Crypto Stock Edges Lower on Fresh Downgrade

Coinbase Global stock is down more than 78% year-to-date

Digital Content Manager
Jul 6, 2022 at 10:41 AM
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Another analyst is joining the bearish chorus forming around Coinbase Global Inc (NASDAQ:COIN) in recent weeks. More specifically, Atlantic Equities downgraded the cryptocurrency-adjacent stock to “neutral” from “overweight,” as the brokerage questioned the platform's talent attraction abilities. At last check, COIN is off 1.1% to trade at $54.46.

There is still ample room for other firms to follow suit. Coming into today, 12 of the 16 analysts covering the stock called it a "buy" or better, while six carried a tepid "hold" or worse rating. The same could be said for COIN's consensus 12-month price target, which sits at a lofty $132.17, a 142% premium from its current perch, and a level not traded at since late April.

The gift and the curse of COIN is its tethering to the extremely volatile and unpredictable Bitcoin (BTC). While Coinbase stock has somewhat recovered from a May 12, record low of $40.83, it remains firmly below its 30-day moving average. Year-to-date, the shares are down 78.3%, and have consolidated below the $65 level since early June.  

Regardless of direction, options look like a decent way to go when weighing in on the crypto stock. The security's Schaeffer's Volatility Scorecard (SVS) sits at a 77 out of 100, meaning COIN has exceeded option traders' volatility expectations during the past year.

 

 

 

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