Braze (NASDAQ:BRZE) Stock Price Down 9.4% - Should You Sell?

Key Points

• Shares fell 9.4% to about $22.03 on Wednesday with ~1.83M shares traded (down 41% vs. average), giving a market cap near $2.49B and a negative P/E of -17.98.
• Braze reported Q1 EPS of $0.10, missing estimates of $0.14, while revenue beat at $205.17M and grew 27.9% year‑over‑year.
• Analysts remain mostly positive with a consensus rating of "Moderate Buy" and a consensus price target of $36.90, though several firms recently trimmed their targets.

Braze, Inc. (NASDAQ:BRZE - Get Free Report) traded down 9.4% during trading on Wednesday . The company traded as low as $22.10 and last traded at $22.0310. 1,831,518 shares traded hands during mid-day trading, a decline of 41% from the average session volume of 3,103,048 shares. The stock had previously closed at $24.33.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on BRZE shares. Mizuho reduced their target price on shares of Braze from $50.00 to $40.00 and set an "outperform" rating for the company in a report on Wednesday, March 25th. Needham & Company LLC restated a "buy" rating and issued a $50.00 price target on shares of Braze in a research report on Wednesday, March 25th. Piper Sandler reduced 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. BTIG Research reaffirmed a "buy" rating and set a $30.00 price objective on shares of Braze in a research report on Friday, April 17th. Finally, TD Cowen dropped their target price on Braze from $43.00 to $30.00 and set a "buy" rating on the stock in a report on Friday, March 20th. Twenty-two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Braze presently has a consensus rating of "Moderate Buy" and a consensus price target of $36.90.

Braze Price Performance

The business's 50 day moving average price is $20.96 and its 200-day moving average price is $25.16. The firm has a market capitalization of $2.49 billion, a price-to-earnings ratio of -17.98 and a beta of 0.78.

Braze (NASDAQ:BRZE - Get Free Report) last announced its quarterly earnings data 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 net margin of 17.78% and a negative return on equity of 18.75%. The firm had revenue of $205.17 million during the quarter, compared to analyst estimates of $198.23 million. During the same quarter in the previous year, the business earned $0.12 EPS. Braze's revenue for the quarter was up 27.9% on a year-over-year basis. As a group, analysts expect that Braze, Inc. will post -0.87 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Astha Malik sold 14,049 shares of Braze stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $16.93, for a total value of $237,849.57. Following the sale, the insider directly owned 205,289 shares in the company, valued at $3,475,542.77. The trade was a 6.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO William Magnuson sold 26,413 shares of the company's stock in a transaction on Wednesday, February 18th. The stock was 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 $76,034,289.14. This represents a 0.58% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 95,676 shares of company stock worth $1,737,811. Corporate insiders own 18.20% of the company's stock.

Hedge Funds Weigh In On Braze

Large investors have recently made changes to their positions in the stock. NBC Securities Inc. purchased a new stake in Braze during the fourth quarter worth about $27,000. Fifth Third Bancorp purchased a new position in Braze in the first quarter valued at about $27,000. Caitong International Asset Management Co. Ltd increased its holdings in Braze by 3,650.0% in 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 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 acquiring an additional 1,404 shares during the period. Finally, Quarry LP acquired a new stake in shares of Braze during the 3rd quarter valued at approximately $46,000. Hedge funds and other institutional investors own 90.47% of the company's stock.

About Braze

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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