Chime Financial (NASDAQ:CHYM) Stock Price Down 9.3% - What's Next?

Key Points

• Shares fell 9.3% on Tuesday to $17.94 (intraday low $17.90) on light volume of 926,774 shares, down about 77% versus the average session volume; the stock had closed at $19.78 previously.
• Analysts are largely positive: two Strong Buy, eleven Buy, five Hold and one Sell give an average rating of Moderate Buy with an average price target of $32.28.
• Chime beat quarterly EPS estimates (loss of $0.12 vs. $0.20 expected) and revenue rose 25.5% to $596.36M, but the company remains unprofitable with a negative net margin (~46.2%) and negative ROE (~70.9%).

Shares of Chime Financial, Inc. (NASDAQ:CHYM - Get Free Report) fell 9.3% on Tuesday . The company traded as low as $17.90 and last traded at $17.94. 926,774 shares changed hands during trading, a decline of 77% from the average session volume of 3,948,006 shares. The stock had previously closed at $19.78.

Analyst Ratings Changes

CHYM has been the subject of a number of analyst reports. Wall Street Zen upgraded shares of Chime Financial from a "hold" rating to a "buy" rating in a report on Saturday, March 7th. Keefe, Bruyette & Woods upgraded Chime Financial from a "moderate buy" rating to a "strong-buy" rating in a report on Thursday, February 26th. UBS Group raised their price target on Chime Financial from $24.00 to $27.00 and gave the company a "neutral" rating in a report on Thursday, February 26th. B. Riley Financial began coverage on shares of Chime Financial in a research report on Thursday, December 11th. They set a "buy" rating and a $35.00 price target on the stock. Finally, The Goldman Sachs Group lifted their price objective on Chime Financial from $27.00 to $30.00 and gave the company a "buy" rating in a report on Tuesday, January 6th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Chime Financial has an average rating of "Moderate Buy" and an average price target of $32.28.

Chime Financial Trading Down 6.2%

The business has a 50-day moving average of $22.59 and a 200 day moving average of $22.32. The firm has a market capitalization of $7.12 billion and a P/E ratio of -2.45.

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

Insider Buying and Selling at Chime Financial

In other Chime Financial news, General Counsel Adam B. Frankel sold 4,382 shares of the company'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 transaction, the general counsel owned 209,500 shares in the company, valued at approximately $5,717,255. This represents a 2.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Christopher R. Britt sold 50,000 shares of the company's stock in a transaction on Friday, January 9th. The stock was sold at an average price of $28.06, for a total transaction of $1,403,000.00. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 64,882 shares of company stock worth $1,816,685.

Institutional Trading of Chime Financial

Several institutional investors and hedge funds have recently modified their holdings of the stock. Hsbc Holdings PLC purchased a new position in shares of Chime Financial during the fourth quarter valued at approximately $1,274,000. Vident Advisory LLC bought a new stake in shares of Chime Financial in the 4th quarter worth $645,000. Delta Global Management LP raised its holdings in shares of Chime Financial by 1,868.5% in the fourth quarter. Delta Global Management LP now owns 729,383 shares of the company's stock valued at $18,359,000 after purchasing an additional 692,330 shares during the last quarter. NewEdge Advisors LLC raised its holdings in shares of Chime Financial by 8,791.5% in the fourth quarter. NewEdge Advisors LLC now owns 17,783 shares of the company's stock valued at $448,000 after purchasing an additional 17,583 shares during the last quarter. Finally, VARCOV Co. bought a new position in shares of Chime Financial during the fourth quarter valued at about $1,348,000.

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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