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    How Insider Moves and Cost Cuts Will Shape Coastal Financial’s (CCB) Investment Narrative

    Simply Wall St·12/14/2025 05:32:48
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    • In recent weeks, Coastal Financial has seen director and major shareholder Steven Hovde sell several thousand shares, while Executive Vice President and Chief Risk Officer Andrew Stines resigned without any reported disagreements.
    • At the same time, management’s message that a period of heavy spending is largely behind the company has attracted supportive attention from TD Cowen, highlighting expectations for stronger operating leverage ahead.
    • With these developments in mind, we’ll examine how Coastal Financial’s shift away from elevated expenses could influence the company’s broader investment narrative.

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    What Is Coastal Financial's Investment Narrative?

    To own Coastal Financial today, you have to believe its fast-growing, tech-forward banking model can keep converting strong revenue growth into sustainable profits, even as credit costs and regulation remain front of mind. The recent insider sales by long-time director and major shareholder Steven Hovde may draw attention given the already full valuation multiples, but the modest size of the sales relative to the share price performance suggests they do not obviously alter the near term story. More consequential is management’s assertion that the bulk of elevated spending is behind it, now echoed by TD Cowen’s higher price target, which reinforces the idea that operating leverage could improve if revenue growth holds up. The resignation of the Chief Risk Officer, while framed as amicable, keeps risk culture and net charge-offs firmly on the list of issues to watch.

    However, investors should also be aware of how persistent net charge-offs could pressure that improving margin story. Coastal Financial's shares have been on the rise but are still potentially undervalued by 16%. Find out what it's worth.

    Exploring Other Perspectives

    CCB 1-Year Stock Price Chart
    CCB 1-Year Stock Price Chart
    Four Simply Wall St Community fair value estimates span roughly US$76 to US$135, underlining how differently investors view Coastal’s premium valuation and heavy charge-off history, especially as management now claims the spending buildout is largely over.

    Explore 4 other fair value estimates on Coastal Financial - why the stock might be worth 33% less than the current price!

    Build Your Own Coastal Financial Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.