Braze (NASDAQ:BRZE) Shares Down 6.4% - What's Next?

Key Points

• Shares fell 6.4% to about $18.73 (intraday low $18.45) on Tuesday, with volume of 516,644 shares — roughly 83% below the average session volume.
• Wall Street maintains a consensus rating of “Moderate Buy” with an average price target of about $44.30, and multiple firms issuing $40–$50 targets, implying significant upside from current levels.
• Braze reported revenue of $190.84M (up 25.5% YoY) and EPS of $0.06 (met estimates) but missed revenue expectations and remains unprofitable, with a negative net margin and negative return on equity (P/E shown as -17.24).

Braze, Inc. (NASDAQ:BRZE - Get Free Report)'s share price traded down 6.4% on Tuesday . The company traded as low as $18.45 and last traded at $18.7330. 516,644 shares traded hands during trading, a decline of 83% from the average session volume of 3,064,169 shares. The stock had previously closed at $20.01.

Wall Street Analyst Weigh In

BRZE has been the subject of a number of research reports. DA Davidson increased their target price on shares of Braze from $40.00 to $42.00 and gave the stock a "buy" rating in a report on Wednesday, December 10th. Stifel Nicolaus set a $40.00 price objective on shares of Braze in a research report on Monday, February 9th. Needham & Company LLC restated a "buy" rating and issued a $50.00 target price on shares of Braze in a research report on Wednesday, January 14th. Wolfe Research raised shares of Braze to an "overweight" rating in a research note on Wednesday, December 10th. Finally, BTIG Research initiated coverage on Braze in a research note on Tuesday, December 16th. They issued a "buy" rating and a $45.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $44.30.

Braze Stock Performance

The company has a market cap of $2.12 billion, a price-to-earnings ratio of -17.24 and a beta of 1.08. The stock's fifty day moving average is $22.84 and its two-hundred day moving average is $27.23.

Braze (NASDAQ:BRZE - Get Free Report) last announced its earnings results on Tuesday, December 9th. The company reported $0.06 earnings per share for the quarter, hitting analysts' consensus estimates of $0.06. Braze had a negative return on equity of 17.87% and a negative net margin of 16.85%.The firm had revenue of $190.84 million for the quarter, compared to the consensus estimate of $198.25 million. During the same quarter in the previous year, the business earned $0.02 EPS. The company's revenue was up 25.5% compared to the same quarter last year. On average, equities research analysts expect that Braze, Inc. will post -0.98 EPS for the current year.

Insider Buying and Selling at Braze

In related news, CAO Pankaj Malik sold 2,893 shares of the firm's stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $16.93, for a total transaction of $48,978.49. Following the transaction, the chief accounting officer directly owned 50,679 shares in the company, valued at $857,995.47. This trade represents a 5.40% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, General Counsel Susan Wiseman sold 4,167 shares of the business's stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $17.03, for a total transaction of $70,964.01. Following the completion of the transaction, the general counsel owned 209,864 shares in the company, valued at $3,573,983.92. The trade was a 1.95% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 66,216 shares of company stock valued at $1,225,772 over the last quarter. Company insiders own 18.20% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd lifted its position in Braze by 3,650.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 825 shares of the company's stock valued at $28,000 after buying an additional 803 shares during the period. Invesco Ltd. increased its stake in shares of Braze by 9.5% in the 4th quarter. Invesco Ltd. now owns 97,486 shares of the company's stock worth $3,343,000 after acquiring an additional 8,495 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its position in Braze by 7.4% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 22,878 shares of the company's stock valued at $784,000 after acquiring an additional 1,582 shares during the period. Papamarkou Wellner Asset Management inc. purchased a new position in Braze during the 4th quarter valued at about $331,000. Finally, XTX Topco Ltd boosted its stake in Braze by 212.3% during the fourth quarter. XTX Topco Ltd now owns 22,517 shares of the company's stock worth $772,000 after acquiring an additional 15,306 shares in the last quarter. 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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