Morgan Stanley Boosts Chime Financial (NASDAQ:CHYM) Price Target to $40.00

Key Points

• Morgan Stanley raised Chime Financial’s price target to $40 from $39 and maintained an “overweight” rating, implying roughly 17% upside from the stock’s current price.
• Chime shares rose 5.5% to $34.10, while the broader analyst consensus remains positive at a “Moderate Buy” rating and a $34.75 target price.
• The company reported quarterly revenue growth of 26.8% year over year and beat earnings expectations; recent headlines also highlight its planned $590 million acquisition of Stride Bank and higher 2026 revenue guidance.

Chime Financial (NASDAQ:CHYM - Get Free Report) had its target price increased by stock analysts at Morgan Stanley from $39.00 to $40.00 in a note issued to investors on Wednesday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Morgan Stanley's target price would indicate a potential upside of 17.31% from the company's current price.

Other equities research analysts also recently issued reports about the company. Wall Street Zen raised Chime Financial from a "hold" rating to a "buy" rating in a research report on Saturday, July 25th. Weiss Ratings raised Chime Financial from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Thursday, September 3rd. The Goldman Sachs Group increased their target price on Chime Financial from $26.00 to $33.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Freedom Capital raised Chime Financial to a "strong-buy" rating in a report on Thursday, July 23rd. Finally, Barclays lifted their price target on Chime Financial from $33.00 to $40.00 and gave the stock an "overweight" rating in a research report on Wednesday. Four equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $34.75.

Chime Financial Stock Up 5.5%

CHYM stock traded up $1.79 during midday trading on Wednesday, hitting $34.10. 7,569,229 shares of the company traded hands, compared to its average volume of 5,295,586. Chime Financial has a twelve month low of $15.88 and a twelve month high of $35.55. The stock has a market capitalization of $12.91 billion, a price-to-earnings ratio of -485.24 and a beta of 0.60. The business has a 50 day simple moving average of $26.98 and a 200-day simple moving average of $22.25.

Chime Financial (NASDAQ:CHYM - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.07 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.01) by $0.08. Chime Financial had a negative net margin of 0.74% and a negative return on equity of 1.28%. The business had revenue of $669.77 million during the quarter. During the same period in the prior year, the company posted ($7.29) earnings per share. Chime Financial's quarterly revenue was up 26.8% on a year-over-year basis. Equities research analysts forecast that Chime Financial will post 0.43 EPS for the current year.

Insider Transactions at Chime Financial

In other news, major shareholder Global Advisors Ltd Dst sold 4,456,157 shares of the company's stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $32.66, for a total transaction of $145,538,087.62. Following the transaction, the insider directly owned 405,663 shares in the company, valued at approximately $13,248,953.58. This represents a 91.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Ryan King sold 375,000 shares of the stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $30.27, for a total transaction of $11,351,250.00. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 13,879,790 shares of company stock valued at $451,025,723. Insiders own 12.30% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. AMS Capital Ltda bought a new stake in shares of Chime Financial in the 1st quarter valued at about $3,439,000. Arrowstreet Capital Limited Partnership boosted its stake in Chime Financial by 2,720.3% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,756,555 shares of the company's stock worth $51,630,000 after acquiring an additional 2,658,816 shares during the last quarter. Hsbc Holdings PLC acquired a new position in Chime Financial during the fourth quarter valued at approximately $1,274,000. Brown University increased its stake in Chime Financial by 99.0% in the first quarter. Brown University now owns 204,625 shares of the company's stock valued at $3,833,000 after purchasing an additional 101,820 shares in the last quarter. Finally, Bank of America Corp DE increased its stake in Chime Financial by 115.0% in the first quarter. Bank of America Corp DE now owns 319,579 shares of the company's stock valued at $5,986,000 after purchasing an additional 170,941 shares in the last quarter.

Key Headlines Impacting Chime Financial

Here are the key news stories impacting Chime Financial this week:

• Positive Sentiment: Chime agreed to acquire Stride Bank for $590 million in cash. Stride is Chime’s longtime banking partner and holds a national charter; after closing, it is expected to become Chime Bank, N.A., a wholly owned subsidiary. The deal may reduce reliance on outside banking partners, improve control over lending economics, and produce more than $100 million in potential net synergies. Chime Announces Agreement to Acquire Stride Bank
• Positive Sentiment: The company raised its full-year 2026 revenue guidance to as much as $2.77 billion, reinforcing the investment case for stronger growth following better-than-expected second-quarter results. Chime Financial to Buy Stride and Raise Guidance
• Positive Sentiment: Analysts became more constructive: Canaccord raised its price target from $45 to $50 with a Buy rating, while Barclays and KeyCorp lifted targets to $40 and maintained Overweight ratings. Loop Capital initiated coverage with a Buy rating and a $45 target. Zacks Momentum Stocks List
• Positive Sentiment: Zacks added CHYM to its Rank #1 Strong Buy momentum list, adding to the stock’s recent momentum appeal. Zacks Chime Momentum Analysis
• Neutral Sentiment: The acquisition remains subject to closing conditions and regulatory approvals. Chime must also execute the integration successfully and absorb the substantial cash outlay, creating potential near-term uncertainty despite the strategic benefits. Reuters Stride Bank Acquisition Report

Chime Financial Company Profile

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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