33,786 Shares in Chime Financial, Inc. $CHYM Acquired by Arizona State Retirement System

Key Points

• Arizona State Retirement System acquired 33,786 Chime Financial shares in the second quarter, valued at approximately $692,000. Several other institutional investors also initiated or increased positions in CHYM.
• Analyst sentiment remains positive: Barclays, Morgan Stanley, Goldman Sachs and other firms raised price targets or upgraded the stock. The consensus rating is “Buy,” with an average price target of $36.40.
• Chime reported 26.8% year-over-year revenue growth and quarterly EPS of $0.07, beating expectations, while its planned $590 million acquisition of Stride Bank’s parent could strengthen its banking infrastructure. However, substantial insider and shareholder selling, along with regulatory and integration risks, continues to weigh on sentiment.

Arizona State Retirement System acquired a new stake in Chime Financial, Inc. (NASDAQ:CHYM - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 33,786 shares of the company's stock, valued at approximately $692,000.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in CHYM. Murphy & Mullick Capital Management Corp purchased a new stake in Chime Financial during the 1st quarter valued at about $44,000. Leonteq Securities AG purchased a new position in Chime Financial in the 4th quarter worth approximately $93,000. PNC Financial Services Group Inc. lifted its stake in Chime Financial by 835.7% in the 1st quarter. PNC Financial Services Group Inc. now owns 9,394 shares of the company's stock worth $176,000 after purchasing an additional 8,390 shares in the last quarter. OMERS ADMINISTRATION Corp acquired a new position in shares of Chime Financial during the 1st quarter worth approximately $189,000. Finally, Affinity Capital Advisors LLC acquired a new position in shares of Chime Financial during the 2nd quarter worth approximately $325,000.

Analyst Ratings Changes

Several brokerages have recently weighed in on CHYM. Barclays boosted their price target on shares of Chime Financial from $33.00 to $40.00 and gave the company an "overweight" rating in a research report on Wednesday, September 9th. UBS Group raised their price objective on shares of Chime Financial from $28.00 to $31.00 and gave the stock a "neutral" rating in a research report on Wednesday, September 9th. Freedom Capital raised shares of Chime Financial to a "strong-buy" rating in a research note on Thursday, July 23rd. Wall Street Zen upgraded shares of Chime Financial from a "hold" rating to a "buy" rating in a report on Saturday, July 25th. Finally, Morgan Stanley increased their price target on shares of Chime Financial from $39.00 to $40.00 and gave the company an "overweight" rating in a research note on Wednesday, September 9th. Four analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Buy" and a consensus price target of $36.40.

Chime Financial Stock Performance

NASDAQ:CHYM opened at $30.72 on Friday. The stock has a market capitalization of $11.63 billion, a P/E ratio of -438.79 and a beta of 0.60. The company has a 50 day moving average price of $28.63 and a 200 day moving average price of $22.82. Chime Financial, Inc. has a fifty-two week low of $15.88 and a fifty-two week high of $35.55.

Chime Financial (NASDAQ:CHYM - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $0.07 earnings per share for the quarter, beating the consensus estimate of ($0.01) by $0.08. The firm had revenue of $669.77 million during the quarter. Chime Financial had a negative net margin of 0.74% and a negative return on equity of 1.28%. The firm's revenue for the quarter was up 26.8% on a year-over-year basis. During the same quarter last year, the business posted ($7.29) EPS. Research analysts forecast that Chime Financial, Inc. will post 0.44 earnings per share for the current fiscal year.

Chime Financial News Summary

Here are the key news stories impacting Chime Financial this week:

• Positive Sentiment: Analyst support remains strong: Goldman Sachs raised its price target to $37, while B. Riley increased its target to $44. Rothschild & Co Redburn also upgraded CHYM to “Buy” and reportedly set a $46 target, signaling continued confidence in Chime’s growth prospects. Goldman Sachs raises Chime price target B. Riley raises Chime price target Rothschild upgrades Chime
• Positive Sentiment: Bank acquisition provides long-term upside: Chime agreed to acquire Central Service Corporation, parent of Stride Bank, for $590 million in cash. Subject to regulatory approval, the deal would give Chime greater control of its banking infrastructure and potentially improve long-term economics, although integration and capital requirements remain important considerations. Chime bank acquisition analysis
• Positive Sentiment: Recent operating trends are favorable: Chime’s latest quarterly results included 26.8% year-over-year revenue growth, $0.07 in earnings per share versus a $0.01 loss estimate, and revenue of approximately $670 million. The company also reported 10.4 million active members and raised its full-year outlook.
• Neutral Sentiment: New York office opening: The new office expands Chime’s corporate footprint but is unlikely to materially affect near-term earnings or valuation. Chime opens New York office
• Negative Sentiment: Heavy insider and shareholder selling is weighing on sentiment: Director James Feuille sold 352,237 shares in two reported transactions worth about $11.6 million, General Counsel Adam Frankel sold roughly $3.4 million of stock, and Global Advisors Ltd. DST sold 3.2 million shares for approximately $109.3 million, reducing its position by 90.5%. Some sales were made under pre-arranged plans, but the lack of reported open-market purchases and the scale of selling can reinforce profit-taking concerns. Chime insider selling report
• Negative Sentiment: Investors are reassessing the acquisition and valuation: Regulatory approval, integration costs and capital needs could delay or reduce the benefits of the Stride transaction. Following the recent run-up, those uncertainties have contributed to increased volatility and a pullback in CHYM.

Insider Activity at Chime Financial

In other news, major shareholder Global Advisors Ltd Dst sold 4,456,157 shares of Chime Financial stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $32.66, for a total value of $145,538,087.62. Following the completion of the sale, the insider directly owned 405,663 shares of the company's stock, valued at approximately $13,248,953.58. The trade was a 91.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders sold 18,827,490 shares of company stock worth $617,797,141 in the last ninety days. Company insiders own 12.30% of the company's stock.

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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