Chime Financial (NASDAQ:CHYM) Upgraded to Strong-Buy at BMO Capital Markets

Key Points

• BMO Capital Markets upgraded Chime Financial (CHYM) to a "Strong-Buy", and MarketBeat shows a consensus rating of "Moderate Buy" with a consensus price target of $31.50.
• Chime beat Q earnings estimates on Feb. 25 with EPS of ($0.12) vs. ($0.20) expected and revenue of $596.4M (up 25.5% YoY), but the company remains unprofitable with a negative net margin of 46.18% and negative ROE.
• Shares opened around $23.81 (1‑year range $16.17–$44.94) with a market cap near $9.15B, and several large investors recently built meaningful positions, including Capital Research Global Investors increasing its stake to 6.88M shares.

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

Other research analysts have also issued research reports about the stock. UBS Group raised their price target on shares of Chime Financial from $24.00 to $27.00 and gave the stock a "neutral" rating in a report on Thursday, February 26th. KeyCorp started coverage on shares of Chime Financial in a report on Wednesday, March 4th. They set an "overweight" rating and a $30.00 price target for the company. The Goldman Sachs Group raised their price target on shares of Chime Financial from $27.00 to $30.00 and gave the stock a "buy" rating in a report on Tuesday, January 6th. Wall Street Zen upgraded shares of Chime Financial from a "hold" rating to a "buy" rating in a report on Sunday, April 12th. Finally, Compass Point upgraded shares of Chime Financial from a "neutral" rating to a "buy" rating and lowered their price target for the stock from $33.00 to $27.00 in a report on Monday, April 13th. Four analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $31.50.

Chime Financial Price Performance

Shares of NASDAQ CHYM opened at $23.81 on Tuesday. The company has a 50 day simple moving average of $20.73 and a 200 day simple moving average of $21.96. The firm has a market cap of $9.15 billion and a PE ratio of -3.15. 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 issued its quarterly earnings data on Wednesday, February 25th. The company reported ($0.12) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.20) by $0.08. The business had revenue of $596.36 million during the quarter. Chime Financial had a negative net margin of 46.18% and a negative return on equity of 70.90%. The firm's quarterly revenue was up 25.5% compared to the same quarter last year. During the same quarter last year, the business earned ($0.30) EPS. As a group, research analysts anticipate that Chime Financial will post 0.16 earnings per share for the current fiscal year.

Institutional Trading of Chime Financial

Several large investors have recently modified their holdings of CHYM. Aspect Management LLC acquired a new stake in shares of Chime Financial during the 4th quarter worth approximately $300,361,000. Ashton Thomas Private Wealth LLC acquired a new stake in shares of Chime Financial during the 4th quarter worth approximately $129,091,000. Orland Properties Ltd acquired a new stake in shares of Chime Financial during the 2nd quarter worth approximately $159,093,000. Scge Management L.P. acquired a new stake in shares of Chime Financial during the 2nd quarter worth approximately $152,563,000. Finally, Capital Research Global Investors grew its position in shares of Chime Financial by 90.0% during the 3rd quarter. Capital Research Global Investors now owns 6,878,057 shares of the company's stock worth $138,730,000 after buying an additional 3,258,179 shares during the period.

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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