Light Street Capital Management LLC Buys 121,474 Shares of Chime Financial, Inc. $CHYM

Key Points

• Light Street Capital increased its Chime Financial stake by 5.8% in the second quarter, adding 121,474 shares to reach 2.2 million shares valued at approximately $45 million.
• Institutional buying was offset by significant insider selling: insiders sold nearly 13.9 million shares worth $451 million during the last quarter, including sizable sales by Global Advisors and CEO Christopher Britt.
• Analysts remain generally optimistic, with Chime holding a “Moderate Buy” consensus rating and an average price target of $32.74. The company also reported quarterly revenue growth of 26.8% and earnings of $0.07 per share, beating estimates.

Light Street Capital Management LLC grew its stake in Chime Financial, Inc. (NASDAQ:CHYM - Free Report) by 5.8% in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 2,199,089 shares of the company's stock after buying an additional 121,474 shares during the quarter. Chime Financial accounts for about 5.0% of Light Street Capital Management LLC's investment portfolio, making the stock its 9th biggest holding. Light Street Capital Management LLC owned about 0.58% of Chime Financial worth $45,037,000 as of its most recent filing with the Securities & Exchange Commission.

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

Insider Buying and Selling

In related news, major shareholder Global Advisors Ltd Dst sold 1,168,667 shares of the firm's stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $33.04, for a total value of $38,612,757.68. Following the completion of the transaction, the insider directly owned 369,370 shares of the company's stock, valued at approximately $12,203,984.80. This trade represents a 75.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Christopher R. Britt sold 200,000 shares of the business's stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $32.04, for a total transaction of $6,408,000.00. 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 quarter, insiders have sold 13,879,790 shares of company stock worth $451,025,723. Company insiders own 12.30% of the company's stock.

Wall Street Analysts Forecast Growth

CHYM has been the subject of several recent research reports. Wolfe Research upped their price objective on Chime Financial from $32.00 to $38.00 and gave the stock an "outperform" rating in a research report on Tuesday, August 25th. UBS Group lifted their target price on Chime Financial from $26.00 to $28.00 and gave the company a "neutral" rating in a research report on Thursday, August 6th. Freedom Capital upgraded Chime Financial to a "strong-buy" rating in a research note on Thursday, July 23rd. The Goldman Sachs Group upped their price target on Chime Financial from $26.00 to $33.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Finally, Wall Street Zen raised shares of Chime Financial from a "hold" rating to a "buy" rating in a research note on Saturday, July 25th. Four research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Chime Financial has a consensus rating of "Moderate Buy" and an average price target of $32.74.

Chime Financial Trading Down 4.3%

Shares of NASDAQ CHYM traded down $1.45 during mid-day trading on Tuesday, hitting $32.31. The company had a trading volume of 5,946,833 shares, compared to its average volume of 5,283,657. The firm has a 50-day simple moving average of $26.75 and a two-hundred day simple moving average of $22.16. The company has a market capitalization of $12.23 billion, a PE ratio of -461.51 and a beta of 0.60. Chime Financial, Inc. has a one year low of $15.88 and a one year high of $34.44.

Chime Financial (NASDAQ:CHYM - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $0.07 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.01) by $0.08. Chime Financial had a negative return on equity of 1.28% and a negative net margin of 0.74%.The business had revenue of $669.77 million for the quarter. During the same quarter in the previous year, the company posted ($7.29) EPS. The business's revenue was up 26.8% on a year-over-year basis. Sell-side analysts expect that Chime Financial, Inc. will post 0.41 earnings per share for the current fiscal year.

Chime Financial 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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