Circle Internet Group Inc. (NYSE:CRCL) will report earnings for the first quarter before the market opens on Monday. Here's a pre-announcement overview about the company and the stock.
Will Circle Disappoint Investors?
Analysts estimate Circle to report earnings per share of $0.17, down 60% from the previous quarter.
The firm behind the world's second-largest stablecoin, USDC (CRYPTO: USDC), is also expected to report revenue of $714.92 million, down from $770.63 million in the fourth quarter of 2025.
Circle reported better-than-expected results in the previous quarter, with both revenue and earnings surpassing estimates.
Mixed Signals From Analysts
The CRCL stock has a consensus price target of $125.53 based on the ratings of 21 analysts. Earlier this month, Wells Fargo maintained its "Overweight" rating for the stock, while upgrading the price target from $111 to $142.
Compass Point, in contrast, downgraded the stock from “Neutral” to “Sell,” slashing the target from $79 to $77.
Bulls Charging or Bears Roaring?
Short interest in the stock rose to 25.30 million shares, representing 12.29% of Circle's publicly available float. Typically, short interest above 10% is generally considered high, signaling a strong bearish sentiment.
Conversely, the Moving Average Convergence Divergence indicator, which compares two exponential moving averages of an asset’s price, flashed a “Buy” signal for the stock, according to TradingView.
The Bull Bear Power Indicator, which measures the strength of buyers and sellers, was “Neutral.”
Circle shares opened to a blockbuster debut on the New York Stock Exchange in June of last year, opening at $69, a 124% increase from its IPO price, and closing at $83.23 on the first day.
Circle’s primary source of revenue is interest income earned on the reserves—mostly in short-term U.S. Treasuries and cash— backing its USDC stablecoin. Cryptocurrency market volatility, primarily caused by fluctuations in USDC circulation and broader demand for digital dollars, can therefore have a substantial impact on the company’s topline.
Price Action: Circle shares closed 0.37% higher at $113.67 during Friday’s regular trading session. Year-to-date, the stock has risen 43%.
Benzinga’s Edge Stock Rankings signal long-term weakness for CRCL despite positive short- and medium-term trends.
Photo courtesy: bella1105 / Shutterstock
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