Braze (NASDAQ:BRZE) Shares Up 8.1% - What's Next?

Key Points

• BRAZE shares jumped 8.1% intraday to about $20.50 on Monday, on volume of ~1.6M shares which was roughly 50% below the 3.22M average.
• The company reported Q1 EPS of $0.10 (missed vs. $0.14 est.) but revenue of $205.17M beat estimates and rose 27.9% YoY, while margins remain negative (net margin -17.78%).
• Analysts maintain a consensus rating of "Moderate Buy" (22 Buys, 1 Hold, 1 Sell) with a consensus target of $36.67; several firms adjusted targets recently (e.g., Barclays to $31, Goldman to $40).

Braze, Inc. (NASDAQ:BRZE - Get Free Report)'s stock price shot up 8.1% during mid-day trading on Monday . The stock traded as high as $20.25 and last traded at $20.4990. 1,599,379 shares changed hands during mid-day trading, a decline of 50% from the average session volume of 3,220,013 shares. The stock had previously closed at $18.97.

Analyst Ratings Changes

A number of research firms recently commented on BRZE. Barclays lifted their price objective on Braze from $29.00 to $31.00 and gave the stock an "overweight" rating in a research report on Wednesday, March 25th. The Goldman Sachs Group reduced their target price on shares of Braze from $45.00 to $40.00 and set a "buy" rating on the stock in a report on Wednesday, March 25th. Canaccord Genuity Group reiterated a "buy" rating and set a $43.00 price target on shares of Braze in a report on Monday, March 23rd. Needham & Company LLC reissued a "buy" rating and set a $50.00 price objective on shares of Braze in a research note on Wednesday, March 25th. Finally, Cantor Fitzgerald reiterated an "overweight" rating and issued a $38.00 price target on shares of Braze in a report on Wednesday, March 25th. Twenty-two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $36.67.

Braze Trading Up 9.6%

The company has a market capitalization of $2.36 billion, a PE ratio of -17.03 and a beta of 0.89. The company's 50 day moving average price is $19.52 and its 200-day moving average price is $25.74.

Braze (NASDAQ:BRZE - Get Free Report) last issued its earnings results on Tuesday, March 24th. The company reported $0.10 earnings per share for the quarter, missing analysts' consensus estimates of $0.14 by ($0.04). The firm had revenue of $205.17 million during the quarter, compared to analyst estimates of $198.23 million. Braze had a negative net margin of 17.78% and a negative return on equity of 18.75%. Braze's revenue was up 27.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.12 EPS. As a group, analysts predict that Braze, Inc. will post -0.98 earnings per share for the current year.

Insider Buying and Selling at Braze

In other Braze news, insider Astha Malik sold 14,049 shares of Braze stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $16.93, for a total transaction of $237,849.57. Following the transaction, the insider directly owned 205,289 shares of the company's stock, valued at $3,475,542.77. The trade was a 6.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO William Magnuson sold 26,413 shares of the business'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 $447,172.09. Following the sale, the chief executive officer owned 4,491,098 shares of the company's stock, valued at approximately $76,034,289.14. This represents a 0.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 60,676 shares of company stock worth $1,027,661. Company insiders own 18.20% of the company's stock.

Hedge Funds Weigh In On Braze

Several hedge funds and other institutional investors have recently made changes to their positions in BRZE. JPMorgan Chase & Co. lifted its stake in shares of Braze by 6.0% during the third quarter. JPMorgan Chase & Co. now owns 2,455,367 shares of the company's stock worth $69,831,000 after purchasing an additional 139,133 shares in the last quarter. SG Americas Securities LLC raised its holdings in shares of Braze by 5,412.5% during the 4th quarter. SG Americas Securities LLC now owns 289,790 shares of the company's stock valued at $9,937,000 after buying an additional 284,533 shares during the period. Jefferies Financial Group Inc. raised its holdings in shares of Braze by 412.2% during the 3rd quarter. Jefferies Financial Group Inc. now owns 99,761 shares of the company's stock valued at $2,837,000 after buying an additional 80,285 shares during the period. Squarepoint Ops LLC acquired a new position in Braze during the 2nd quarter worth approximately $3,273,000. Finally, Optimus Prime Fund Management Co. Ltd. boosted its holdings in Braze by 15.6% in the 3rd quarter. Optimus Prime Fund Management Co. Ltd. now owns 1,780,000 shares of the company's stock worth $50,623,000 after acquiring an additional 240,000 shares during the period. Institutional investors and hedge funds 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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