sales concluded on October 7 with the largest transaction, in which Sprink sold 6,000 shares at a price of $53.09 each.
Following these transactions, Sprink's direct holdings in Coastal Financial Corp have decreased, but he still maintains a significant stake in the company. Notably, the sales were conducted in accordance with a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times and prices to avoid accusations of insider trading.
Investors may also find it relevant that Sprink's holdings include time-based and performance-based restricted stock units (RSUs) under the company's 2018 Omnibus Incentive Plan, which will vest in installments over the coming years, contingent upon the achievement of specific performance goals.
While the CEO's recent stock sales are substantial, it's important for investors to consider the context provided by the trading plan and the remaining equity stake held by Sprink. As with all insider transactions, these sales provide data points for investors to consider as part of their broader analysis of the company's financial health and future prospects.
InvestingPro Insights
Adding context to CEO Eric M. Sprink's recent stock sales, Coastal Financial Corp (NASDAQ:CCB) has been performing strongly in the market. According to InvestingPro data, the company's stock is trading near its 52-week high, with a robust 21.53% price return over the last three months and an impressive 37.57% return over the past six months.
The company's financial health appears solid, with InvestingPro Tips indicating that Coastal Financial Corp has been profitable over the last twelve months and analysts predict continued profitability this year. This positive outlook is reflected in the company's P/E ratio of 18.77, suggesting investors are willing to pay a premium for CCB's earnings.
Despite the strong performance, it's worth noting that Coastal Financial Corp does not pay a dividend to shareholders, which may be a consideration for income-focused investors. Additionally, one InvestingPro Tip points out that the company suffers from weak gross profit margins, which could be an area for potential improvement.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Coastal Financial Corp, providing a deeper dive into the company's financial health and market position.
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