Coastal Financial (NASDAQ:CCB) Shares Down 8.3% on Disappointing Earnings

Coastal Financial Corporation (NASDAQ:CCB)’s stock price traded down 8.3% on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $43.19 and last traded at $43.2350. 79,358 shares changed hands during trading, a decline of 59% from the average session volume of 192,765 shares. The stock had previously closed at $47.13.

The company reported $0.89 earnings per share for the quarter, missing analysts’ consensus estimates of $0.96 by ($0.07). Coastal Financial had a negative net margin of 0.53% and a negative return on equity of 0.80%.

Key Stories Impacting Coastal Financial

Here are the key news stories impacting Coastal Financial this week:

• Positive Sentiment: Management characterized third-quarter 2026 results as strong, with growth in the CCBX program identified as the primary earnings driver. This suggests continued expansion in the company’s fintech and banking-as-a-service business. Coastal Financial Corporation Announces Third Quarter 2026 Results
• Positive Sentiment: Coastal Financial and Coastal Community Bank agreed to changes intended to reduce executive compensation and leadership-related costs. Lower overhead could support profitability over time. Coastal Financial Tightens Executive Pay and Leadership Costs
• Neutral Sentiment: The company released an investor presentation outlining a strategic shift. The presentation may help investors assess how management plans to rebalance the business following recent CCBX-related credit issues. Coastal Financial Details Strategic Shift in Investor Presentation
• Negative Sentiment: Third-quarter EPS was $0.89, below consensus estimates ranging from $0.96 to $0.99, although it was slightly above the $0.88 reported a year earlier. The miss, combined with a negative net margin and negative return on equity, highlights ongoing profitability pressure. Coastal Financial Q3 Earnings and Revenues Lag Estimates
• Negative Sentiment: Several law firms are promoting a securities class action alleging that Coastal Financial overstated credit-risk protections in its CCBX lending relationships. The claims center on a partner portfolio of roughly $500 million and could create legal costs, reputational risk and uncertainty; the allegations have not been proven. Investors have until December 1, 2026, to seek lead-plaintiff status. Coastal Financial Class Action Notice

Analyst Upgrades and Downgrades

A number of research firms have commented on CCB. Zacks Research downgraded shares of Coastal Financial from a “hold” rating to a “strong sell” rating in a research report on Tuesday, August 4th. Keefe, Bruyette & Woods reduced their price target on shares of Coastal Financial from $95.00 to $53.00 and set an “outperform” rating for the company in a research note on Friday, July 31st. TD Cowen reiterated a “buy” rating on shares of Coastal Financial in a report on Tuesday, September 29th. Weiss Ratings lowered shares of Coastal Financial from a “hold (c)” rating to a “sell (d)” rating in a research note on Tuesday, August 11th. Finally, Raymond James Financial downgraded Coastal Financial from a “strong-buy” rating to an “outperform” rating and set a $50.00 price objective on the stock. in a research note on Friday, July 31st. Five research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Coastal Financial has a consensus rating of “Hold” and an average price target of $91.33.

Insider Buying and Selling at Coastal Financial

In related news, Director Steven D. Hovde purchased 10,000 shares of the company’s stock in a transaction that occurred on Thursday, August 6th. The shares were purchased at an average price of $43.83 per share, with a total value of $438,300.00. Following the purchase, the director owned 26,500 shares of the company’s stock, valued at $1,161,495. This trade represents a 60.61% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Eric M. Sprink acquired 10,000 shares of the business’s stock in a transaction on Thursday, August 6th. The shares were bought at an average price of $44.45 per share, for a total transaction of $444,500.00. Following the acquisition, the chief executive officer owned 173,238 shares in the company, valued at approximately $7,700,429.10. This trade represents a 6.13% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders have bought 25,290 shares of company stock valued at $1,115,894. 13.49% of the stock is currently owned by company insiders.

Institutional Trading of Coastal Financial

A number of hedge funds have recently bought and sold shares of the company. Versant Capital Management Inc raised its holdings in shares of Coastal Financial by 292.2% during the third quarter. Versant Capital Management Inc now owns 655 shares of the company’s stock valued at $26,000 after acquiring an additional 488 shares during the period. Entropy Technologies LP acquired a new position in Coastal Financial in the 1st quarter worth approximately $201,000. State of Alaska Department of Revenue grew its position in Coastal Financial by 88.8% during the 3rd quarter. State of Alaska Department of Revenue now owns 5,414 shares of the company’s stock worth $215,000 after purchasing an additional 2,546 shares in the last quarter. WINTON GROUP Ltd purchased a new position in Coastal Financial during the 2nd quarter worth approximately $240,000. Finally, Madrona Financial Services LLC raised its stake in Coastal Financial by 49.8% during the 3rd quarter. Madrona Financial Services LLC now owns 7,290 shares of the company’s stock valued at $291,000 after purchasing an additional 2,425 shares during the period. 59.24% of the stock is owned by hedge funds and other institutional investors.

Coastal Financial Price Performance

The stock has a fifty day moving average price of $44.71 and a 200-day moving average price of $69.31. The company has a market cap of $654.87 million, a PE ratio of -152.96 and a beta of 0.86. The company has a debt-to-equity ratio of 0.10, a current ratio of 1.05 and a quick ratio of 1.03.

About Coastal Financial

Coastal Financial Corporation is a bank holding company headquartered in Everett, Washington. Its principal subsidiary, Coastal Community Bank, provides banking services to individuals, families, and businesses in the Pacific Northwest, with a focus on communities in the Puget Sound region.

Coastal Community Bank offers consumer and commercial deposit accounts, residential and commercial real estate lending, business loans, lines of credit, treasury management, online and mobile banking, and other traditional banking products.