Circle Internet Group (CRCL), the company behind the USDC stablecoin, debuted in June at $31 per share and has since seen its stock skyrocket about 345%. In a regulatory filing, Circle disclosed that its director Rajeev Date sold 48,800 shares of common stock on August 18, in a transaction valued at $6.21 million. In a separate filing, the company reported that Chief Product & Technology Officer Nikhil Chandhok sold 50,000 shares on the same day, worth about $6.35 million. These transactions reflect that the insiders are locking in gains after the stock’s sharp post-IPO rally.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Insiders Trim Stakes After Blockbuster IPO Surge
These sales come shortly after Circle launched a 10 million Class A share offering last week, consisting of 2 million shares from the company and 8 million from existing shareholders, including CEO Jeremy Allaire, raising around $1.4 billion.
A corporate insider’s share sale usually signals caution about the company’s future potential. However, an insider might sell shares for other reasons, such as financial or personal obligations. It is important to keep an eye on the Informative trades of corporate insiders, as they may provide insight into expectations for the company’s growth.
Currently, CRCL stock has a Negative Insider Confidence Signal on TipRanks, based on Informative Sell transactions exceeding $393.3 million, undertaken in the last three months.
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.
Following Q2 results, analysts are split on Circle Internet stock. JPMorgan analyst Kenneth Worthington raised his price target to $89 from $80 but kept a Sell rating, noting solid revenue growth yet pointing to flat USDC share and a high valuation as key risks. In contrast, Needham analyst John Todaro reiterated a Buy rating, pointing out that strong subscription revenue and the launch of Circle’s new blockchain, Arc, could support future growth.
What Is the Target Price of CRCL Stock?
Currently, Wall Street is cautious about Circle Internet stock, with a Hold consensus rating based on six Buys, six Holds, and four Sell recommendations. The average CRCL stock price target of $177.93 indicates a possible upside of 29.11% from current levels.
