On August 3, Circle Internet Corp. fell 6.55% in regular trading, trading at $58.62/share, with turnover of $126 million.

On the news front, Morgan Stanley downgraded Circle from Equalweight to Underweight and drastically cut its price target from $106 to $38, marking the second major investment bank to issue a bearish rating on the stock following Mizuho's earlier downgrade to Underperform with a $50 target. Morgan Stanley's new target implies over 35% further downside from current levels.

Multiple headwinds compounded the selling pressure. On-chain data showed July marked the third consecutive month of stablecoin net outflows, directly threatening Circle's core revenue model which is highly dependent on USDC circulation scale and reserve yield generation. Additionally, company President Heath Tarbert has sold CRCL shares 10 times cumulatively totaling over $30.77 million, intensifying concerns over management confidence. With earnings due on August 5, uncertainty around results further weighed on sentiment.

Meanwhile, TD Cowen initiated coverage with a Buy rating and $82 target on the same day, highlighting a widening bull-bear divide among institutions.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)