Circle Stock Recked On Analyst Downgrade to “Sell”
Investment firm Compass Point Action Downgrade Circle Corp. (CRCL) to “Sell,” citing ongoing risks for the stablecoin issuer’s stock, news reports indicate. Shares closed Tuesday down over 8%, extending their slide from an all-time high set recently.
Key contributing factors cited by analysts include:
* Increased stablecoin competition risk from traditional financial institutions (banks and fintechs).
* The impact of anticipated Federal Reserve rate cuts.
* Waning retail investor participation.
Compass Point explicitly mentioned “crypto investors typically ‘sell the news'” regarding events like the recently passed GENIUS Act, though increased competition is noted as a primary drag.
Recent Performance and Price Target
Circle’s stock price ended Tuesday at $198.31. It has fallen approximately 34% since hitting an all-time high of $298.99 on June 23.
Analysts set a price target of $130, representing further downside. Characterizing the valuation, they stated Circle shares trade at about 106 times their 2026 estimated EBITDA.
Price Action and IPO Context
Shares dropped 8.23% on Tuesday. Over the past month, the stock fell an additional 17.47% based on external data providers.
Circle held its public debut via Initial Public Offering (IPO) earlier this month, raising a significant $1.1 billion at an offering price of $31 per share. Its market performance has substantially decreased since the listing, albeit exceeding recent public IPOs.
