Stock Traders Purchase High Volume of Call Options on Braze (NASDAQ:BRZE)

Key Points

• Braze call-option activity surged: Investors purchased 10,245 call options, 447% above the typical daily volume of 1,872 contracts, signaling unusually strong options interest.
• The stock jumped sharply to $45.28 in heavy trading, near its 52-week high of $45.58. Braze’s latest results also exceeded expectations, with quarterly revenue of $227.23 million and EPS of $0.19.
• Analysts remain broadly bullish: Nineteen analysts rate the stock Buy, with a consensus “Moderate Buy” rating and an average price target of $38.21, although insiders have sold 203,568 shares over the past 90 days.

Braze, Inc. (NASDAQ:BRZE - Get Free Report) was the recipient of some unusual options trading on Tuesday. Investors purchased 10,245 call options on the company. This is an increase of 447% compared to the typical daily volume of 1,872 call options.

Braze Stock Performance

NASDAQ:BRZE traded up $15.24 during mid-day trading on Tuesday, hitting $45.28. 42,759,517 shares of the company traded hands, compared to its average volume of 3,031,543. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 0.02. The stock's fifty day moving average price is $28.27 and its 200-day moving average price is $24.93. The firm has a market cap of $5.14 billion, a price-to-earnings ratio of -43.97 and a beta of 0.91. Braze has a one year low of $15.26 and a one year high of $45.58.

Braze (NASDAQ:BRZE - Get Free Report) last posted its quarterly earnings data on Tuesday, September 8th. The company reported $0.19 EPS for the quarter, topping the consensus estimate of $0.16 by $0.03. The firm had revenue of $227.23 million for the quarter, compared to the consensus estimate of $220.27 million. Braze had a negative return on equity of 16.11% and a negative net margin of 13.55%. The business's revenue for the quarter was up 26.2% compared to the same quarter last year. During the same quarter last year, the company earned $0.15 earnings per share. Braze has set its FY 2027 guidance at 0.640-0.650 EPS and its Q3 2027 guidance at 0.130-0.140 EPS. Research analysts anticipate that Braze will post -0.70 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Astha Malik sold 33,656 shares of Braze stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $27.65, for a total value of $930,588.40. Following the completion of the sale, the insider directly owned 278,138 shares in the company, valued at $7,690,515.70. The trade was a 10.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Jonathan Hyman sold 42,000 shares of Braze stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $32.47, for a total transaction of $1,363,740.00. Following the completion of the sale, the chief technology officer directly owned 1,143,219 shares of the company's stock, valued at approximately $37,120,320.93. This trade represents a 3.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 203,568 shares of company stock valued at $6,096,461 over the last ninety days. 12.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. State of Alaska Department of Revenue boosted its stake in Braze by 32.5% during the third quarter. State of Alaska Department of Revenue now owns 5,578 shares of the company's stock valued at $140,000 after buying an additional 1,367 shares during the last quarter. Juncture Wealth Strategies LLC bought a new stake in Braze in the third quarter worth about $210,000. Whetstone Capital Advisors LLC purchased a new position in Braze during the 2nd quarter valued at $671,000. Integrated Wealth Concepts LLC bought a new position in shares of Braze in the second quarter worth about $50,000. Finally, Squarepoint Ops LLC increased its position in shares of Braze by 13.3% during the second quarter. Squarepoint Ops LLC now owns 391,337 shares of the company's stock worth $8,488,000 after acquiring an additional 46,049 shares during the period. 90.47% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

BRZE has been the topic of several research reports. Cantor Fitzgerald reissued an "overweight" rating and issued a $38.00 target price on shares of Braze in a research report on Wednesday, September 30th. DA Davidson reaffirmed a "buy" rating and set a $40.00 price target on shares of Braze in a research report on Wednesday, September 9th. The Goldman Sachs Group reiterated a "buy" rating and issued a $38.00 price objective on shares of Braze in a research note on Wednesday, September 9th. TD Cowen raised their price objective on shares of Braze from $30.00 to $36.00 and gave the stock a "buy" rating in a report on Thursday, August 27th. Finally, Raymond James Financial boosted their target price on shares of Braze from $27.00 to $33.00 and gave the company an "outperform" rating in a research report on Wednesday, September 9th. Nineteen analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $38.21.

Braze Company Profile

Braze, Inc is a customer engagement software company that provides a platform for businesses to build, manage and measure personalized interactions with consumers. Its technology is designed to help brands communicate with customers across digital channels, including mobile applications, websites, email, SMS and messaging services.

The Braze platform supports customer data collection and segmentation, campaign creation, journey orchestration, experimentation and engagement analytics. Its capabilities include in-app and web messaging, push notifications, email marketing, content personalization and automated lifecycle campaigns.

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