Ranger Investment Management L.P. Invests $24.34 Million in Chime Financial, Inc. $CHYM

Key Points

• Ranger Investment Management acquired 1.19 million Chime Financial shares worth approximately $24.34 million, representing about 0.31% of the company and 1.5% of Ranger’s portfolio.
• Chime’s latest quarterly results exceeded expectations, with EPS of $0.07 versus an expected $0.01 loss and revenue rising 26.8% year over year to $669.77 million. Analysts broadly remain bullish, with a “Moderate Buy” consensus and several firms raising price targets.
• Insider selling is a notable risk: company insiders sold 9.7 million shares valued at approximately $313.1 million during the last quarter, while major shareholder Global Advisors sharply reduced its position through August sales.

Ranger Investment Management L.P. bought a new stake in Chime Financial, Inc. (NASDAQ:CHYM - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 1,188,661 shares of the company's stock, valued at approximately $24,344,000. Chime Financial makes up approximately 1.5% of Ranger Investment Management L.P.'s holdings, making the stock its 21st biggest holding. Ranger Investment Management L.P. owned approximately 0.31% of Chime Financial at the end of the most recent reporting period.

Other institutional investors have also made changes to their positions in the company. AMS Capital Ltda acquired a new stake in shares of Chime Financial in the first quarter valued at approximately $3,439,000. Arrowstreet Capital Limited Partnership raised its position in Chime Financial by 2,720.3% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,756,555 shares of the company's stock worth $51,630,000 after purchasing an additional 2,658,816 shares during the last quarter. Hsbc Holdings PLC acquired a new position in Chime Financial during the 4th quarter worth $1,274,000. Davis Selected Advisers lifted its holdings in Chime Financial by 3.0% during the 4th quarter. Davis Selected Advisers now owns 2,472,106 shares of the company's stock worth $62,223,000 after buying an additional 72,940 shares in the last quarter. Finally, Brown University boosted its position in Chime Financial by 99.0% in the 1st quarter. Brown University now owns 204,625 shares of the company's stock valued at $3,833,000 after buying an additional 101,820 shares during the last quarter.

Key Headlines Impacting Chime Financial

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

• Positive Sentiment: Zacks Research upgraded Chime Financial from “hold” to “strong buy.” Zacks also highlighted the stock’s recent momentum and improving earnings expectations, reinforcing the bullish case for CHYM. Zacks upgrade
• Positive Sentiment: A Morgan Stanley analyst reportedly expects Chime Financial shares to rise, adding further support from Wall Street to the recent advance. Morgan Stanley outlook
• Positive Sentiment: Chime’s latest quarterly results exceeded expectations, with earnings of $0.07 per share versus the $0.01-per-share loss analysts expected. Revenue increased 26.8% year over year to approximately $669.8 million, signaling improving operating performance.
• Neutral Sentiment: Chief Executive Officer Chris Britt is scheduled to participate in a Goldman Sachs technology conference on September 9. Any updated guidance or commentary could influence investor sentiment, but the event has no immediate financial impact. Goldman Sachs conference announcement
• Negative Sentiment: Major shareholder Global Advisors Ltd. Dst sold 4.46 million CHYM shares for about $145.5 million on August 19, after selling 353,812 shares worth roughly $11.4 million on August 18. The transactions reduced its position by 91.66% and 44.16%, respectively, and could pressure the stock if continued selling increases available supply. SEC insider transaction filing

Chime Financial Stock Performance

Chime Financial stock opened at $32.78 on Monday. The firm has a market capitalization of $12.41 billion, a P/E ratio of -468.22 and a beta of 0.31. Chime Financial, Inc. has a 1 year low of $15.88 and a 1 year high of $33.74. The business has a 50-day moving average of $23.39 and a 200-day moving average of $21.22.

Chime Financial (NASDAQ:CHYM - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.07 EPS for the quarter, beating analysts' consensus estimates of ($0.01) by $0.08. The company had revenue of $669.77 million during the quarter. Chime Financial had a negative return on equity of 1.28% and a negative net margin of 0.74%.The business's revenue was up 26.8% compared to the same quarter last year. During the same period last year, the company earned ($7.29) earnings per share. Research analysts anticipate that Chime Financial, Inc. will post 0.41 EPS for the current fiscal year.

Insider Buying and Selling

In other Chime Financial news, CEO Christopher R. Britt sold 150,000 shares of Chime Financial stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $30.16, for a total transaction of $4,524,000.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Amine Asmerom sold 10,000 shares of the stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $30.00, for a total value of $300,000.00. Following the sale, the chief accounting officer directly owned 216,946 shares of the company's stock, valued at approximately $6,508,380. The trade was a 4.41% decrease in their ownership of the stock. 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 sold 9,701,440 shares of company stock valued at $313,102,529. 12.30% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several research firms have recently commented on CHYM. Canaccord Genuity Group lifted their target price on Chime Financial from $40.00 to $45.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Barclays raised their price target on Chime Financial from $26.00 to $33.00 and gave the company an "overweight" rating in a report on Friday, August 7th. Freedom Capital raised shares of Chime Financial to a "strong-buy" rating in a research note on Thursday, July 23rd. Keefe, Bruyette & Woods lifted their target price on shares of Chime Financial from $30.00 to $35.00 and gave the stock an "outperform" rating in a report on Thursday, August 6th. Finally, Piper Sandler upped their target price on shares of Chime Financial from $30.00 to $35.00 and gave the company an "overweight" rating in a research report on Thursday, August 6th. Four research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $31.39.

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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