Lunate Capital Ltd Acquires 1,809,763 Shares of Chime Financial, Inc. $CHYM

Key Points

• Lunate Capital initiated a sizable position in Chime Financial, buying 1.81 million shares worth about $48.2 million. The stake represents roughly 0.48% of Chime and 6.7% of Lunate’s portfolio.
• Chime beat quarterly earnings expectations, posting EPS of $0.11 versus $0.09 expected and revenue growth of 32.1% year over year. Analysts’ average rating is Buy, with an average price target of $39.47.
• Insider and shareholder selling may weigh on sentiment: company insiders sold 16.6 million shares worth about $546.8 million over three months, while a separate report cited a major investor sharply reducing its stake.

Lunate Capital Ltd acquired a new position in shares of Chime Financial, Inc. (NASDAQ:CHYM - Free Report) during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 1,809,763 shares of the company's stock, valued at approximately $48,212,000. Chime Financial comprises approximately 6.7% of Lunate Capital Ltd's portfolio, making the stock its 5th largest holding. Lunate Capital Ltd owned about 0.48% of Chime Financial at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. NFSG Corp bought a new position in Chime Financial in the third quarter valued at about $27,000. Reyes Financial Architecture Inc. acquired a new stake in shares of Chime Financial during the third quarter valued at about $39,000. Nisa Investment Advisors LLC grew its holdings in shares of Chime Financial by 529.7% during the third quarter. Nisa Investment Advisors LLC now owns 1,889 shares of the company's stock worth $50,000 after purchasing an additional 1,589 shares during the last quarter. Farther Finance Advisors LLC grew its holdings in shares of Chime Financial by 2.4% during the third quarter. Farther Finance Advisors LLC now owns 72,666 shares of the company's stock worth $1,936,000 after purchasing an additional 1,672 shares during the last quarter. Finally, GAMMA Investing LLC grew its holdings in shares of Chime Financial by 1,316.3% during the third quarter. GAMMA Investing LLC now owns 2,167 shares of the company's stock worth $58,000 after purchasing an additional 2,014 shares during the last quarter.

Insiders Place Their Bets

In other Chime Financial news, Director Cynthia Marshall sold 20,000 shares of the stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $33.09, for a total transaction of $661,800.00. Following the completion of the sale, the director owned 28,548 shares of the company's stock, valued at approximately $944,653.32. This represents a 41.20% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director James Feuille sold 256,837 shares of the firm's stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $32.33, for a total transaction of $8,303,540.21. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 16,634,736 shares of company stock valued at $546,765,870 over the last three months. Insiders own 12.30% of the company's stock.

Key Stories Impacting Chime Financial

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

• Positive Sentiment: Upbeat earnings outlook: Zacks said rising earnings estimates could support further gains. Chime’s latest reported quarter also beat EPS expectations and delivered 32.1% year-over-year revenue growth, providing a positive fundamental backdrop. Article: Surging Earnings Estimates Signal Upside
• Positive Sentiment: Momentum appeal: Zacks also characterized CHYM as a long-term momentum stock, potentially attracting investors focused on stronger-performing shares. Article: Why Chime Is a Top Momentum Stock
• Neutral Sentiment: Short-interest data is unclear: One report describes a large increase but gives short interest as zero shares and a 0.0-day ratio. The figures appear inconsistent, so they do not establish short-covering as a meaningful catalyst.
• Neutral Sentiment: Mixed analyst signal: Monness maintained a Hold rating, while the cited broader analyst consensus was Moderate Buy. Article: Monness Maintains Hold Rating
• Negative Sentiment: Large shareholder selling: Global Advisors Ltd Dst sold 1,319,027 shares for about $41.1 million on November 6, an 80.26% reduction in its position. The additional reported sale of 10,740 shares adds to the potential supply overhang and may unsettle investors. Article: Chime Major Shareholder Sales

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on CHYM shares. JPMorgan Chase & Co. raised their price objective on shares of Chime Financial from $35.00 to $40.00 and gave the company an "overweight" rating in a report on Thursday, November 5th. Deutsche Bank Aktiengesellschaft raised shares of Chime Financial from a "hold" rating to a "buy" rating and boosted their target price for the stock from $30.00 to $35.00 in a report on Thursday, October 8th. Wolfe Research upped their price target on shares of Chime Financial from $32.00 to $38.00 and gave the company an "outperform" rating in a research report on Tuesday, August 25th. UBS Group restated a "buy" rating on shares of Chime Financial in a research report on Thursday, November 5th. Finally, Loop Capital assumed coverage on shares of Chime Financial in a research note on Wednesday, September 9th. They set a "buy" rating and a $45.00 price target for the company. Three research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Buy" and an average target price of $39.47.

Chime Financial Trading Up 0.0%

NASDAQ CHYM opened at $32.54 on Wednesday. The business's 50-day moving average price is $29.91 and its two-hundred day moving average price is $23.96. Chime Financial, Inc. has a 12 month low of $15.88 and a 12 month high of $35.55. The firm has a market capitalization of $12.32 billion, a PE ratio of 171.27 and a beta of 0.74.

Chime Financial (NASDAQ:CHYM - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The company reported $0.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.09 by $0.02. Chime Financial had a return on equity of 6.72% and a net margin of 3.05%. The company had revenue of $718.00 million during the quarter. During the same quarter last year, the business earned ($0.15) earnings per share. Chime Financial's revenue was up 32.1% compared to the same quarter last year. As a group, analysts forecast that Chime Financial, Inc. will post 0.47 earnings per share for the current fiscal year.

About Chime Financial

Chime Financial operates a digital financial services platform for consumers in the United States. Through its mobile app, the company offers spending and savings accounts, debit cards and tools for managing money. Its products also include credit-building services and features designed to help customers access direct deposits and avoid certain common banking fees. Founded in 2012 by Chris Britt and Ryan King, Chime is a financial technology company, not a bank. Banking services are provided through partner banks, including The Bancorp Bank, N.A., and Stride Bank, N.A. Chris Britt has served as the company's chief executive officer.

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