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)'s share price gapped down before the market opened 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 trading hands.

The company reported ($7.29) earnings per share (EPS) for the quarter, missing the consensus estimate of ($4.85) by ($2.44). The firm had revenue of $528.15 million for the quarter, compared to the consensus estimate of $503.88 million. The company's quarterly revenue was up 37.5% on a year-over-year basis.

Analysts Set New Price Targets

A number of research firms recently weighed in on CHYM. William Blair assumed coverage on Chime Financial in a report on Monday, July 7th. They set an "outperform" rating on the stock. Canaccord Genuity Group began coverage on Chime Financial in a research note on Monday, July 7th. They set a "buy" rating and a $40.00 price target for the company. Compass Point started coverage on Chime Financial in a report on Wednesday, July 2nd. They issued a "neutral" rating and a $33.00 target price on the stock. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Chime Financial in a report on Thursday, July 17th. They issued a "hold" rating and a $35.00 target price for the company. Finally, Wolfe Research assumed coverage on shares of Chime Financial in a research report on Monday, July 7th. They issued an "outperform" rating and a $38.00 price objective for the company. Five research 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's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $37.83.

Hedge Funds Weigh In On Chime Financial

Hedge funds have recently modified their holdings of the company. Emerald Mutual Fund Advisers Trust bought a new position in Chime Financial during the 2nd quarter valued at about $113,000. ANTIPODES PARTNERS Ltd purchased a new stake in Chime Financial during the 2nd quarter valued at approximately $173,000. Hennessy Advisors Inc. acquired a new stake in shares of Chime Financial during the second quarter worth $207,000. SBI Securities Co. Ltd. purchased a new position in Chime Financial in the 2nd quarter valued at $217,000. Finally, PFG Investments LLC acquired a new position in shares of Chime Financial during the second quarter worth about $350,000.

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.

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