Chime Financial (NASDAQ:CHYM) Shares Gap Down After Earnings Miss

Key Points

• Chime Financial experienced a significant drop in share price, opening at $31.89 after closing at $33.86, following an earnings report that missed expectations.
• The company's earnings per share (EPS) were reported at ($7.29), falling short of the consensus estimate of ($4.85), despite revenue of $528.15 million surpassing expectations.
• Various analysts have set new price targets for Chime Financial, with an average target price of $37.83 and a consensus of "Moderate Buy" from numerous ratings.

Chime Financial, Inc. (NASDAQ:CHYM - Get Free Report) shares gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $33.86, but opened at $31.89. Chime Financial shares last traded at $30.08, with a volume of 1,685,020 shares.

The company reported ($7.29) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($4.85) by ($2.44). The business had revenue of $528.15 million during the quarter, compared to the consensus estimate of $503.88 million. The firm's quarterly revenue was up 37.5% compared to the same quarter last year.

Analyst Ratings Changes

A number of analysts have issued reports on the company. UBS Group lifted their price target on Chime Financial from $35.00 to $37.00 and gave the stock a "neutral" rating in a report on Friday. The Goldman Sachs Group assumed coverage on Chime Financial in a report on Monday, July 7th. They issued a "neutral" rating and a $34.00 target price for the company. Morgan Stanley began coverage on Chime Financial in a report on Monday, July 7th. They issued an "overweight" rating and a $39.00 target price for the company. Piper Sandler assumed coverage on Chime Financial in a research note on Monday, July 7th. They issued an "overweight" rating and a $40.00 price objective for the company. Finally, Wolfe Research initiated coverage on Chime Financial in a report on Monday, July 7th. They issued an "outperform" rating and a $38.00 price objective for the company. Five investment analysts have rated the stock with a hold rating, nine have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $38.00.

Institutional Trading of Chime Financial

Several institutional investors and hedge funds have recently added to or reduced their stakes in CHYM. Emerald Mutual Fund Advisers Trust purchased a new stake in Chime Financial during the 2nd quarter valued at approximately $113,000. Legal & General Group Plc purchased a new stake in Chime Financial during the 2nd quarter valued at approximately $136,000. ANTIPODES PARTNERS Ltd purchased a new stake in Chime Financial during the 2nd quarter valued at approximately $173,000. Hennessy Advisors Inc. purchased a new position in shares of Chime Financial during the 2nd quarter worth approximately $207,000. Finally, SBI Securities Co. Ltd. purchased a new position in shares of Chime Financial during the 2nd quarter worth approximately $217,000.

Chime Financial Stock Performance

About Chime Financial

Chime is a financial technology company that partners with federally regulated, FDIC-insured banks—The Bancorp Bank, N.A. and Stride Bank, N.A., Members FDIC—to provide consumer banking products and services. The company's model is designed to eliminate common fees and simplify access to basic financial services. Chime does not charge overdraft fees, monthly service fees, or require minimum balances.