Bank of New York Mellon Corp Reduces Stock Position in Chime Financial, Inc. $CHYM

Key Points

• Bank of New York Mellon cut its Chime Financial position by 28.3% in the first quarter, selling 41,357 shares and retaining 104,907 shares valued at approximately $1.97 million.
• Chime reported quarterly EPS of $0.07, beating estimates by $0.08, while revenue rose 26.8% year over year to $669.77 million. Analysts maintain a “Moderate Buy” consensus with an average price target of $31.06.
• Insiders sold heavily: company insiders sold 2.61 million shares worth approximately $82.9 million over the past 90 days, including a 375,000-share sale by Ryan A. King under a pre-arranged trading plan.

Bank of New York Mellon Corp cut its holdings in Chime Financial, Inc. (NASDAQ:CHYM - Free Report) by 28.3% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 104,907 shares of the company's stock after selling 41,357 shares during the period. Bank of New York Mellon Corp's holdings in Chime Financial were worth $1,965,000 at the end of the most recent reporting period.

Other hedge funds have also recently made changes to their positions in the company. PNC Financial Services Group Inc. bought a new stake in Chime Financial during the fourth quarter worth approximately $25,000. EverSource Wealth Advisors LLC bought a new position in shares of Chime Financial during the 2nd quarter valued at approximately $33,000. Scopus Asset Management L.P. purchased a new stake in Chime Financial during the 2nd quarter valued at $34,000. Caitong International Asset Management Co. Ltd raised its holdings in Chime Financial by 686.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,462 shares of the company's stock valued at $37,000 after buying an additional 1,276 shares during the period. Finally, Daiwa Securities Group Inc. bought a new stake in Chime Financial in the second quarter worth $40,000.

Chime Financial Price Performance

CHYM stock opened at $30.85 on Tuesday. Chime Financial, Inc. has a 12 month low of $15.88 and a 12 month high of $33.41. The firm's 50-day moving average is $20.76 and its 200 day moving average is $20.83. The company has a market capitalization of $11.75 billion, a PE ratio of -440.65 and a beta of 0.30.

Chime Financial (NASDAQ:CHYM - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.07 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.01) by $0.08. The company 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%. Chime Financial's quarterly revenue was up 26.8% on a year-over-year basis. During the same period last year, the firm earned ($7.29) earnings per share. Sell-side analysts forecast that Chime Financial, Inc. will post 0.34 EPS for the current fiscal year.

Analyst Ratings Changes

CHYM has been the subject of several recent analyst reports. Texas Capital raised shares of Chime Financial to a "strong-buy" rating in a research note on Tuesday, April 14th. BMO Capital Markets lifted their price target on shares of Chime Financial from $28.00 to $32.00 and gave the stock an "outperform" rating in a research note on Thursday, August 6th. B. Riley Financial upped their price target on shares of Chime Financial from $35.00 to $37.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Wall Street Zen raised shares of Chime Financial from a "hold" rating to a "buy" rating in a research report on Saturday, July 25th. Finally, Canaccord Genuity Group boosted their target price on Chime Financial from $40.00 to $45.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Three investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $31.06.

Insider Activity

In related news, CAO Amine Asmerom sold 10,000 shares of Chime Financial stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $30.00, for a total value of $300,000.00. Following the completion of the sale, the chief accounting officer directly owned 216,946 shares in the company, valued at $6,508,380. The trade was a 4.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ryan A. King sold 375,000 shares of the business's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $30.27, for a total transaction of $11,351,250.00. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 2,612,196 shares of company stock valued at $82,922,714. Company insiders own 12.30% of the company's stock.

Trending Headlines about Chime Financial

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

• Positive Sentiment: Analysts raised their price targets for CHYM to $35, $28, and $37, signaling improved expectations for the company’s outlook. Chime Financial Price Target Raised to $35 Chime Financial Price Target Raised to $28 Chime Financial Price Target Raised to $37
• Positive Sentiment: Additional target increases to $32 and $33 reinforce the generally constructive analyst view, though the targets span a wide range. Chime Financial Price Target Raised to $32 Chime Financial Price Target Raised to $33
• Neutral Sentiment: The target range of $28 to $37 suggests analysts remain divided on the appropriate valuation, particularly after the stock’s recent rally.
• Negative Sentiment: Executives sold a combined 800,000 shares: CEO Christopher Britt sold 350,000, insider Ryan King sold 375,000, CFO Matthew Newcomb sold 65,000, and CAO Amine Asmerom sold 10,000. The transactions generated approximately $23.97 million in proceeds. Each executive sale was made under a pre-arranged Rule 10b5-1 plan, reducing—but not eliminating—the bearish signal.
• Negative Sentiment: Major shareholder Global Advisors Ltd. Dst sold 1.80 million shares for approximately $58.6 million, reducing its position by 79.19%. The large secondary selling may create an overhang and raise concerns about near-term supply of shares.

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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