Bitcoin Depot Inc. Receives “Moderate Buy” Rating from Analysts

Bitcoin Depot Inc. (NASDAQ:BTM) has secured an average recommendation of “Moderate Buy” from seven research firms that cover the company, as reported by Marketbeat.com. Among these analysts, one has issued a sell recommendation, another a hold, while four analysts have assigned a buy rating, and one has given a strong buy rating. The average target price for the stock over the next year is set at $5.83.

Several brokerages have recently updated their ratings on Bitcoin Depot. HC Wainwright raised its price target from $5.00 to $6.50 and affirmed a “buy” rating on August 13, 2023. Conversely, Weiss Ratings maintained a “sell (d+)” rating on October 8, 2023. On October 2, 2023, B. Riley increased its price target from $5.50 to $6.00, also giving the stock a “buy” rating. In a separate report, Zacks Research downgraded Bitcoin Depot from a “strong buy” to a “hold” rating on the same date as HC Wainwright’s upgrade.

Current Financial Performance and Market Position

Bitcoin Depot shares opened at $2.63 on October 6, 2023, reflecting a 2.3% increase. The company has a market capitalization of $179.06 million, a price-to-earnings ratio of 26.30, and a beta of 0.81. Its debt-to-equity ratio stands at 12.34, with both the quick and current ratios at 1.41. Over the past year, the stock has fluctuated between a low of $0.93 and a high of $6.88. The fifty-day moving average is $3.67, while the two-hundred-day moving average is $3.73.

The company announced its quarterly earnings on August 12, 2023, reporting earnings per share (EPS) of $0.16, which fell short of analysts’ expectations of $0.17. Revenue for the quarter was $172.11 million, surpassing the estimated $168.00 million. Bitcoin Depot’s net margin is 0.44%, with a negative return on equity of 44.12%.

Insider Activity and Institutional Trading

In related news, Chief Operating Officer Christopher Scott Buchanan sold 22,000 shares of Bitcoin Depot on August 14, 2023, at an average price of $4.21, resulting in a total transaction value of $92,620. Following this sale, Buchanan retains 147,276 shares in the company, valued at approximately $620,031.96. This transaction represented a 13.00% reduction in his ownership of the stock. In the last quarter, insiders sold a total of 36,000 shares worth $144,000, and they currently own 70.23% of the company’s stock.

Recent activities among institutional investors indicate a growing interest in Bitcoin Depot. Evergreen Capital Management LLC acquired a new stake valued at approximately $471,000 during the second quarter. Similarly, Man Group plc and Lazard Asset Management LLC purchased stakes valued at around $84,000 and $1,149,000, respectively. Bank of America Corp DE significantly increased its holdings by 11,320.0% during the same period, now owning 9,707 shares worth $49,000 after buying an additional 9,622 shares in the last quarter. Furthermore, Welch Capital Partners LLC NY raised its stake by 33.0%, now holding 1,285,190 shares valued at $6,516,000. Institutional investors collectively own 9.18% of Bitcoin Depot’s stock.

Bitcoin Depot Inc. operates a network of cryptocurrency kiosks across North America, allowing customers to buy and sell Bitcoin, Litecoin, and Ethereum. The company also provides cryptocurrency sales through retail locations and its website via its BDCheckout service.

As Bitcoin Depot continues to navigate the dynamic landscape of cryptocurrency, both investor sentiment and market performance will be closely monitored by analysts and stakeholders alike.