ARK’s three funds sold 499,149 Coinbase shares. The selling occurred following a run of analyst upgrades for Coinbase as a result of the company exceeding its 4Q earnings estimates.
In response to Coinbase Global’s (COIN) better-than-expected fourth-quarter earnings, which above Wall Street estimates, ARK Invest sold about half a million shares of the cryptocurrency exchange on Friday, for a total estimated value of $90 million. ARK represents one of Coinbase’s biggest institutional supporters.
The investment firm headed by Cathie Wood sold 499,149 shares total—397,924 COIN shares from ARK Innovation ETF (ARKK), 45,433 shares from ARK Next Generation Internet ETF (ARKW), and 55,792 shares from ARK Fintech Innovation ETF (ARKF).
Coinbase’s stock increased by about 27% to $180.31 last week on the release of its positive fourth-quarter earnings.
Following the findings, KBW increased its price objective for the stock from $93 to $160 and upgraded it from underperform to market perform. Its price objective was raised by Wedbush, Canaccord Genuity, and JMP Securities analysts.
Other analysts, like JPMorgan, were less upbeat and criticised the exchange for not being clear about how the spot bitcoin exchange-traded funds improved its bottom line. Mizuho upheld its $60 price target and underperform rating while also criticising Coinbase’s performance.
Recently, ARK also sold $6.72 million worth of shares in the trading site Robinhood (HOOD).