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Coinbase Global (NASDAQ:COIN) continued losses for a ninth consecutive session, as the stock fell 7.7% on Friday.
The California based cryptocurrency exchange lost 21.7% in the preceding eight sessions. The stock has fallen 6.1% so far this year, compared to a 15.4% rise in the broader S&P 500 (SP500) Index.
COIN is down 17% over the past one month. The stock closed 2.16% lower on Thursday at $159.7.
The U.S. Securities and Exchange Commission this month asked a New York court to deny Coinbase’s (COIN) subpoena demanding that the regulator hand over “essentially all documents that in any way relate to crypto.”
Last year, the agency filed a lawsuit against Coinbase for allegedly operating as an unregistered securities broker. Leading up to that, Coinbase sued the SEC seeking to force a response to its rulemaking petition.
The added regulatory pressure on Coinbase has led analysts to be bearish on the stock. Seeking Alpha’s Quant rating considers the stock a SELL, giving it a rating of 2.45 out of 5. The company has received an A- in terms of profitability and an F on valuation.
Looking at the Wall Street Community, 11 out of 25 analysts recommend BUY and above, 11 recommend to HOLD the stock, while 3 recommend SELL and below.
Seeking Alpha analysts see the stock as a HOLD.
Analyst Gary Alexander is bearish on the stock as shares of Coinbase (COIN) have continued a sharp correction after Q2 results showed a decline in trading revenue, with Q3 expected to continue at a weak pace.
“The company continues to face ongoing uncertainty from a pending SEC lawsuit and regulatory uncertainty,” Alexander added.
