Why Silvergate Capital Stock is Soaring Today
Shares of Silvergate Capital (IF 14.97%), a cryptocurrency banking platform, was surging on Wednesday after an analyst raised its price target for the stock from $100 to $115. As of 12:46 p.m. ET, the stock was up 12.3%.
Wells Fargo Analyst Jared Shaw retained his overweight rating on Silvergate shares and said in his note to investors that the bearish case for the stock is already priced into its stock at this point, according to TheFly.com.
“We are in the early stages of crypto and blockchain adoption,” Shaw wrote, and he clearly thinks Silvergate could benefit from the growth of these trends. Shaw’s price target of $115 is about 28% above the $89.50 per share level that Silvergate was trading at the time of writing.
Shaw’s price target increase comes just a day after Silvergate reported its second quarter results. Its non-GAAP earnings per share of $1.13 significantly exceeded analysts’ consensus estimate of $0.84.
Silveragate CEO Alan Lane said in a press release on Tuesday that the company “had another strong quarter in light of the challenging environment facing the broader digital currency ecosystem.”
Silvergate stock is now up 38% overall this week. Even with those gains, however, it remains down about 40% year-to-date.
Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Chris Neiger has no position in the stocks mentioned. The Motley Fool recommends Silvergate Capital Corporation. The Motley Fool has a disclosure policy.