KeyCorp Begins Coverage on Chime Financial (NASDAQ:CHYM)

Key Points

• KeyCorp initiated coverage on Chime Financial (NASDAQ:CHYM) with an overweight rating and a $30 price target, implying about a 33% upside from current levels.
• Chime reported Q (EPS −$0.12) that beat estimates (−$0.20) on revenue of $596.4M, up 25.5% year-over-year, but the company remains unprofitable with a negative net margin (−46.18%) and ROE (−70.35%).
• Analysts overall rate Chime a Moderate Buy (2 Strong Buy, 11 Buy, 5 Hold, 1 Sell) with an average price target of $32.28, above the current trading level.

Equities research analysts at KeyCorp began coverage on shares of Chime Financial (NASDAQ:CHYM - Get Free Report) in a research note issued on Tuesday, MarketBeat Ratings reports. The firm set an "overweight" rating and a $30.00 price target on the stock. KeyCorp's price target points to a potential upside of 33.21% from the stock's current price.

Several other analysts have also recently commented on the company. Keefe, Bruyette & Woods raised Chime Financial from a "moderate buy" rating to a "strong-buy" rating in a report on Thursday, February 26th. Rothschild & Co Redburn raised Chime Financial to a "hold" rating in a research note on Monday, January 26th. Williams Trading set a $17.00 price target on Chime Financial in a research report on Monday, November 3rd. Piper Sandler cut their target price on shares of Chime Financial from $35.00 to $30.00 and set an "overweight" rating for the company in a research note on Thursday, November 6th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Chime Financial from $40.00 to $34.00 and set an "overweight" rating for the company in a report on Thursday, November 6th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $32.28.

Chime Financial Stock Performance

CHYM stock opened at $22.52 on Tuesday. Chime Financial has a fifty-two week low of $16.17 and a fifty-two week high of $44.94. The company's 50 day moving average price is $24.12 and its 200 day moving average price is $22.86. The firm has a market capitalization of $8.44 billion and a price-to-earnings ratio of -2.98.

Chime Financial (NASDAQ:CHYM - Get Free Report) last issued its earnings results on Wednesday, February 25th. The company reported ($0.12) earnings per share for the quarter, topping the consensus estimate of ($0.20) by $0.08. The business had revenue of $596.36 million for the quarter. Chime Financial had a negative return on equity of 70.35% and a negative net margin of 46.18%.Chime Financial's revenue was up 25.5% on a year-over-year basis. During the same period last year, the business posted ($0.30) EPS.

Insider Activity

In other Chime Financial news, General Counsel Adam B. Frankel sold 4,382 shares of the business's stock in a transaction dated Thursday, January 8th. The shares were sold at an average price of $27.29, for a total transaction of $119,584.78. Following the completion of the transaction, the general counsel directly owned 209,500 shares of the company's stock, valued at $5,717,255. The trade was a 2.05% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Matthew S. Newcomb sold 10,000 shares of the business's stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $28.01, for a total value of $280,100.00. Following the transaction, the chief financial officer owned 2,240,798 shares of the company's stock, valued at approximately $62,764,751.98. This represents a 0.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 256,539 shares of company stock valued at $6,973,943.

Hedge Funds Weigh In On Chime Financial

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

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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