Ark buys $3.4M of Coinbase shares on the day Morgan Stanley turns bearish

On Nov. 2, Cathie Wood’s Ark Invest bought 24,790 Coinbase shares for $3.4 million through its ARKK, ARKW and ARKF exchange-traded funds. The same day, Morgan Stanley downgraded Coinbase to underweight from equal weight and cut its price target to $120 from $258; Coinbase closed down 3.98% at $137.83. Analyst Michael Cyprys cited slower October trading and crypto-market uncertainty, estimating fourth-quarter transaction revenue at about $607 million, roughly 11% below the $685 million consensus, and mentioned a roughly $6 billion Binance hack. Of the 41 analysts covering Coinbase, 26 rate it buy or strong buy and 13 rate it hold.