Braze (NASDAQ:BRZE) Trading Down 8.6% - Here's What Happened

Key Points

• Braze shares fell 8.6% to about $24.52 in mid-day trading, with volume down 94% from the average session.
• Despite the decline, analyst sentiment remains favorable: 18 analysts rate the stock a Buy, one rates it a Strong Buy, and the average price target is $34.76.
• Braze reported quarterly revenue of $211 million, up 30.2% year over year and above expectations, while adjusted EPS of $0.10 matched consensus estimates.

Shares of Braze, Inc. (NASDAQ:BRZE - Get Free Report) dropped 8.6% during mid-day trading on Thursday . The company traded as low as $24.43 and last traded at $24.5240. 179,453 shares traded hands during trading, a decline of 94% from the average session volume of 3,003,235 shares. The stock had previously closed at $26.83.

Wall Street Analyst Weigh In

BRZE has been the subject of several recent analyst reports. DA Davidson reissued a "buy" rating and issued a $33.00 price target on shares of Braze in a report on Thursday, May 28th. UBS Group reaffirmed an "outperform" rating on shares of Braze in a report on Thursday, May 28th. BTIG Research reissued a "buy" rating and issued a $30.00 target price on shares of Braze in a report on Tuesday, May 26th. Citizens Jmp reissued a "market outperform" rating and issued a $35.00 target price on shares of Braze in a report on Thursday, May 28th. Finally, TD Cowen restated a "buy" rating on shares of Braze in a research report on Monday, June 15th. One 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 stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $34.76.

Braze Price Performance

The firm has a market cap of $2.82 billion, a PE ratio of -22.36 and a beta of 0.85. The business has a 50-day moving average price of $23.31 and a two-hundred day moving average price of $21.96.

Braze (NASDAQ:BRZE - Get Free Report) last released its quarterly earnings results on Wednesday, May 27th. The company reported $0.10 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.10. The business had revenue of $211.00 million during the quarter, compared to the consensus estimate of $205.19 million. Braze had a negative return on equity of 17.52% and a negative net margin of 15.51%.The business's revenue was up 30.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.07 EPS. Braze has set its Q2 2027 guidance at 0.150-0.160 EPS. Equities analysts expect that Braze, Inc. will post -0.78 earnings per share for the current fiscal year.

Institutional Trading of Braze

Several institutional investors and hedge funds have recently modified their holdings of the business. Alyeska Investment Group L.P. increased its stake in shares of Braze by 592.4% during the 4th quarter. Alyeska Investment Group L.P. now owns 2,105,024 shares of the company's stock worth $72,181,000 after purchasing an additional 1,801,019 shares in the last quarter. UBS Group AG lifted its stake in Braze by 421.1% in the 3rd quarter. UBS Group AG now owns 1,279,678 shares of the company's stock valued at $36,394,000 after buying an additional 1,034,087 shares in the last quarter. Battery Management CORP. lifted its stake in Braze by 70.2% in the 3rd quarter. Battery Management CORP. now owns 2,425,000 shares of the company's stock valued at $68,967,000 after buying an additional 1,000,000 shares in the last quarter. Bank of America Corp DE grew its holdings in Braze by 238.2% during the 3rd quarter. Bank of America Corp DE now owns 1,351,227 shares of the company's stock valued at $38,429,000 after buying an additional 951,674 shares during the last quarter. Finally, Vanguard Group Inc. grew its holdings in Braze by 10.0% during the 4th quarter. Vanguard Group Inc. now owns 9,851,050 shares of the company's stock valued at $337,793,000 after buying an additional 892,635 shares during 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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