Chime Financial (NASDAQ:CHYM) Coverage Initiated by Analysts at Scotiabank

Key Points

• Scotiabank initiated coverage of Chime Financial with a “sector outperform” rating and a $40 price target, implying 26.34% upside; analysts have a consensus “Moderate Buy” rating and $32.74 target.
• Chime reported quarterly EPS of $0.07, beating the $0.01 loss expected, while revenue rose 26.8% year over year to $669.77 million. The stock opened at $31.66 and was down 4.4% in trading.
• Insiders have sold 13.68 million shares worth approximately $444.7 million over the past 90 days, including a major shareholder’s sale of 4.46 million shares.

Investment analysts at Scotiabank initiated coverage on shares of Chime Financial (NASDAQ:CHYM - Get Free Report) in a research note issued on Wednesday, Briefing.com reports. The firm set a "sector outperform" rating and a $40.00 price target on the stock. Scotiabank's price target suggests a potential upside of 26.34% from the company's previous close.

Several other equities research analysts have also recently weighed in on CHYM. Canaccord Genuity Group increased their price objective on Chime Financial from $40.00 to $45.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. The Goldman Sachs Group upped their price objective on shares of Chime Financial from $26.00 to $33.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Barclays increased their price target on shares of Chime Financial from $26.00 to $33.00 and gave the stock an "overweight" rating in a research note on Friday, August 7th. BMO Capital Markets raised their price objective on shares of Chime Financial from $28.00 to $32.00 and gave the stock an "outperform" rating in a report on Thursday, August 6th. Finally, Keefe, Bruyette & Woods upped their target price on Chime Financial from $30.00 to $35.00 and gave the stock an "outperform" rating in a report on Thursday, August 6th. Four research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Chime Financial currently has a consensus rating of "Moderate Buy" and a consensus target price of $32.74.

Chime Financial Trading Down 4.4%

CHYM opened at $31.66 on Wednesday. The business's 50-day moving average price is $25.60 and its 200-day moving average price is $21.77. Chime Financial has a 12 month low of $15.88 and a 12 month high of $34.16. The company has a market cap of $11.99 billion, a P/E ratio of -452.22 and a beta of 0.30.

Chime Financial (NASDAQ:CHYM - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.07 EPS for the quarter, topping analysts' consensus estimates of ($0.01) by $0.08. Chime Financial had a negative return on equity of 1.28% and a negative net margin of 0.74%.The business had revenue of $669.77 million for the quarter. During the same period last year, the firm earned ($7.29) earnings per share. Chime Financial's revenue for the quarter was up 26.8% on a year-over-year basis. Equities research analysts forecast that Chime Financial will post 0.41 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Ryan A. King sold 375,000 shares of the stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $30.27, for a total value of $11,351,250.00. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Global Advisors Ltd Dst sold 4,456,157 shares of the company's stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $32.66, for a total transaction of $145,538,087.62. Following the completion of the transaction, the insider owned 405,663 shares in the company, valued at approximately $13,248,953.58. The trade was a 91.66% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 13,682,790 shares of company stock valued at $444,671,723 in the last ninety days. Insiders own 12.30% of the company's stock.

Hedge Funds Weigh In On Chime Financial

A number of hedge funds have recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC bought a new position in shares of Chime Financial during the second quarter valued at $33,000. Scopus Asset Management L.P. bought a new position in Chime Financial during the 2nd quarter valued at about $34,000. PNC Financial Services Group Inc. purchased a new stake in shares of Chime Financial during the 4th quarter valued at about $25,000. Daiwa Securities Group Inc. bought a new stake in shares of Chime Financial in the second quarter worth approximately $40,000. Finally, Osaic Holdings Inc. purchased a new position in shares of Chime Financial during the second quarter valued at approximately $45,000.

About Chime Financial

Chime Financial is a U.S.-based financial technology company offering mobile-first banking services designed to reduce fees and simplify everyday transactions. Founded in 2013 and headquartered in San Francisco, Chime operates a digital bank platform that provides customers with a checking account, a savings account, and a debit card without monthly maintenance fees, overdraft charges, or foreign transaction fees. The company’s platform is accessible via its mobile app, enabling users to manage their finances, track spending, and access customer support from their smartphones.

At the core of Chime’s service offering is its fee-free spending account, which includes early access to direct deposit funds—up to two days before scheduled payday—and instant transaction alerts.

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