Cathie Wood Keeps Hoarding This Crypto-Linked Stock: Is It a Buy At Current Levels? – Coinbase Glb (NASDAQ:COIN)

Mar 5, 2023 11:36 am | 2 minutes read

Cathie Woods Ark Invest has consistently accumulated shares in cryptocurrency exchanges Coinbase Global, Inc. (NASDAQ:COIN) since listing in April 2021.

What happened: Despite the volatility seen this year, Wood’s exchange-traded funds continued to add shares. Last on Friday the Ark Innovation ETF (NYSE:ARKK) and Ark Next Generation Internet ETF (NYSE:ARKW) collectively bought 119,543 shares of Coinbase worth $7.7 million.

Since the beginning of the year, Ark has bought about 1.2 million shares of Coinbase through its ETFs. At an annual average price of approximately $57, the purchase is valued at $68.4 million.

Ark’s current positions in Coinbase are as follows:

• ARKK – 6.51 million shares and 5.61% weight
• ARKW – 1.44 million shares and 7.48% weighting
• See also: How to Buy Coinbase Shares

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Is Coinbase a buy: Coinbase has seen uneven trading year-to-date despite the generally positive sentiment prevailing in the broader market. After shares of the cryptocurrency exchange rallied earlier in the year, staking ban concerns weighed on early February.

Since then, Coinbase stock has appeared to be consolidating in a range.

The average analyst price target for Coinbase is $59.79, which suggests a little over 7% below current levels.

Coinbase’s fortunes are largely tied to cryptocurrencies, and any decline in cryptos could have a negative impact on the exchange as well. Following the release of Coinbase’s fourth-quarter results, Raymond James analyst Patrick O’Shaughnessy pointed to risks stemming from the potential for significant regulatory action and retail price compression.

However, Needham’s John Todaro sees Coinbase as an attractive way to capitalize on the growing crypto-asset universe, which includes intersections in the high-growth areas of stablecoins, De-Fi, NFTs, borrow/lend applications, and yield farming.

Needham has a Buy rating and a price target of $73 on Coinbase, while Raymond James rates it as Underperform.

Coinbase closed Friday’s session at $64.51, up 1.27%, according to Benzinga Pro data.

Continue reading: Coinbase Q4 Results and Guidance ‘Encouraging’, but Regulatory Risks Remain: Why Analysts Are Mixed on Ratings and Price Targets

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