CEO Tobi Lutke continued to buy
stock this month.
Lutke, who is also a director of cryptocurrency exchange Coinbase (ticker: COIN), isn’t directly punching in the trades. He set up an automated Rule 10b5-1 trading plan in late May. The plans are meant to remove any potential bias an insider may have from knowledge of nonpublic information. After an insider sets parameters such as price and timing, the plan automatically executes transactions.
From Aug. 23 through Sept. 13, Lutke’s plan paid $1.5 million in four transactions for a total of 21,130 Coinbase shares, an average price of $68.85 each, according to forms he filed with the Securities and Exchange Commission. The purchases were made through an investment vehicle that now owns 54,583 Coinbase shares. Lutke owns 522 more Coinbase shares in a personal account.
Shopify (SHOP) didn’t respond to a request to make Lutke available for comment. He founded the online-shopping platform.
Before his latest purchases, Lutke bought $746,436 of Coinbase stock in two transactions earlier in August.
Coinbase stock has plunged some 70% so far this year, hurt by the tumbling valuations of Bitcoin and other cryptocurrencies. But one observer is slightly more upbeat on the shares.
This past week, J.P. Morgan analyst Kenneth B. Worthington raised his price target on Coinbase stock to $78 from $64. The company has “substantial revenue opportunity that originates from higher interest rates,” the analyst wrote. Worthington kept a Neutral rating.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at firstname.lastname@example.org and follow @BarronsEdLin.