Chime Financial (NASDAQ:CHYM) Raised to Strong-Buy at Texas Capital

Key Points

• Texas Capital upgraded Chime Financial to a "strong-buy", joining several other firms that have raised ratings; the MarketBeat consensus is a Moderate Buy with an average price target of $31.58.
• Chime beat quarterly EPS estimates (reported ($0.12) vs. consensus ($0.20)) and posted revenue of $596.4M, up 25.5% year-over-year, but still showed a negative net margin (46.18%) and negative ROE (70.90%).
• The stock was trading higher (up about 5.2%), opened at $23.41 with a market cap of $8.99B, and has a one-year range of $16.17 to $44.94.

Chime Financial (NASDAQ:CHYM - Get Free Report) was upgraded by equities research analysts at Texas Capital to a "strong-buy" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Other analysts have also issued research reports about the stock. Wall Street Zen upgraded shares of Chime Financial from a "hold" rating to a "buy" rating in a research report on Sunday. Compass Point upgraded shares of Chime Financial from a "neutral" rating to a "buy" rating and reduced their price target for the stock from $33.00 to $27.00 in a research report on Monday. KeyCorp started coverage on shares of Chime Financial in a research report on Wednesday, March 4th. They set an "overweight" rating and a $30.00 price target on the stock. Keefe, Bruyette & Woods upgraded shares of Chime Financial from a "moderate buy" rating to a "strong-buy" rating in a research report on Thursday, February 26th. Finally, Rothschild & Co Redburn upgraded shares of Chime Financial to a "hold" rating in a research report on Monday, January 26th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $31.58.

Chime Financial Trading Up 5.2%

NASDAQ CHYM opened at $23.41 on Tuesday. The firm has a market capitalization of $8.99 billion and a price-to-earnings ratio of -3.10. The firm's 50 day simple moving average is $20.51 and its 200 day simple moving average is $21.84. Chime Financial has a 1 year low of $16.17 and a 1 year high of $44.94.

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

Hedge Funds Weigh In On Chime Financial

Several institutional investors and hedge funds have recently added to or reduced their stakes in CHYM. JPMorgan Chase & Co. bought a new position in Chime Financial in the 2nd quarter valued at approximately $693,000. Legal & General Group Plc bought a new position in Chime Financial in the 2nd quarter valued at approximately $136,000. Russell Investments Group Ltd. bought a new position in Chime Financial in the 2nd quarter valued at approximately $958,000. EverSource Wealth Advisors LLC bought a new position in Chime Financial in the 2nd quarter valued at approximately $33,000. Finally, Marshall Wace LLP bought a new position in Chime Financial in the 2nd quarter valued at approximately $9,087,000.

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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