Coinbase (NASDAQ:COIN) stock is taking a beating on Thursday as investors react to a couple of pieces of news about the crypto exchange.
The first big story concerning COIN stock has to do with the New York State Department of Financial Services. Coinbase just reached a $100 million settlement with the agency. This news comes as regulators try and catch up with crypto and how to regulate digital assets.
The settlement includes Coinbase paying a $50 million penalty to “settle allegations it violated anti-money-laundering laws.” Regulators dinged the company for failing to perform thorough background checks on users. The other $50 million will go toward improving Coinbase’s compliance program over the next two years.
COIN Stock Was Also Downgraded
Cowen analysts Stephen Glagola and George Kuhle are behind this next bit of news. Specifically, they dropped COIN stock from an “outperform” rating to a “market perform” rating. The current consensus rating is “hold” based on 24 analysts’ opinions.
To go along with that, the Cowen analysts also cut their price target for COIN stock from $75 to $36 per share. That represents a potential 4.5% downside for the exchange’s shares based on yesterday’s closing price. For the record, the consensus price target for COIN is $82.30 per share.
COIN stock is down 10.9% as of Thursday morning with some 7.6 million shares trading hands. The company’s daily average trading volume is roughly 14.3 million shares.
Investors seeking out more recent stock market news will want to stick around!
InvestorPlace is home to all of the hottest stock market news on Thursday! Among that is what’s happening with shares of Amazon (NASDAQ:AMZN), AMTD Digital (NYSE:HKD) and Relativity Acquisition (NASDAQ:RACY) shares. You can find out more on these matters at the links below!
More Thursday Stock Market News
- Amazon Layoffs 2023: What to Know as AMZN Job Cuts Surpass Estimates
- Why Is AMTD Digital (HKD) Stock Up 80% Today?
- Why Investors Are Diving Into Relativity Acquisition (RACY) Stock
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
