Engineers Gate Manager LP Invests $1.81 Million in Chime Financial, Inc. $CHYM

Key Points

• Engineers Gate Manager LP acquired 88,360 Chime Financial shares worth approximately $1.81 million in the second quarter, joining several other institutional investors that increased or initiated positions.
• Chime reported quarterly revenue of $669.77 million, up 26.8% year over year, and earnings of $0.07 per share, beating the consensus estimate of a $0.01 loss.
• Analysts maintain a broadly positive outlook, with a consensus “Buy” rating and a $36.40 target price, although substantial insider selling—including more than $493 million in sales last quarter—could weigh on sentiment.

Engineers Gate Manager LP acquired a new stake in Chime Financial, Inc. (NASDAQ:CHYM - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund acquired 88,360 shares of the company's stock, valued at approximately $1,810,000.

A number of other institutional investors also recently modified their holdings of CHYM. Arrowstreet Capital Limited Partnership boosted its stake 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 acquiring an additional 2,658,816 shares in the last quarter. Ieq Capital LLC bought a new stake in Chime Financial in the fourth quarter valued at $58,214,000. Spyglass Capital Management LLC increased its stake in Chime Financial by 162.6% in the second quarter. Spyglass Capital Management LLC now owns 3,406,249 shares of the company's stock valued at $69,760,000 after purchasing an additional 2,109,057 shares in the last quarter. Owls Nest Partners IA LLC acquired a new position in shares of Chime Financial during the fourth quarter valued at about $47,065,000. Finally, Atreides Management LP acquired a new position in shares of Chime Financial during the fourth quarter valued at about $37,850,000.

Chime Financial Trading Down 1.1%

CHYM opened at $33.61 on Wednesday. Chime Financial, Inc. has a 1-year low of $15.88 and a 1-year high of $35.55. The company has a market cap of $12.72 billion, a price-to-earnings ratio of -480.07 and a beta of 0.60. The company's fifty day moving average price is $28.23 and its two-hundred day moving average price is $22.71.

Chime Financial (NASDAQ:CHYM - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 quarterly revenue was up 26.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($7.29) earnings per share. As a group, equities analysts forecast that Chime Financial, Inc. will post 0.43 earnings per share for the current fiscal year.

Trending Headlines about Chime Financial

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

• Positive Sentiment: Goldman Sachs raised its price target: Goldman lifted its target for Chime from $33 to $37 and assigned a “Buy” rating, implying approximately 10% upside from the referenced $33.61 level. The upgrade suggests greater confidence in the fintech company’s growth outlook.
• Positive Sentiment: Consensus target moved higher: The average analyst price target reportedly increased 10.98% to $38.71, reinforcing the broadly positive view of Chime’s shares. Consensus price target article
• Positive Sentiment: Additional bullish calls support the stock: B. Riley raised its price target from $37 to $44 while maintaining a “Buy” rating, and Rothschild & Co Redburn upgraded Chime from “Hold” to “Buy” with a $46 target. These targets imply substantial potential upside from recent trading levels.
• Neutral Sentiment: Momentum is strong but valuation risk remains: Chime is trading well above its 50-day and 200-day moving averages and close to its annual high. Elevated volume indicates strong investor interest, but the sharp rally may also leave the shares vulnerable to volatility or profit-taking.
• Negative Sentiment: Multiple directors sold large positions: Director Shawn T. Carolan sold a combined 579,313 shares for approximately $19.2 million, reducing one reported holding by 99.41%. Director James Feuille sold 351,890 shares worth about $11.6 million, while Director Cynthia Marshall sold 20,000 shares for approximately $661,800. The transactions could weigh on investor sentiment, although insider sales may also reflect diversification or planned transactions. Chime insider trading report

Insider Transactions at Chime Financial

In other Chime Financial news, insider Ryan King sold 375,000 shares of the business's stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $30.27, for a total transaction of $11,351,250.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Global Advisors Ltd Dst sold 4,456,157 shares of the stock in a transaction that occurred 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. This trade represents a 91.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 15,157,062 shares of company stock valued at $493,525,464 in the last quarter. Company insiders own 12.30% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on CHYM shares. Canaccord Genuity Group raised their target price on Chime Financial from $45.00 to $50.00 and gave the company a "buy" rating in a research note on Wednesday, September 9th. BMO Capital Markets upped their price target on Chime Financial from $28.00 to $32.00 and gave the stock an "outperform" rating in a research note on Thursday, August 6th. Freedom Capital raised Chime Financial to a "strong-buy" rating in a research note on Thursday, July 23rd. KeyCorp increased their price target on Chime Financial from $33.00 to $40.00 and gave the stock an "overweight" rating in a report on Wednesday, September 9th. Finally, Wolfe Research raised their price objective on Chime Financial from $32.00 to $38.00 and gave the company an "outperform" rating in a research note on Tuesday, August 25th. Four investment analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Chime Financial currently has a consensus rating of "Buy" and a consensus target price of $36.40.

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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