Braze (NASDAQ:BRZE) Stock Price Down 5.4% - Should You Sell?

Key Points

• BRAZE shares fell 5.4% to about $19.57 on Friday on very light trading (251,070 shares, ~92% below average), trading near the 50‑day moving average ($19.56) and well below the 200‑day MA ($25.93).
• The company reported revenue of $205.17M (beat consensus, +27.9% YoY) but missed EPS ($0.10 vs. $0.14), remains unprofitable with negative margins, and analysts have trimmed targets even as the consensus rating is a Moderate Buy with an average price target of $36.67.
• Insiders including the CEO and CAO sold shares in February (about 60,676 shares worth ~$1.03M), while institutional ownership is reported very high (~90%), suggesting mixed signals from management and large investors.

Braze, Inc. (NASDAQ:BRZE - Get Free Report)'s stock price fell 5.4% on Friday . The company traded as low as $19.43 and last traded at $19.5710. 251,070 shares changed hands during trading, a decline of 92% from the average session volume of 3,167,518 shares. The stock had previously closed at $20.68.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on BRZE. Cantor Fitzgerald reissued an "overweight" rating and set a $38.00 price objective on shares of Braze in a research note on Wednesday, March 25th. UBS Group dropped their price objective on Braze from $43.00 to $28.00 and set a "buy" rating for the company in a research note on Wednesday, March 25th. Piper Sandler dropped their price objective on Braze from $30.00 to $27.00 and set an "overweight" rating for the company in a research note on Wednesday, March 25th. Citizens Jmp dropped their price objective on Braze from $68.00 to $35.00 and set a "market outperform" rating for the company in a research note on Wednesday, March 25th. Finally, Mizuho dropped their price objective on Braze from $50.00 to $40.00 and set an "outperform" rating for the company in a research note on Wednesday, March 25th. Twenty-two analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $36.67.

Braze Stock Performance

The stock has a fifty day moving average of $19.56 and a 200 day moving average of $25.93. The company has a market capitalization of $2.18 billion, a P/E ratio of -15.71 and a beta of 0.89.

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

Insider Activity

In other news, CAO Pankaj Malik sold 2,893 shares of Braze stock in a transaction dated 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 of the company's stock, valued at $857,995.47. The trade was a 5.40% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO William Magnuson sold 26,413 shares of Braze stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $16.93, for a total value of $447,172.09. Following the transaction, the chief executive officer directly owned 4,491,098 shares in the company, valued at approximately $76,034,289.14. The trade was a 0.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 60,676 shares of company stock worth $1,027,661. 18.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. NBC Securities Inc. purchased a new position in shares of Braze during the 4th quarter valued at about $27,000. Caitong International Asset Management Co. Ltd lifted its position in shares of Braze by 3,650.0% during the 4th 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 in the last quarter. Osaic Holdings Inc. lifted its position in shares of Braze by 821.1% during the 2nd quarter. Osaic Holdings Inc. now owns 1,575 shares of the company's stock valued at $44,000 after buying an additional 1,404 shares in the last quarter. Quarry LP purchased a new position in shares of Braze during the 3rd quarter valued at about $46,000. Finally, Clearstead Advisors LLC lifted its position in shares of Braze by 58.2% during the 3rd quarter. Clearstead Advisors LLC now owns 1,685 shares of the company's stock valued at $48,000 after buying an additional 620 shares in the last quarter. 90.47% of the stock is owned by hedge funds and other institutional investors.

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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