Compass Point Upgrades Chime Financial (NASDAQ:CHYM) to Buy

Key Points

• Compass Point upgraded to a "Buy" on Chime Financial, setting a new $27 price target (down from $33) which implies roughly a 37.7% upside from the current share price.
• Analyst consensus skews positive—two Strong Buy, twelve Buy, four Hold and one Sell—giving Chime a consensus rating of "Moderate Buy" with an average target of $31.94.
• Chime recently beat EPS estimates (reported -$0.12 vs. -$0.20) with revenue of $596.4M, up 25.5% YoY, but the company remains unprofitable (negative P/E and net margin) and its shares trade around $19.61.

Chime Financial (NASDAQ:CHYM - Get Free Report) was upgraded by equities research analysts at Compass Point from a "neutral" rating to a "buy" rating in a research note issued to investors on Monday,Benzinga reports. The brokerage presently has a $27.00 price target on the stock, down from their previous price target of $33.00. Compass Point's target price indicates a potential upside of 37.68% from the company's current price.

CHYM has been the topic of several other reports. Wall Street Zen upgraded Chime Financial from a "hold" rating to a "buy" rating in a research report on Sunday. KeyCorp assumed coverage on Chime Financial in a research report on Wednesday, March 4th. They set an "overweight" rating and a $30.00 price target on the stock. UBS Group upped their price target on Chime Financial from $24.00 to $27.00 and gave the company a "neutral" rating in a research report on Thursday, February 26th. Keefe, Bruyette & Woods upgraded 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 Chime Financial to a "hold" rating in a research report on Monday, January 26th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $31.94.

Chime Financial Stock Performance

Shares of Chime Financial stock opened at $19.61 on Monday. Chime Financial has a 52-week low of $16.17 and a 52-week high of $44.94. The stock's 50-day simple moving average is $20.52 and its 200 day simple moving average is $21.83. The stock has a market capitalization of $7.53 billion and a P/E ratio of -2.59.

Chime Financial (NASDAQ:CHYM - Get Free Report) last announced 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. Chime Financial had a negative return on equity of 70.90% and a negative net margin of 46.18%.The business had revenue of $596.36 million for the quarter. During the same quarter in the prior year, the firm posted ($0.30) earnings per share. The company's revenue was up 25.5% on a year-over-year basis.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of CHYM. PNC Financial Services Group Inc. purchased a new position in shares of Chime Financial during the fourth quarter worth about $25,000. EverSource Wealth Advisors LLC purchased a new position in shares of Chime Financial during the second quarter worth about $33,000. Scopus Asset Management L.P. purchased a new position in shares of Chime Financial during the second quarter worth about $34,000. Caitong International Asset Management Co. Ltd grew its holdings in shares of Chime Financial by 686.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,462 shares of the company's stock worth $37,000 after purchasing an additional 1,276 shares in the last quarter. Finally, Daiwa Securities Group Inc. purchased a new position in shares of Chime Financial during the second quarter worth about $40,000.

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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