Tobias Lutke, a director at
Coinbase (COIN), recently picked up 5,349 shares. The buy increased his stake by about 7 percent, and came to a total cost of just under $390,000.
This is the eighth buy made by the director since the end of August. Each buy has been for a similar price, ranging from 4,482 shares to nearly 6,000 shares at a time. Overall, insiders have tilted towards buying in recent months, following massive selling after the company’s IPO last year.
Overall, insiders own 1.8 percent of shares.
The cryptocurrency brokerage firm is down nearly 80 percent in the past year, although it is now over 50 percent over its 52-week lows. Cryptocurrency prices have stabilized, but trading volumes remain low after a big surge of interest in 2020 and 2021.
Even with that drop in trading volume, the company is bringing in nearly $6 billion in annual revenue, and continues to attract institutional investors.
Action to take: As the leading cryptocurrency platform, Coinbase is likely to regain its shine in the next bull market. Investors who start buying now, and add on drops from here, can likely see solid returns in the years ahead.
For traders, shares are likely rangebound in the coming months, but may head higher next year. The June 2023 $130 calls, last going for about $6.30, offer a way to leverage a move higher. Patient traders will likely have a chance to buy the option a bit more cheaply on a down day for shares.
Disclosure: The author of this article has a position in the company mentioned here, and may further trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.