Wolfe Research Forecasts Strong Price Appreciation for Chime Financial (NASDAQ:CHYM) Stock

Key Points

• Wolfe Research raised Chime Financial’s price target to $38 from $32 and maintained an “outperform” rating, implying 16.64% potential upside. Analysts overall hold a “Moderate Buy” consensus with an average target of $32.33.
• Chime reported quarterly EPS of $0.07, beating the $0.01 loss analysts expected, while revenue rose 26.8% year over year to $669.77 million.
• Insiders have sold heavily: insiders sold 10.56 million shares worth approximately $341.2 million over the past 90 days, including sales by the CEO and a major shareholder.

Chime Financial (NASDAQ:CHYM - Get Free Report) had its price target increased by equities researchers at Wolfe Research from $32.00 to $38.00 in a note issued to investors on Tuesday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Wolfe Research's price target would indicate a potential upside of 16.64% from the company's previous close.

Several other research firms also recently commented on CHYM. Piper Sandler upped their price objective on shares of Chime Financial from $30.00 to $35.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. UBS Group boosted their price objective on Chime Financial from $26.00 to $28.00 and gave the stock a "neutral" rating in a report on Thursday, August 6th. Zacks Research raised Chime Financial from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 18th. Wall Street Zen upgraded Chime Financial from a "hold" rating to a "buy" rating in a research note on Saturday, July 25th. Finally, Canaccord Genuity Group boosted their price target on Chime Financial from $40.00 to $45.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Four equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $32.33.

Chime Financial Price Performance

NASDAQ CHYM traded down $0.12 during trading on Tuesday, reaching $32.58. 409,175 shares of the company's stock were exchanged, compared to its average volume of 5,242,952. The business has a 50 day moving average price of $23.69 and a 200-day moving average price of $21.29. The stock has a market capitalization of $12.33 billion, a P/E ratio of -464.32 and a beta of 0.30. Chime Financial has a fifty-two week low of $15.88 and a fifty-two week high of $33.74.

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

Insider Activity

In related news, CEO Christopher R. Britt sold 150,000 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $30.16, for a total transaction of $4,524,000.00. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Global Advisors Ltd Dst sold 473,694 shares of Chime Financial stock in a transaction on Friday, August 21st. The shares were sold at an average price of $32.71, for a total value of $15,494,530.74. Following the completion of the transaction, the insider directly owned 397,652 shares of the company's stock, valued at $13,007,196.92. This represents a 54.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 10,558,165 shares of company stock worth $341,244,743. Corporate insiders own 12.30% of the company's stock.

Institutional Investors Weigh In On Chime Financial

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

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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