Coinbase Stock Cools Ahead of Annual Stockholder Meeting

Year-to-date, COIN has shed more than 73%

facebook twitter linkedin


Coinbase Global Inc (NASDAQ:COIN) is down 0.5% to trade at $65.81 at last check, roughly one week before the cryptocurrency exchange platform's annual stockholder meeting on Wednesday, June 1. Shares have been testing a floor at their $60 level over the past week, after dropping to a May 12, all-time low of $40.83, but remain well below the 20-day moving average. Year-to-date, COIN has shed 73.5%.

COIN 20 Day

Shorts have been piling on the equity of late. Short interest rose 54.7% in the last two reporting periods, and the 9.52 million shares sold short now account for 5.6% of the stock's available float.

The options pits are similarly bearish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 1.85 sits higher than 95% of annual readings. This means puts have been getting picked up at a much quicker-than-usual pace over the last two weeks.

Echoing this, the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.30 ranks in the 99th percentile of its 12-month range, indicating short-term options traders are now operating with a heavy put-bias.

The crypto stock offers a relatively low valuation at a price-earnings ratio of 6.73, and a price-sales ratio of 2.03, after Coinbase stock’s huge price drop. However, COIN has no forward price-earnings ratio, since the business is expected to report unprofitable years for 2022 and 2023.

Estimates have the company's EPS (earnings per share) decreasing 21.76 for 2022, down to -$7.26. For 2023, COIN is expected to increase earnings by $3.21, but remain unprofitable at an EPS of -$4.05. Plus, Coinbase is expected to end 2022 with a 41.4% drop in revenues. Still, the crypto exchange is expected to see a recovery in revenues in 2023, with 27.8% expected growth.

In addition, COIN maintains a strong balance sheet with $6.48 billion in cash, and $3.49 billion in total debt, which should help them weather the current storm. Coinbase stock still remains a high-risk, high-reward stock, offering an intriguing long-term opportunity as a speculative bet on the crypto market, and short-term as a recovery play.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 

300x250 - Banner 3 - v1