Chime Financial, Inc. (NASDAQ:CHYM) Stock Rated "Buy" by Sell-Side Brokerages

Key Points

• Analysts broadly favor Chime Financial: Twenty-four research firms give the stock an average “Buy” rating, with an average 12-month price target of $36.40 versus its reported $26.78 opening price.
• Chime reported better-than-expected quarterly results, posting $0.07 in EPS versus a $0.01 loss estimate and $669.77 million in revenue, up 26.8% year over year.
• Insider selling has been significant: Insiders sold 18.83 million shares worth about $617.8 million over the past quarter, including large sales by directors Shawn Carolan and Cynthia Marshall.

Shares of Chime Financial, Inc. (NASDAQ:CHYM - Get Free Report) have been assigned an average rating of "Buy" from the twenty-four research firms that are covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating, seventeen have issued a buy rating and four have given a strong buy rating to the company. The average 12-month price objective among analysts that have updated their coverage on the stock in the last year is $36.40.

CHYM has been the topic of several analyst reports. Wall Street Zen raised shares of Chime Financial from a "hold" rating to a "buy" rating in a research report on Saturday, July 25th. BMO Capital Markets lifted their target price on Chime Financial from $28.00 to $32.00 and gave the company an "outperform" rating in a research report on Thursday, August 6th. Zacks Research raised Chime Financial from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 18th. Keefe, Bruyette & Woods upped their target price on Chime Financial from $30.00 to $35.00 and gave the stock an "outperform" rating in a report on Thursday, August 6th. Finally, Freedom Capital raised Chime Financial to a "strong-buy" rating in a research report on Thursday, July 23rd.

Chime Financial Stock Down 1.1%

NASDAQ CHYM opened at $26.78 on Friday. The firm's 50 day moving average is $29.42 and its 200-day moving average is $23.05. The company has a market capitalization of $10.14 billion, a PE ratio of -382.52 and a beta of 0.60. Chime Financial has a 12-month low of $15.88 and a 12-month high of $35.55.

Chime Financial (NASDAQ:CHYM - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.07 EPS for the quarter, topping the consensus estimate of ($0.01) by $0.08. Chime Financial had a negative net margin of 0.74% and a negative return on equity of 1.28%. The business had revenue of $669.77 million during the quarter. During the same quarter in the previous year, the company posted ($7.29) EPS. The business's revenue for the quarter was up 26.8% compared to the same quarter last year. As a group, sell-side analysts expect that Chime Financial will post 0.44 EPS for the current year.

Insider Activity at Chime Financial

In other news, Director Shawn Carolan sold 277,007 shares of the company's stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $33.05, for a total transaction of $9,155,081.35. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Cynthia Marshall sold 20,000 shares of the stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $33.09, for a total value of $661,800.00. Following the completion of the sale, the director directly owned 28,548 shares of the company's stock, valued at approximately $944,653.32. The trade was a 41.20% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 18,827,490 shares of company stock worth $617,797,141. Insiders own 12.30% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of CHYM. Spyglass Capital Management LLC increased its stake in shares of Chime Financial by 162.6% during the 2nd quarter. Spyglass Capital Management LLC now owns 3,406,249 shares of the company's stock worth $69,760,000 after purchasing an additional 2,109,057 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in Chime Financial by 2,720.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,756,555 shares of the company's stock worth $51,630,000 after purchasing an additional 2,658,816 shares during the period. Ieq Capital LLC bought a new position in Chime Financial during the fourth quarter worth about $58,214,000. Light Street Capital Management LLC grew its holdings in Chime Financial by 5.8% during the second quarter. Light Street Capital Management LLC now owns 2,199,089 shares of the company's stock worth $45,037,000 after purchasing an additional 121,474 shares during the period. Finally, Owls Nest Partners IA LLC acquired a new position in Chime Financial during the fourth quarter worth approximately $47,065,000.

About Chime Financial

Chime Financial, Inc is a financial technology company that operates a digital banking platform in the United States. Chime provides consumer-focused banking services through its mobile application and website, offering checking and savings accounts, debit cards, direct-deposit services and tools designed to help customers manage their everyday finances. Chime is not a traditional bank; its banking services are provided through partner financial institutions.

The company's products include a Visa debit card, fee-free overdraft protection through SpotMe for eligible members, early access to qualifying direct deposits, savings features and credit-building products.

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