Coastal Financial Corporation
$67.82
-4.0%Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small to medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company offers commercial and industrial loans, including term loans, small business administration loans, commercial lines of credit, working capital loans, equipment financing, borrowing base loans, and other loan products; owner-occupied and non-owner-occupied real estate loans, and multi-family residential loans; construction and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as overdraft protection. It also provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services, as well as debit cards. In addition, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as banking as a service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their clients banking services. It operates 14 full-service banking locations. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 21.7).
Valuation inputs: P/E 21.7, earnings yield +4.6%, momentum -4.0%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +9.6%, ROIC +1.3%).
Profitability stack: net margin +7.1%, ROE +9.6%, ROIC +1.3%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +89.6%, momentum -4.0%, net margin +7.1%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Coastal Financial Corporation Market vs Earnings Trajectory
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Coastal Financial Corporation Fair Value Envelope
Coastal Financial Corporation Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Coastal Financial Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Flat FCF growth. Stable but not expanding—monitor for signs of business maturity or temporary headwinds.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
Coastal Financial Corporation Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Mixed signals: Strong short-term liquidity provides comfort, but high overall leverage requires careful monitoring of debt servicing capabilities and refinancing risk.
Coastal Financial Corporation Street Expectations Map
Wall Street analysts project that CCB stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 132.50, with estimates ranging from a low of 110.00 to a high of 155.00.
The consensus 1-year price target stands at 132.50, with estimates ranging from a low of 110.00 to a high of 155.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Coastal Financial Corporation Insider Positioning
During the last 12 months, insiders have purchased $13K and sold $14.72M worth of CCB shares, resulting in $14.71M of net selling activity.
3 Months
0
0.00
10.4K
754.01K
-754K
-$754K
3-6 Months
0
0.00
54.5K
6.27M
-6.3M
-$6.27M
6-9 Months
0
0.00
68.7K
7.63M
-7.6M
-$7.63M
9-12 Months
1.8K
12.96K
685
70.22K
-57K
-$57K
Top Buyers
Edwards Joel G
Officer: Chief Financial Officer
$13K
Top Sellers
Sprink Eric M
Director, Officer: Ceo
$9.10M
Edwards Joel G
Officer: Chief Financial Officer
$3.53M
Hamilton Brian T
Director, Officer: President Of Ccbx
$1.07M
Hovde Steven D
Director, 10 Percent Owner:
$528K
Klee Stephan
Director
$475K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $14.71M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
CCB has not reported any dividend yield values in the available annual periods.
ccb Dividend History
Learning Layer
Related Guides
Build conviction on CCB by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.