Form 4: Insider Sells Coastal Financial Shares

Coastal Financial Corp Director and 10% Owner Steven D. Hovde sold 3,000 shares of common stock for approximately $351,750.

Summary

• Steven D. Hovde, a Director and 10% Owner of Coastal Financial Corp (CCB), reported sales of common stock.
• On December 10, 2025, Hovde sold 1,500 shares of common stock at a price of $116.00 per share.
• On the same date, he sold an additional 1,500 shares of common stock at a price of $118.50 per share.
• The total proceeds from these sales amounted to $351,750.
• Following these transactions, Hovde directly beneficially owns 1,715,960 shares of common stock.
• His indirect beneficial ownership decreased from an initial 14,500 shares to 11,500 shares after both sales.
• The direct holdings include 1,090 shares of restricted stock granted under the 2018 Omnibus Incentive Plan, which are scheduled to vest one day prior to the issuer's 2026 Annual Shareholder Meeting.

Sentiment

Score: 4

Explanation: The sale of shares by a director and 10% owner is generally viewed negatively by the market, as it can signal a lack of confidence. However, the amount sold is relatively small compared to the total direct holdings, and the transaction could be for personal financial planning, preventing a lower score.

Negatives

• A Director and 10% Owner, Steven D. Hovde, sold 3,000 shares of common stock, totaling $351,750.
• Insider selling, especially by a significant owner and director, can sometimes be interpreted by the market as a signal of reduced confidence in the company's short-term prospects or valuation.

Future Outlook

1,090 shares of restricted common stock are scheduled to vest one day prior to Coastal Financial Corporation's 2026 Annual Shareholder Meeting.

Industry Context

Insider selling can be a common occurrence for various personal financial planning reasons and does not always indicate a negative outlook on the company or industry. However, significant insider selling, especially by a director and 10% owner, is often scrutinized by investors for potential signals regarding future company performance or valuation within the financial services sector.

Stakeholder Impact

• Shareholders: May interpret the insider selling as a negative signal, potentially leading to downward pressure on the stock price or increased scrutiny of the company's prospects.

Next Steps

• The vesting of 1,090 restricted shares is expected one day prior to the 2026 Annual Shareholder Meeting.

Key Dates

Recommendation

The sale of 3,000 shares by a Director and 10% Owner, Steven D. Hovde, is a notable event. While insider selling can signal a lack of confidence, the transaction represents a relatively small portion of his total beneficial ownership (3,000 shares out of over 1.7 million direct shares plus indirect holdings). Without further information on the company's financial performance or strategic outlook, a definitive 'sell' recommendation is premature. Investors should monitor future insider activity and company news, maintaining a 'hold' position for now.

Keywords

Coastal Financial Corp, CCB, Steven D. Hovde, Insider Trading, Form 4, Stock Sale, Director, 10% Owner, Financial Services, Banking