Coastal Financial Corp (CCB) saw its stock plummet 5.25% in pre-market trading on Wednesday following disappointing first-quarter results and subsequent analyst downgrades. The Everett-based financial services company faced a double whammy of missed earnings expectations and lowered target prices from prominent financial institutions.

Coastal Financial's Q1 2025 earnings report, released earlier, fell short of analyst estimates. The company reported revenue of $83.8 million, up 29% year-over-year but missing analyst expectations by 12%. Earnings per share (EPS) came in at $0.65, a 25% miss compared to analyst forecasts. Despite showing growth from the previous year, with net income up 43% to $9.73 million, the results failed to meet market expectations, likely contributing to the sharp stock decline.

Adding to the negative sentiment, two major financial institutions lowered their target prices for Coastal Financial. KBW cut its target price to $110 from $114, while Raymond James reduced its target to $100 from $105. These downgrades suggest a more cautious outlook on the company's near-term prospects, further pressuring the stock. Investors will be closely watching Coastal Financial's performance in the coming quarters to see if the company can rebound from this setback and regain market confidence.