Circle Internet Group (CRCL) Stock: Slides 9% After Analyst Cuts and Insider Selling

TLDR

• Circle stock fell almost 10% despite strong quarterly earnings.
• Analysts cut price targets and maintained mostly neutral ratings.
• Revenue jumped nearly 66% year over year, beating expectations.
• Insider selling weighed on sentiment over the past 90 days.
• Long-term performance still trails the broader S&P 500.

Circle Internet Group (NYSE: CRCL) shares closed at $76.60 on Thursday, down 9.67%, before ticking up slightly to $77.30 in after-hours trading. The sharp move came as investors reacted to a mix of analyst downgrades, valuation concerns, and heavy insider selling, even as the company delivered a sizable earnings beat.

Circle Internet Group, CRCL

Roughly 6.9 million shares traded during the session, about 14% below the stock’s average daily volume, suggesting conviction-driven selling rather than panic liquidation.

The fintech firm, best known as the issuer of the USDC stablecoin, has remained in focus as public markets reassess crypto-linked equities in a higher scrutiny environment. Thursday’s decline highlights how sentiment can shift quickly when expectations reset.

Analyst Downgrades Pressure Sentiment

Several major research firms adjusted their outlooks on Circle following recent results. Deutsche Bank cut its price target sharply to $90 from $147 and reiterated a hold rating. Robert W. Baird followed with a reduction to $110 from $144, maintaining a neutral stance. Wolfe Research initiated coverage with an underperform rating and a $60 price target, adding further pressure to the stock.

Other firms remained more balanced. Goldman Sachs raised its target modestly to $88 and kept a neutral rating, while Citigroup began coverage earlier with a market perform view. Overall, the analyst consensus sits at “Hold,” with a wide dispersion in targets. According to MarketBeat data, the average price target stands at $139.29, reflecting optimism from some long-term bulls despite near-term volatility.

Earnings Beat Sends Mixed Signal

Circle’s latest quarterly results showed solid operational momentum. The company reported earnings per share of $0.64, far exceeding consensus estimates of $0.20. Revenue reached $739.76 million, marking a 65.9% year-over-year increase. Growth was driven by higher interest income tied to reserves backing USDC and increased usage of Circle’s programmable payments infrastructure.

Despite the strong top-line performance, investors appeared focused on valuation and sustainability. The stock trades with a negative price-to-earnings ratio of -33.46, reflecting prior losses and uneven profitability. Circle’s 50-day moving average of $82.38 and 200-day moving average of $127.45 show how far the stock has retreated from earlier highs.

Insider Selling Raises Caution

Another factor weighing on shares has been insider activity. Over the past 90 days, company insiders sold roughly 722,089 shares worth about $58.5 million. Recent transactions included sales by CEO Jeremy Allaire and Chief Accounting Officer Tamara Schulz, both trimming their holdings by single-digit percentages.

While insider selling does not always signal trouble, the timing has made investors cautious, especially as the stock attempts to stabilize. Market participants often look for alignment between executive behavior and long-term growth narratives, particularly in volatile sectors like digital assets.

Institutional and hedge fund participation remains relatively light. Several firms initiated small positions during recent quarters, though allocations were limited in size. These moves suggest exploratory interest rather than strong institutional conviction at current levels.

Long-Term Performance and Outlook

From a performance standpoint, CRCL has delivered mixed returns. The stock is down 3.40% year to date, while the S&P 500 is up 1.45%. One-year returns stand at 11.01%, trailing the broader index. Longer-term comparisons show a similar gap, underscoring the challenges Circle faces in convincing investors of durable, cycle-resistant growth.

Circle’s role as a core infrastructure provider in digital payments and stablecoins remains central to its story. Yet, Thursday’s selloff shows that strong earnings alone may not be enough when analyst expectations reset and insider selling clouds sentiment. Investors will likely watch future quarters closely for margin stability, regulatory clarity, and signs of sustained institutional adoption.

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