Here’s Why Coastal Financial Corporation (CCB) Rose in Q4

Riverwater Partners, an investment management company, released its “Micro Opportunities Strategy” Q4 2024 investor letter. A copy of the letter can be downloaded here. Although the Micro Opportunities Strategy had impressive absolute returns in the fourth quarter, it fell short of the benchmark, which resulted in a year-over-year underperformance. The quarterly results were primarily driven by stock selection. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Riverwater Partners Micro Opportunities Strategy highlighted stocks like Coastal Financial Corporation (NASDAQ:CCB) in the fourth quarter 2024 investor letter. Coastal Financial Corporation (NASDAQ:CCB) is a bank holding company for Coastal Community Bank. One-month return of Coastal Financial Corporation (NASDAQ:CCB) was 0.44%, and its shares gained 105.14% of their value over the last 52 weeks. On January 21, 2025, Coastal Financial Corporation (NASDAQ:CCB) stock closed at $84.97 per share with a market capitalization of $1.268 billion.

Riverwater Partners Micro Opportunities Strategy stated the following regarding Coastal Financial Corporation (NASDAQ:CCB) in its Q4 2024 investor letter:

“Among individual stocks, Coastal Financial Corporation (NASDAQ:CCB) was the top performer for the quarter. CCB operates as the bank holding company for Coastal Community Bank, serving small- and medium-sized businesses and individuals in the Puget Sound region of Washington. The post-election rally in bank stocks provided a boost, but more importantly, CCB’s Banking-as-a-Service (BaaS) segment, which partners with major firms like Walmart and Robinhood, is expected to drive significant growth in 2025 as these firms roll out their banking products.”

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A smiling customer exiting the bank with a savings account statement in their hands.

Coastal Financial Corporation (NASDAQ:CCB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Coastal Financial Corporation (NASDAQ:CCB) at the end of the third quarter which was 8 in the previous quarter. While we acknowledge the potential of Coastal Financial Corporation (NASDAQ:CCB) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.