Bakkt (NYSE:BKKT) Shares Down 1.7% – Here’s Why

Bakkt Holdings, Inc. (NYSE:BKKT)’s stock price dropped 1.7% during trading on Thursday . The company traded as low as $8.23 and last traded at $8.2750. Approximately 1,429,820 shares changed hands during trading, a decline of 14% from the average session volume of 1,666,617 shares. The stock had previously closed at $8.42.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on BKKT. Benchmark cut their price target on Bakkt from $40.00 to $22.00 and set a “buy” rating on the stock in a research report on Wednesday, March 18th. Wall Street Zen upgraded Bakkt from a “strong sell” rating to a “sell” rating in a report on Saturday, May 16th. Finally, Weiss Ratings lowered Bakkt from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Wednesday, April 29th. One research analyst has rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $22.00.

Bakkt Trading Down 1.7%

The company has a fifty day moving average price of $9.15 and a two-hundred day moving average price of $10.45. The firm has a market capitalization of $369.15 million, a price-to-earnings ratio of -6.04 and a beta of 5.89.

Bakkt (NYSE:BKKT) last released its quarterly earnings results on Monday, May 11th. The company reported ($0.41) EPS for the quarter, missing the consensus estimate of ($0.10) by ($0.31). The firm had revenue of $243.59 million for the quarter, compared to analysts’ expectations of $297.94 million. Bakkt had a negative net margin of 8.37% and a negative return on equity of 64.73%.

Insider Buying and Selling at Bakkt

In related news, General Counsel Marc D’annunzio sold 7,780 shares of the business’s stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $8.86, for a total transaction of $68,930.80. Following the completion of the sale, the general counsel owned 110,059 shares in the company, valued at $975,122.74. The trade was a 6.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Karen Alexander sold 4,684 shares of the firm’s stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $9.13, for a total transaction of $42,764.92. Following the sale, the chief financial officer directly owned 55,771 shares in the company, valued at approximately $509,189.23. The trade was a 7.75% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have purchased 865,000 shares of company stock valued at $7,018,900 in the last quarter. Corporate insiders own 10.05% of the company’s stock.

Institutional Trading of Bakkt

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Essential Partners LLC acquired a new position in Bakkt during the 1st quarter worth approximately $31,000. Bank of America Corp DE lifted its holdings in shares of Bakkt by 51.8% in the 1st quarter. Bank of America Corp DE now owns 16,758 shares of the company’s stock valued at $123,000 after buying an additional 5,718 shares during the period. State of Wyoming lifted its holdings in shares of Bakkt by 217.1% in the 1st quarter. State of Wyoming now owns 10,679 shares of the company’s stock valued at $79,000 after buying an additional 7,311 shares during the period. Cetera Investment Advisers purchased a new stake in shares of Bakkt in the first quarter valued at approximately $105,000. Finally, Bank of New York Mellon Corp boosted its stake in shares of Bakkt by 37.4% in the first quarter. Bank of New York Mellon Corp now owns 33,637 shares of the company’s stock valued at $248,000 after buying an additional 9,156 shares in the last quarter. 11.11% of the stock is owned by hedge funds and other institutional investors.

About Bakkt

Bakkt Holdings, Inc is a digital asset platform that aims to bridge traditional finance and digital assets by offering institutional-grade custody, trading and settlement services. Established in 2018 by Intercontinental Exchange (ICE), the company initially made headlines with the launch of its physically settled Bitcoin futures contracts in 2019. Since then, Bakkt has expanded its product lineup to include spot trading of cryptocurrencies, a secure digital wallet for retail customers and a payment gateway that enables merchants to accept digital assets alongside fiat currencies.

The company’s core offering centers on its custody infrastructure, which is built to meet robust regulatory and security standards.