Last Updated: 10 Nov 2024
Executive Summary
Coastal Financial Corp (CCB) is a publicly traded bank holding company with a market capitalization of approximately $956 million. The company operates in the Puget Sound region of Washington, providing banking products and services to small and medium-sized businesses, professionals, and individuals. CCB has a strong financial position with a solid track record of profitability and growth. The stock is currently trading at $70.57, below its 52-week high of $72.96 but above its 52-week low of $35.67.
Company Overview
Coastal Financial Corp was founded in 1993 and is headquartered in Everett, Washington. The company operates 19 branches and 2 loan production offices in the Puget Sound region. CCB offers a range of banking products and services, including checking and savings accounts, loans, mortgages, and wealth management services. The company focuses on providing personalized service to its customers and building long-term relationships.
Fundamental Analysis
CCB has a strong financial position with a solid track record of profitability and growth. The company's net income has grown at a compound annual growth rate (CAGR) of 10% over the past five years. CCB's return on assets (ROA) and return on equity (ROE) are both above industry averages. The company has a strong capital position with a Tier 1 capital ratio of 11.5%.
CCB's valuation metrics are reasonable compared to its peers. The stock is trading at a price-to-earnings (PE) ratio of 25.57, which is below the industry average of 27. The price-to-book (PB) ratio of 2.879 is also below the industry average of 3.2.
Technical Analysis
The technical analysis of CCB's stock price shows that the stock is currently in a bullish trend. The stock has been trading above its 50-day and 200-day moving averages for the past several months. The relative strength index (RSI) is also above 50, indicating that the stock is not overbought.
Short Term Outlook
The short-term outlook for CCB's stock is positive. The stock is trading above its key moving averages and the RSI is above 50. This indicates that the stock is likely to continue to trend higher in the near term. The analyst target price of $74.25 is also a positive sign.
Long Term Outlook
The long-term outlook for CCB's stock is also positive. The company has a strong financial position and a solid track record of profitability and growth. The company is also well-positioned to benefit from the continued growth of the Puget Sound region.
Analyst Recommendations
The majority of analysts who cover CCB have a buy rating on the stock. Two analysts have a strong buy rating, two have a buy rating, and none have a hold, sell, or strong sell rating. The average analyst target price is $74.25.
