What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Regional Banks company East West Bank (NASDAQ:EWBC) jumped 4.2%. Is now the time to buy East West Bank? Access our full analysis report here, it’s free.
- Regional Banks company CVB Financial (NASDAQ:CVBF) jumped 4.9%. Is now the time to buy CVB Financial? Access our full analysis report here, it’s free.
- Regional Banks company Frost Bank (NYSE:CFR) jumped 3.4%. Is now the time to buy Frost Bank? Access our full analysis report here, it’s free.
- Regional Banks company Comerica (NYSE:CMA) jumped 4.6%. Is now the time to buy Comerica? Access our full analysis report here, it’s free.
- Regional Banks company Coastal Financial (NASDAQ:CCB) jumped 5%. Is now the time to buy Coastal Financial? Access our full analysis report here, it’s free.
Zooming In On Coastal Financial (CCB)
Coastal Financial’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 9 days ago when the stock gained 4.6% on the news that the company announced the appointment of four new members to its executive leadership team to support its continued growth across its digital banking and community-focused initiatives. The new appointments include Ryan Hall as Chief Product Officer, Michael Costigan as Chief Commercial Officer, Freddy Rivas as Chief Credit Officer, and Chris Morgan as Chief Information Security Officer. These strategic hires are intended to bolster the company's expansion, particularly in its high-growth digital banking and embedded finance divisions. The new leaders bring crucial expertise in fintech partnerships, credit risk management, and cybersecurity, strengthening the bank's operational resilience. This news adds to recent positive momentum, with the company's stock trading near its 52-week high after delivering impressive returns over the past year.
Coastal Financial is up 29.5% since the beginning of the year, and at $109.72 per share, has set a new 52-week high. Investors who bought $1,000 worth of Coastal Financial’s shares 5 years ago would now be looking at an investment worth $8,182.
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