Brown University Makes New $2.59 Million Investment in Chime Financial, Inc. $CHYM

Key Points

• Brown University bought 102,805 shares of Chime Financial (NASDAQ:CHYM) in Q4, a position valued at about $2.588 million that represents 1.8% of Brown's holdings and is its 7th-largest holding.
• Chime posted revenue of $596.36 million (up 25.5% year-over-year) and beat EPS estimates (-$0.12 vs. -$0.20), but remains unprofitable with a negative net margin (~46.2%) and negative return on equity (~70.9%).
• Wall Street sentiment is broadly positive — the stock has an average rating of "Moderate Buy" with an average target of $31.50, and several firms (including Goldman Sachs, Texas Capital and BMO) have issued buy/strong-buy ratings or raised targets into the high-$20s/low-$30s.

Brown University purchased a new position in shares of Chime Financial, Inc. (NASDAQ:CHYM - Free Report) in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 102,805 shares of the company's stock, valued at approximately $2,588,000. Chime Financial makes up 1.8% of Brown University's holdings, making the stock its 7th largest holding.

Other hedge funds also recently bought and sold shares of the company. Federated Hermes Inc. increased its position in Chime Financial by 11.1% during the third quarter. Federated Hermes Inc. now owns 863,700 shares of the company's stock worth $17,421,000 after buying an additional 86,593 shares in the last quarter. Lunate Capital Ltd purchased a new position in Chime Financial during the third quarter worth $36,503,000. Whittier Trust Co. of Nevada Inc. purchased a new position in Chime Financial during the third quarter worth $4,026,000. Renaissance Capital LLC purchased a new position in Chime Financial during the third quarter worth $822,000. Finally, Davis Selected Advisers purchased a new position in Chime Financial during the third quarter worth $48,391,000.

Chime Financial Stock Down 2.0%

Shares of NASDAQ:CHYM opened at $21.62 on Wednesday. The company has a market cap of $8.30 billion and a P/E ratio of -2.86. Chime Financial, Inc. has a 52 week low of $16.17 and a 52 week high of $44.94. The business has a fifty day simple moving average of $20.93 and a 200-day simple moving average of $22.00.

Chime Financial (NASDAQ:CHYM - Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The company reported ($0.12) 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 return on equity of 70.90% and a negative net margin of 46.18%.Chime Financial's revenue for the quarter was up 25.5% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.30) EPS. Sell-side analysts expect that Chime Financial, Inc. will post 0.16 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

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 initiated coverage on shares of Chime Financial in a research note on Wednesday, April 22nd. They issued an "outperform" rating and a $30.00 target price for the company. UBS Group lifted their target price on shares of Chime Financial from $24.00 to $27.00 and gave the stock a "neutral" rating in a research note on Thursday, February 26th. Wall Street Zen raised Chime Financial from a "hold" rating to a "buy" rating in a research report on Sunday, April 12th. Finally, The Goldman Sachs Group lifted their price objective on Chime Financial from $27.00 to $30.00 and gave the company a "buy" rating in a research report on Tuesday, January 6th. Four research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $31.50.

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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