What's Going On With Coinbase's Stock?

Coinbase Global, Inc. COIN shares are trading lower Tuesday amid a dip in the price of Bitcoin BTC/USD. 

What To Know:

Bitcoin is trading down by more than 3% over the past 24 hours at $67,171.52, according to data from Benzinga Pro. 

Robinhood Markets, Inc. HOOD announced the acquisition of Bitstamp Ltd., an established, global cryptocurrency exchange, last week. Robinhood's further expansion into cryptocurrency is putting some pressure on established crypto exchanges, including Binance and Coinbase, as a new competitor enters the market. 

Last week, Coinbase introduced its new smart wallet as a solution to the previously cumbersome onboarding process associated with crypto wallets. 

"These next-generation wallets address the biggest pain points of the crypto experience today," the company stated, in a blog post. "Smart wallets make the transition to onchain smoother than ever."

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Is COIN A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Coinbase Glb‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Coinbase Glb COIN does pay a dividend, which yields 0.43% per year as of the closing price on Jun. 11, 2024. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 13.81%, you'll need to buy a share of Ellington Residential by the Jun. 28, 2024. Once done, you can expect to receive a nominal payout of $0.08 on Jul. 25, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Coinbase Glb will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

COIN Price Action: According to Benzinga Pro, Coinbase shares are down 4.83% at $237.75 at the time of publication Tuesday.

Image: Benjamin Nelan from Pixabay