Eric Sprink, CEO of Coastal Financial Corp (NASDAQ:CCB), has sold a total of $258,832 worth of common stock over the past week, according to a recent SEC filing. The transactions occurred over three days, with Sprink selling 3,705 shares on October 23 at $60.01 per share, 446 shares on October 24 at $60.35 per share, and 159 shares on October 25 at $60.25 per share.
Following these transactions, Sprink holds 275,078 shares directly. Additionally, he maintains ownership of 400 shares each through custodianships for three children. These sales were conducted under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks.
InvestingPro Insights
While Eric Sprink's recent stock sales have caught investors' attention, it's crucial to consider Coastal Financial Corp's (NASDAQ:CCB) broader financial picture. According to InvestingPro data, CCB's market capitalization stands at $786.52 million, with a price-to-earnings ratio of 20.72. This valuation comes amid a strong performance, as evidenced by the company's 41.9% price total return over the past six months.
InvestingPro Tips highlight CCB's profitability over the last twelve months and analysts' predictions for continued profitability this year. These factors may provide context for Sprink's decision to sell shares, possibly as part of a diversification strategy rather than a lack of confidence in the company's prospects.
Despite the recent insider selling, CCB has demonstrated robust growth with a 7.48% quarterly revenue increase in Q2 2024. The company's operating income margin of 18.91% for the last twelve months also suggests efficient operations. However, one InvestingPro Tip notes that CCB suffers from weak gross profit margins, which investors should monitor.
For those seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for CCB, providing deeper insights into the company's financial health and market position. These additional tips can help investors make more informed decisions in light of recent insider activity.
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