Chime Financial (NASDAQ:CHYM) Given New $28.00 Price Target at BMO Capital Markets

Key Points

• BMO Capital Markets cut Chime Financial’s price target from $30 to $28, while keeping an outperform rating. The new target still implies about 28.5% upside from the current price.
• Analyst sentiment is mixed but generally positive: the stock has a Moderate Buy consensus rating and a consensus price target of $29.19. Recent calls include upgrades from Compass Point and Texas Capital, while Weiss Ratings reiterated a sell rating.
• Chime’s latest earnings showed revenue growth of 24.8% year over year to $647.39 million, and EPS of $0.13 beat estimates. However, the company remains unprofitable, with a negative net margin and return on equity.

Chime Financial (NASDAQ:CHYM - Get Free Report) had its target price reduced by analysts at BMO Capital Markets from $30.00 to $28.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage presently has an "outperform" rating on the stock. BMO Capital Markets' target price indicates a potential upside of 28.53% from the stock's current price.

Several other equities analysts have also issued reports on the stock. Compass Point raised shares of Chime Financial from a "neutral" rating to a "buy" rating and decreased their price target for the company from $33.00 to $27.00 in a report on Monday, April 13th. Canaccord Genuity Group reaffirmed a "buy" rating and set a $40.00 price objective on shares of Chime Financial in a research note on Monday, May 11th. Texas Capital upgraded Chime Financial to a "strong-buy" rating in a report on Tuesday, April 14th. Weiss Ratings reissued a "sell (e+)" rating on shares of Chime Financial in a research note on Wednesday, June 3rd. Finally, Wells Fargo & Company increased their price target on Chime Financial from $25.00 to $28.00 and gave the stock an "overweight" rating in a report on Thursday, May 7th. Four investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $29.19.

Chime Financial Price Performance

Shares of CHYM stock traded down $0.55 during trading hours on Wednesday, reaching $21.79. The company had a trading volume of 1,763,519 shares, compared to its average volume of 4,594,567. Chime Financial has a 1-year low of $15.88 and a 1-year high of $38.67. The firm has a market cap of $8.30 billion and a price-to-earnings ratio of -2.93. The company has a 50 day moving average of $18.91 and a 200 day moving average of $21.05.

Chime Financial (NASDAQ:CHYM - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The company reported $0.13 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.03 by $0.10. Chime Financial had a negative net margin of 41.87% and a negative return on equity of 67.86%. The firm had revenue of $647.39 million during the quarter. The business's quarterly revenue was up 24.8% compared to the same quarter last year. As a group, sell-side analysts forecast that Chime Financial will post 0.3 EPS for the current fiscal year.

Insider Buying and Selling

In related news, General Counsel Adam B. Frankel sold 3,000 shares of the company's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $17.50, for a total value of $52,500.00. Following the completion of the transaction, the general counsel directly owned 303,795 shares of the company's stock, valued at approximately $5,316,412.50. This represents a 0.98% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 12.30% of the company's stock.

Institutional Trading of Chime Financial

Several hedge funds and other institutional investors have recently modified their holdings of the company. Farther Finance Advisors LLC lifted its stake in Chime Financial by 2,794.6% in the 4th quarter. Farther Finance Advisors LLC now owns 72,366 shares of the company's stock valued at $1,821,000 after acquiring an additional 69,866 shares in the last quarter. Transcend Capital Advisors LLC bought a new position in shares of Chime Financial during the 4th quarter worth approximately $1,286,000. Baxter Bros Inc. bought a new position in shares of Chime Financial during the 4th quarter worth approximately $2,799,000. Hsbc Holdings PLC acquired a new stake in shares of Chime Financial in the fourth quarter valued at approximately $1,274,000. Finally, Davis Selected Advisers raised its holdings in shares of Chime Financial by 3.0% in the fourth quarter. Davis Selected Advisers now owns 2,472,106 shares of the company's stock valued at $62,223,000 after purchasing an additional 72,940 shares during the last quarter.

About Chime Financial

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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