Circle Internet Group (CRCL), the company behind the USDC stablecoin, debuted in June at $31 per share and has since seen its stock skyrocket by about 349%. Just two months after the IPO, company insiders seized the chance to lock in gains. They launched an early public offering of 10 million Class A shares, 2 million from Circle itself and 8 million from shareholders, including CEO Jeremy Allaire, raising an impressive $1.4 billion.
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JPMorgan, the IPO’s lead underwriter, waived the usual lock-up rules that prevent insider sales until year’s end, allowing the group to sell while market enthusiasm was still running high.
Josef Schuster, who tracks IPO deals, called the sale “an opportunistic move that makes sense and that’s how risk gets transferred into public market.”
It is important to keep an eye on the informative trades of corporate insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Earnings Release Adds to Market Buzz
The insider sale came on the heels of Circle’s second-quarter earnings results, reported on August 12. Revenue climbed 53% year-over-year, fueled by strong growth in its USDC stablecoin business. USDC circulation surged 90% to $61.3 billion in the quarter.
However, the company posted a net loss of $482.1 million, or $4.48 per share, compared to a break-even result a year ago. The losses were driven by rising operating costs and heavy investments to expand the business.
Despite the impressive revenue growth, several analysts remain cautious about the stock. One such analyst was Bo Pei of US Tiger Securities, who lowered his price target on the stock from $200 to $180 while maintaining a Hold rating. He remained concerned about declining profit margins, higher-than-expected operating costs, and the stock’s high valuation.
What Is the Target Price of CRCL Stock?
Currently, Wall Street is cautious about Circle Internet stock, with a Hold consensus rating based on five Buys, six Holds, and four Sell recommendations. The average CRCL stock price target of $171.43 indicates a possible upside of 23.13% from current levels.
