Exploring Coastal Financial Corporation (CCB) Investor Profile: Who’s Buying and Why?

Have you ever wondered who is investing in Coastal Financial Corporation (CCB) and what's driving their interest? With institutional ownership at 66.90% and a total value of holdings reaching $794 million, understanding the investor profile can provide valuable insights into the company's potential and stability.

Major players like T. Rowe Price Investment Management, Inc., holding 1,322,325 shares as of December 31, 2024, and BlackRock, Inc., with 1,069,693 shares, significantly shape the investment landscape of CCB. Furthermore, the bank announced a $98.0 million capital raise during the fourth quarter of 2024, priced at $71.00 per share, to support the growth of the Bank including in its CCBX segment. Let's delve into who these investors are and why they are betting on Coastal Financial Corporation, especially with its impressive 51.6% increase in BaaS program fee income, reaching $20.1 million for the year ended December 31, 2024.

Coastal Financial Corporation (CCB) Who Invests in Coastal Financial Corporation (CCB) and Why?

Understanding the investor profile of Coastal Financial Corporation (CCB) involves examining the various types of investors who hold the company's stock and their motivations. This insight can be valuable for current and potential investors, as it provides a glimpse into the market's sentiment and expectations regarding CCB.

Key Investor Types:

The investor base of Coastal Financial Corporation (CCB) is composed of a mix of retail investors, institutional investors, and potentially hedge funds. Each group has different investment horizons, risk tolerances, and strategies.

• Retail Investors: These are individual investors who buy and sell shares for their own accounts. They might be attracted to CCB due to its local presence, community bank model, or dividend payouts.
• Institutional Investors: These include mutual funds, pension funds, insurance companies, and other large entities that invest on behalf of their clients. Their investment decisions are often based on in-depth research and analysis.
• Hedge Funds: These are investment partnerships that use more aggressive strategies, such as leveraging or short-selling, to generate higher returns. Their presence in CCB's investor base might indicate a belief in short-term opportunities or mispricing.

Investment Motivations:

Several factors might attract investors to Coastal Financial Corporation (CCB):

• Growth Prospects: Investors may see potential in CCB's expansion strategy, loan portfolio growth, or increasing market share in its operating regions.
• Dividends: CCB's dividend policy could be attractive to income-seeking investors, especially in a low-interest-rate environment.
• Market Position: CCB's established presence in its local markets and its reputation for customer service might be seen as a competitive advantage.

Investment Strategies:

The strategies employed by CCB investors can vary widely:

• Long-Term Holding: Many institutional investors and some retail investors may adopt a long-term holding strategy, believing in CCB's sustained growth and stability.
• Short-Term Trading: Hedge funds and some active traders might engage in short-term trading, seeking to profit from price fluctuations or specific events.
• Value Investing: Value investors may see CCB as undervalued based on its assets, earnings, or other fundamental metrics.

To provide a clearer picture, here's a hypothetical breakdown of CCB's investor composition. Note that this is an example and not based on publicly available real-time data for Coastal Financial Corporation (CCB):

Understanding who invests in Coastal Financial Corporation (CCB) and why can offer valuable insights into the market's perception of the company. While specific data on investor types and their strategies may not always be readily available, analyzing ownership trends and institutional holdings can provide clues. Always consider multiple factors and consult with a financial professional before making investment decisions.

For more insights into the financial health of Coastal Financial Corporation (CCB), check out: Breaking Down Coastal Financial Corporation (CCB) Financial Health: Key Insights for Investors

Coastal Financial Corporation (CCB) Institutional Ownership and Major Shareholders of Coastal Financial Corporation (CCB)

Institutional investors play a significant role in Coastal Financial Corporation (CCB). As of April 16, 2025, 366 institutional owners and shareholders have filed 13D/G or 13F forms with the Securities and Exchange Commission (SEC), holding a total of 11,928,498 shares.

Here’s a list of the top institutional investors in Coastal Financial Corporation (CCB) based on recent filings:

• T. Rowe Price Investment Management, Inc.
• BlackRock, Inc.
• Vanguard Group Inc.
• Wellington Management Group LLP
• Dimensional Fund Advisors LP

Major shareholders can include individual investors, mutual funds, hedge funds, or institutions. Forms Schedule 13D indicates that the investor holds (or held) more than 5% of the company and intends (or intended) to actively pursue a change in business strategy. Schedule 13G indicates a passive investment of over 5%.

Examining recent changes in institutional ownership can provide insights into the sentiment of sophisticated investors. For example, Wellington Management Group LLP significantly increased its holdings, while Endeavour Capital Advisors Inc. reduced its stake.

Here's a summary of changes in positions by some major institutional investors as of December 31, 2024:

• T. Rowe Price Investment Management, Inc. held 1,322,325 shares.
• Blackrock, Inc. held 1,069,693 shares, a decrease of 47,702 shares.
• Vanguard Group Inc. held 685,385 shares, an increase of 70,272 shares.
• Wellington Management Group LLP held 456,887 shares, an increase of 417,767 shares.
• Endeavour Capital Advisors Inc. held 455,229 shares, a decrease of 293,176 shares.

Institutional investors can significantly influence a company's stock price through large volume trading. Their investment decisions can also impact a company's strategy, as a substantial ownership stake may allow them to exert influence on corporate governance and policy.

Approximately 47.33% of Coastal Financial Corporation's stock is owned by Institutional Investors.

Coastal Financial Corporation completed a $98.0 million common equity raise during the fourth quarter of 2024, priced at $71.00 per share. The proceeds are intended for general corporate purposes and to support the growth of the Bank, including its CCBX segment.

To gain further insights into the financial health of Coastal Financial Corporation, consider exploring: Breaking Down Coastal Financial Corporation (CCB) Financial Health: Key Insights for Investors

Coastal Financial Corporation (CCB) Key Investors and Their Impact on Coastal Financial Corporation (CCB)

Understanding who invests in Coastal Financial Corporation (CCB) and why can offer valuable insights into the company’s potential and stability. Key investors can significantly influence Coastal Financial Corporation (CCB)'s stock performance and strategic direction.

While specific, real-time data on all individual investors might not be publicly available, we can look at general categories and influential players who often hold significant stakes in similar financial institutions. Institutional investors, mutual funds, and hedge funds are typical examples.

Here’s a breakdown of what to consider:

• Notable Investors: Look for well-known investment firms that have positions in Coastal Financial Corporation (CCB). These could include large mutual fund companies like Vanguard or BlackRock, or hedge funds known for investing in community banks.
• Investor Influence: Large institutional investors often have enough shares to influence company decisions through voting rights. Activist investors might publicly push for changes in strategy or operations to increase shareholder value.
• Recent Moves: Keep an eye on SEC filings (such as 13F filings) to track recent buying or selling activity by major shareholders. Significant changes in ownership can signal confidence or concern about the company’s future.

To illustrate the kind of information that would be relevant, consider the following hypothetical example. Note that this data is purely illustrative and should not be taken as actual information about Coastal Financial Corporation (CCB).

Keeping tabs on these areas can provide a more rounded view of Coastal Financial Corporation (CCB)'s market position. For further insights into the company's financial well-being, you might find this resource helpful: Breaking Down Coastal Financial Corporation (CCB) Financial Health: Key Insights for Investors.

Coastal Financial Corporation (CCB) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions is crucial for evaluating the potential of any publicly traded company. Here's a breakdown of the investor profile and market dynamics surrounding Coastal Financial Corporation (CCB). You might also be interested in: Mission Statement, Vision, & Core Values of Coastal Financial Corporation (CCB).

Investor Sentiment:

Based on available data, the sentiment of major shareholders toward Coastal Financial Corporation appears to be mixed, with a slight inclination towards a positive outlook.

• Recent analyst ratings lean towards a bullish perspective.
• However, there has been notable insider selling activity, which could indicate concerns among insiders about the company's future performance or valuation.
• Short interest in Coastal Financial has recently increased by 49.28%, suggesting that investor sentiment is decreasing significantly.

Recent Market Reactions:

The stock market's response to changes in ownership and large investor moves has been somewhat volatile.

• Coastal Financial (CCB) shares fell 0.75%, marking the second consecutive day of decline, with a total drop of 6.37% over the past two days as of April 12, 2025.
• The stock price hit its lowest level since December 2024, experiencing an intraday decline of 4.46%.
• Investor sentiment deteriorated as the stock fell 16% as of March 7, 2025.

Analyst Perspectives:

Analysts' insights provide a more detailed view of how key investors and market dynamics might affect Coastal Financial Corporation's future.

• In the preceding three months, 5 analysts have released ratings for Coastal Financial (NASDAQ:CCB), presenting a wide array of perspectives from bullish to bearish.
• Coastal Financial has received a consensus rating of Buy. The company's average rating score is 3.25, and is based on 3 buy ratings, no hold ratings, and no sell ratings.

Several analysts have recently commented on CCB shares:

• Stephens reissued an 'overweight' rating and set a $100.00 price objective on the shares of Coastal Financial.
• David Feaster, Raymond James, Raises, Strong Buy, $105.00 current price target.
• Timothy Switzer, Keefe, Bruyette & Woods, Raises, Outperform, $114.00 current price target.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $103.8, a high estimate of $114.00, and a low estimate of $100.00. This current average reflects an increase of 7.23% from the previous average price target of $96.80.

The average price target for Coastal Financial Corporation comes to $100.00. The forecasts range from a low of $96.00 to a high of $104.00.

Major Shareholders:

Institutional ownership in Coastal Financial Corporation is significant, with a total of 11,928,498 shares held by 366 institutional owners and shareholders.

The largest shareholders include:

• T. Rowe Price Investment Management, Inc.
• BlackRock, Inc.
• PRSVX - T. Rowe Price Small-Cap Value Fund, Inc.
• Vanguard Group Inc
• Wellington Management Group Llp
• Endeavour Capital Advisors Inc
• Azora Capital LP
• Manufacturers Life Insurance Company, The
• VTSMX - Vanguard Total Stock Market Index Fund Investor Shares
• Dimensional Fund Advisors Lp

As of April 16, 2025, the share price was $82.03 / share, representing an increase of 119.45% over the share price of $37.38 on April 17, 2024.

Financial Performance:

Coastal Financial Corporation's financial performance provides additional context for understanding investor sentiment and market reactions.

• As of December 31, 2024, the company achieved an impressive revenue growth rate of 12.13%.
• Earnings for Coastal Financial are expected to grow by 47.71% in the coming year, from $4.59 to $6.78 per share.
• The company's ROE stands out, surpassing industry averages with an impressive ROE of 3.47%.
• The company's ROA is a standout performer, exceeding industry averages with an impressive ROA of 0.33%.
• The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.12.

Valuation:

Indicators of valuation of Coastal Financial Corporation

• Trading at 34.8% below estimates of its fair value.
• The P/E ratio of Coastal Financial is 25.62, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 21.40.
• Coastal Financial has a P/B Ratio of 3.76.

Additional Factors:

Some other factors to consider are:

• A 'Strong Sell' Stocks was added for April 2, 2025.
• Coastal Financial Corporation self-identifies material weakness. The Everett, Washington-based company restated its financial reports for 2023 and the first three quarters of 2024.
• The outlook on CCB's key focus area of consumer loans is now worse than before because of the sudden deterioration of consumer sentiment.