Braze (NASDAQ:BRZE) Reaches New 52-Week Low - Here's Why

Key Points

• Braze, Inc. hit a new 52-week low of $23.91 during trading, with the last trading price at $25.30 and over 1.5 million shares changing hands.
• Analysts have given Braze a consensus rating of "Moderate Buy", with an average price target of $45.50 following recent adjustments from firms such as Piper Sandler and Barclays.
• The company's recent quarterly earnings exceeded expectations, reporting a 19.6% year-over-year revenue increase to $162.06 million despite a negative net margin and earnings per share forecasted to be -0.98 for the current year.

Braze, Inc. (NASDAQ:BRZE - Get Free Report) hit a new 52-week low on Thursday . The company traded as low as $23.91 and last traded at $25.30, with a volume of 1559187 shares traded. The stock had previously closed at $24.11.

Wall Street Analysts Forecast Growth

BRZE has been the topic of several research reports. Wells Fargo & Company decreased their target price on Braze from $55.00 to $40.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 22nd. Cantor Fitzgerald began coverage on Braze in a report on Tuesday, June 3rd. They issued an "overweight" rating and a $45.00 price objective for the company. Barclays decreased their price objective on Braze from $70.00 to $47.00 and set an "overweight" rating for the company in a report on Friday, May 16th. JMP Securities reiterated a "market outperform" rating and set a $68.00 price target on shares of Braze in a report on Friday, June 6th. Finally, Macquarie reduced their target price on Braze from $40.00 to $35.00 and set a "neutral" rating for the company in a research note on Friday, June 6th. One analyst has rated the stock with a hold rating and twenty have given a buy rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $45.50.

Braze Stock Performance

The company has a market capitalization of $2.69 billion, a P/E ratio of -25.25 and a beta of 1.10. The firm's fifty day moving average is $27.45 and its 200 day moving average is $32.66.

Braze (NASDAQ:BRZE - Get Free Report) last posted its earnings results on Thursday, June 5th. The company reported $0.07 EPS for the quarter, beating analysts' consensus estimates of $0.05 by $0.02. The company had revenue of $162.06 million during the quarter, compared to analysts' expectations of $158.60 million. Braze had a negative net margin of 16.76% and a negative return on equity of 18.89%. Braze's revenue for the quarter was up 19.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.05) earnings per share. On average, analysts forecast that Braze, Inc. will post -0.98 EPS for the current year.

Insider Buying and Selling

In related news, General Counsel Susan Wiseman sold 5,143 shares of Braze stock in a transaction that occurred on Monday, May 19th. The shares were sold at an average price of $35.88, for a total value of $184,530.84. Following the completion of the transaction, the general counsel owned 243,856 shares in the company, valued at $8,749,553.28. The trade was a 2.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Astha Malik sold 13,460 shares of the company's stock in a transaction on Monday, May 19th. The shares were sold at an average price of $35.88, for a total transaction of $482,944.80. Following the completion of the sale, the insider owned 258,395 shares of the company's stock, valued at approximately $9,271,212.60. This trade represents a 4.95% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 79,270 shares of company stock worth $2,749,255 over the last ninety days. 18.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Braze

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. US Bancorp DE raised its stake in shares of Braze by 1.4% during the first quarter. US Bancorp DE now owns 21,314 shares of the company's stock valued at $769,000 after purchasing an additional 302 shares during the period. Mercer Global Advisors Inc. ADV boosted its holdings in shares of Braze by 2.4% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 13,340 shares of the company's stock valued at $559,000 after acquiring an additional 316 shares during the period. Tower Research Capital LLC TRC raised its stake in shares of Braze by 168.0% during the fourth quarter. Tower Research Capital LLC TRC now owns 646 shares of the company's stock valued at $27,000 after purchasing an additional 405 shares in the last quarter. IFP Advisors Inc raised its position in Braze by 15.3% in the first quarter. IFP Advisors Inc now owns 3,386 shares of the company's stock worth $122,000 after acquiring an additional 449 shares in the last quarter. Finally, Dynamic Technology Lab Private Ltd raised its holdings in Braze by 2.4% during the 2nd quarter. Dynamic Technology Lab Private Ltd now owns 19,621 shares of the company's stock worth $551,000 after buying an additional 461 shares during the period. 90.47% of the stock is owned by institutional investors and hedge funds.

About Braze

Braze, Inc operates a customer engagement platform that provides interactions between consumers and brands worldwide. The company offers Braze software development kits that automatically manage data ingestion and deliver mobile and web notifications, in-application/in-browser interstitial messages, and content cards; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; Partner Data Integrations, which allow brands to sync user cohorts from partners; Data Transformation, in which brands can programmatically sync and transform user data; and Braze Cloud Data Ingestion that enables brands to harness their customer data.