In a recent series of transactions, Eric M. Sprink, the CEO of Coastal Financial Corp (NASDAQ:CCB), sold a significant amount of company stock, totaling over $568,000. The sales occurred over a two-day period, with Sprink parting with 4,000 shares at a price of $51.05 on September 17, followed by a larger sale of 7,000 shares at $52.02 on September 18.
These transactions are part of a prearranged trading plan, according to the footnotes in the filing, which allows insiders to sell shares at predetermined times to avoid any accusations of trading on nonpublic information. Investors often keep an eye on insider sales as they can provide insights into an executive's perspective on the company's current valuation.
In addition to the sales, the CEO also acquired shares through the exercise of stock options. On September 19, Sprink exercised options to purchase 7,806 shares at $6.25 per share and another 3,194 shares at $6.50 per share. The total value for these option exercises amounted to $69,548.
Following these transactions, Sprink's direct ownership in Coastal Financial Corp includes 313,689 shares, which also accounts for time-based and performance-based restricted stock units that are set to vest in the future.
Coastal Financial Corp, based in Everett, Washington, operates as a state commercial bank and is known for its personalized banking services tailored to local businesses and individuals. The stock trades under the ticker CCB on the NASDAQ exchange.
InvestingPro Insights
Amidst the recent insider trading activities by Coastal Financial Corp's CEO, Eric M. Sprink, investors are keenly watching the company's stock performance and valuation. According to InvestingPro, the company has been trading near its 52-week high, with a price close to $50.95. This aligns with Sprink's sale prices of $51.05 and $52.02, suggesting that the CEO capitalized on the stock's strong market position.
InvestingPro Data reveals a market capitalization of $718.97 million, and a P/E ratio slightly elevated at 18.9, reflecting the company's profitability over the last twelve months. The positive revenue growth of 5.88% over the same period indicates a solid financial trajectory for Coastal Financial Corp. An InvestingPro Tip highlights that analysts are predicting the company will be profitable this year, which may provide additional confidence to investors considering the recent insider sales.
Despite not paying dividends, Coastal Financial has shown a robust price uptick of 37.78% over the last six months and a strong return of 15.8% over the past year. These metrics, coupled with the CEO's recent transactions, could be a signal to investors about the stock's potential. For those interested in further insights, InvestingPro offers additional tips on Coastal Financial Corp, which can be accessed at the dedicated InvestingPro page for CCB.
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