Coastal Financial Corp (NASDAQ:CCB) CEO Eric Sprink has recently sold a significant amount of company stock, according to the latest SEC filings. The transactions, which took place over two days, involved Sprink selling a total of 8,000 shares for an aggregate value exceeding $446,000.
On October 9, 2024, Sprink sold 3,000 shares at a price of $55.00 per share. Two days later, on October 11, he sold an additional 5,000 shares, this time fetching a higher price of $56.29 each. These sales were executed under a pre-arranged 10b5-1 trading plan, which allows company insiders to establish predetermined trading plans for selling stocks.
Following these transactions, Sprink's direct holdings in Coastal Financial Corp have been adjusted to 289,285 shares. Additionally, the SEC filing included footnotes indicating that Sprink's total ownership includes 50,253 time-based restricted stock units under the company's 2018 Omnibus Incentive Plan, with varying vesting schedules. The CEO also holds 100,000 shares in performance-based restricted stock units that are set to vest in 2027, contingent upon the achievement of specified performance goals.
Investors often keep a close eye on insider transactions as they can provide insights into an executive's perspective on the company's future. With Coastal Financial's stock being actively traded by its CEO, market participants may be evaluating what these sales could mean for the company's outlook.
InvestingPro Insights
To provide additional context to CEO Eric Sprink's recent stock sales, let's examine some key financial metrics and insights from InvestingPro for Coastal Financial Corp (NASDAQ:CCB).
According to InvestingPro data, Coastal Financial's market capitalization stands at $763.24 million, with a P/E ratio of 19.96. This valuation comes as the company's stock is trading near its 52-week high, with the current price at 99.39% of that peak. This strong performance is reflected in the stock's impressive returns, with a 15.46% gain over the past month and a substantial 45.94% increase over the last six months.
InvestingPro Tips highlight that Coastal Financial has been profitable over the last twelve months, with analysts predicting continued profitability this year. The company's revenue for the last twelve months as of Q2 2023 was $271.68 million, showing a growth of 5.88%. However, it's worth noting that Coastal Financial does not pay a dividend to shareholders, which may be a consideration for income-focused investors.
While CEO Sprink's stock sales might raise questions, it's important to consider that the company's financials appear solid. The operating income margin for the last twelve months stands at a healthy 18.91%, indicating efficient operations. Additionally, the stock's strong performance across various timeframes suggests ongoing investor confidence.
For readers seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Coastal Financial Corp, providing a deeper dive into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.