Chime Financial (NASDAQ:CHYM) Downgraded by Wall Street Zen to Hold

Key Points

• Wall Street Zen downgraded Chime Financial (NASDAQ:CHYM) from "buy" to "hold," though the consensus remains a Moderate Buy with an average price target of $32.28 (2 Strong Buy, 11 Buy, 5 Hold, 1 Sell).
• Chime beat Q4 EPS estimates (reported -$0.12 vs. -$0.20 expected) and revenue rose 25.5% year-over-year to $596.36 million, but the company still shows a negative net margin (46.18%) and negative return on equity (-70.90%).
• Shares opened at $19.24 with a market cap of $7.39 billion and a 12-month range of $16.17–$44.94, while insiders sold a total of 64,882 shares (~$1.82M) in the last quarter.

Chime Financial (NASDAQ:CHYM - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

Several other equities research analysts have also recently issued reports on the company. The Goldman Sachs Group boosted their price target on Chime Financial from $27.00 to $30.00 and gave the company a "buy" rating in a research note on Tuesday, January 6th. Keefe, Bruyette & Woods upgraded Chime Financial from a "moderate buy" rating to a "strong-buy" rating in a research note on Thursday, February 26th. Rothschild & Co Redburn raised Chime Financial to a "hold" rating in a report on Monday, January 26th. UBS Group upped their target price on Chime Financial from $24.00 to $27.00 and gave the company a "neutral" rating in a research report on Thursday, February 26th. Finally, KeyCorp started coverage on Chime Financial in a report on Wednesday, March 4th. They set an "overweight" rating and a $30.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $32.28.

Chime Financial Price Performance

Shares of Chime Financial stock opened at $19.24 on Friday. The stock has a market capitalization of $7.39 billion and a price-to-earnings ratio of -2.54. Chime Financial has a twelve month low of $16.17 and a twelve month high of $44.94. The company has a 50-day simple moving average of $21.16 and a two-hundred day simple moving average of $21.99.

Chime Financial (NASDAQ:CHYM - Get Free Report) last announced its earnings results on Wednesday, February 25th. The company reported ($0.12) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.20) by $0.08. Chime Financial had a negative net margin of 46.18% and a negative return on equity of 70.90%. The firm had revenue of $596.36 million for the quarter. During the same quarter in the previous year, the company earned ($0.30) EPS. The business's revenue for the quarter was up 25.5% on a year-over-year basis.

Insider Activity at Chime Financial

In other Chime Financial news, General Counsel Adam B. Frankel sold 4,382 shares of the business's stock in a transaction on Thursday, January 8th. The shares were sold at an average price of $27.29, for a total transaction of $119,584.78. Following the sale, the general counsel owned 209,500 shares of the company's stock, valued at approximately $5,717,255. The trade was a 2.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Matthew S. Newcomb sold 10,000 shares of the company's stock in a transaction on Friday, January 9th. The stock was sold at an average price of $28.01, for a total transaction of $280,100.00. Following the transaction, the chief financial officer owned 2,240,798 shares of the company's stock, valued at $62,764,751.98. This trade represents a 0.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 64,882 shares of company stock valued at $1,816,685 in the last quarter.

Institutional Investors Weigh In On Chime Financial

A number of hedge funds and other institutional investors have recently bought and sold shares of CHYM. PNC Financial Services Group Inc. bought a new position in shares of Chime Financial during the fourth quarter worth about $25,000. EverSource Wealth Advisors LLC bought a new stake in Chime Financial in the second quarter valued at approximately $33,000. Scopus Asset Management L.P. acquired a new stake in Chime Financial during the 2nd quarter valued at approximately $34,000. Caitong International Asset Management Co. Ltd increased its position in Chime Financial by 686.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,462 shares of the company's stock valued at $37,000 after purchasing an additional 1,276 shares during the period. Finally, Daiwa Securities Group Inc. bought a new position in Chime Financial during the 2nd quarter worth approximately $40,000.

Chime Financial Company Profile

Chime Financial is a U.S.-based financial technology company offering mobile-first banking services designed to reduce fees and simplify everyday transactions. Founded in 2013 and headquartered in San Francisco, Chime operates a digital bank platform that provides customers with a checking account, a savings account, and a debit card without monthly maintenance fees, overdraft charges, or foreign transaction fees. The company’s platform is accessible via its mobile app, enabling users to manage their finances, track spending, and access customer support from their smartphones.

At the core of Chime’s service offering is its fee-free spending account, which includes early access to direct deposit funds—up to two days before scheduled payday—and instant transaction alerts.

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