Braze (NASDAQ:BRZE) Shares Down 4.8% - Here's Why

Key Points

• Braze shares fell 4.8% on Tuesday, trading as low as $24.98 amid significantly lighter volume than usual, indicating a sharp intraday pullback.
• Despite the stock drop, recent analyst sentiment remains mostly positive: Braze has a Moderate Buy consensus rating and a consensus price target of $34.76, though Weiss Ratings reiterated a sell rating.
• The company’s latest earnings showed revenue growth of 30.2% year over year to $211 million, with EPS meeting estimates at $0.10 and guidance for Q2 2027 set at $0.15-$0.16 EPS.

Braze, Inc. (NASDAQ:BRZE - Get Free Report)'s stock price fell 4.8% during mid-day trading on Tuesday . The company traded as low as $24.98 and last traded at $24.94. 505,742 shares traded hands during trading, a decline of 83% from the average session volume of 3,038,592 shares. The stock had previously closed at $26.19.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on BRZE. Weiss Ratings reiterated a "sell (e+)" rating on shares of Braze in a research report on Tuesday, July 7th. Needham & Company LLC restated a "buy" rating and issued a $50.00 price objective on shares of Braze in a research report on Wednesday, March 25th. UBS Group reaffirmed an "outperform" rating on shares of Braze in a research note on Thursday, May 28th. Mizuho reduced their price objective on shares of Braze from $40.00 to $32.00 and set an "outperform" rating for the company in a research note on Thursday, May 28th. Finally, Barclays upped their target price on shares of Braze from $29.00 to $31.00 and gave the stock an "overweight" rating in a report on Wednesday, March 25th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $34.76.

Braze Stock Down 5.8%

The firm's 50-day simple moving average is $22.91 and its 200-day simple moving average is $22.40. The firm has a market capitalization of $2.78 billion, a PE ratio of -22.05 and a beta of 0.85.

Braze (NASDAQ:BRZE - Get Free Report) last released its quarterly earnings data on Wednesday, May 27th. The company reported $0.10 earnings per share for the quarter, meeting analysts' consensus estimates of $0.10. Braze had a negative return on equity of 17.52% and a negative net margin of 15.51%.The firm had revenue of $211.00 million during the quarter, compared to analyst estimates of $205.19 million. During the same quarter in the prior year, the firm posted $0.07 earnings per share. The business's quarterly revenue was up 30.2% compared to the same quarter last year. Braze has set its Q2 2027 guidance at 0.150-0.160 EPS. On average, equities research analysts forecast that Braze, Inc. will post -0.76 earnings per share for the current year.

Hedge Funds Weigh In On Braze

Hedge funds have recently modified their holdings of the company. Vanguard Group Inc. increased its stake in shares of Braze by 10.0% in the 4th quarter. Vanguard Group Inc. now owns 9,851,050 shares of the company's stock worth $337,793,000 after acquiring an additional 892,635 shares in the last quarter. Dana Investment Advisors Inc. purchased a new position in Braze during the 4th quarter valued at about $1,980,000. SG Americas Securities LLC boosted its stake in Braze by 5,412.5% during the fourth quarter. SG Americas Securities LLC now owns 289,790 shares of the company's stock worth $9,937,000 after acquiring an additional 284,533 shares in the last quarter. Stephens Investment Management Group LLC boosted its stake in Braze by 8.7% during the fourth quarter. Stephens Investment Management Group LLC now owns 1,233,143 shares of the company's stock worth $42,284,000 after acquiring an additional 98,854 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. grew its holdings in Braze by 232,716.3% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 100,111 shares of the company's stock worth $3,433,000 after purchasing an additional 100,068 shares during the period. Hedge funds and other institutional investors own 90.47% of the company's stock.

Braze Company Profile

Braze, Inc is a publicly traded software company NASDAQ: BRZE that offers a customer engagement platform designed to help brands build personalized relationships with their users. Founded in 2011 as Appboy by Bill Magnuson, Jon Hyman and Mark Ghermezian, the company adopted the Braze name in 2017 to underscore its focus on fostering strong connections between businesses and consumers. Its cloud-based platform consolidates messaging channels including push notifications, in-app messages, email and SMS, enabling companies to deliver timely, context-driven communications at scale.

The core functionality of Braze's platform centers on data-driven segmentation, customer journey orchestration and real-time analytics.

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