Braze (NASDAQ:BRZE) Sets New 12-Month High - Here's What Happened

Key Points

• Braze hit a new 52-week high, reaching $45.99 in intraday trading, above its previous close of $45.79.
• The latest quarter beat analyst expectations: earnings per share were $0.19 versus $0.16 expected, while revenue of $227.23 million exceeded forecasts and rose 26.2% year over year.
• Analyst sentiment is mostly cautious, with 17 Hold ratings and a $43.95 consensus price target. Insiders also sold 518,568 shares worth about $20.2 million over the past 90 days.

Braze, Inc. (NASDAQ:BRZE - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday. The company traded as high as $45.99 and last traded at $45.9040, with a volume of 676,290 shares traded. The stock had previously closed at $45.79.

Wall Street Analysts Forecast Growth

Several brokerages have commented on BRZE. Oppenheimer lowered Braze from an "outperform" rating to a "market perform" rating in a research note on Tuesday, October 20th. JPMorgan Chase & Co. cut their price objective on Braze from $35.00 to $34.00 and set an "overweight" rating on the stock in a research report on Wednesday, September 9th. Stephens cut Braze from an "overweight" rating to a "buy" rating and upped their price target for the stock from $34.00 to $47.50 in a report on Wednesday, October 21st. Citigroup cut shares of Braze from a "buy" rating to a "neutral" rating and reduced their target price for the stock from $48.00 to $47.50 in a research report on Wednesday, October 21st. Finally, Cantor Fitzgerald downgraded shares of Braze from an "overweight" rating to a "hold" rating and set a $47.50 target price for the company. in a research note on Tuesday, October 20th. Five investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $43.95.

Braze Price Performance

The company has a market capitalization of $5.22 billion, a P/E ratio of -44.58 and a beta of 0.77. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.27 and a quick ratio of 1.27. The company has a fifty day moving average price of $31.79 and a 200 day moving average price of $24.82.

Braze (NASDAQ:BRZE - Get Free Report) last released its quarterly earnings data on Tuesday, September 8th. The company reported $0.19 earnings per share for the quarter, topping analysts' consensus estimates of $0.16 by $0.03. The business had revenue of $227.23 million for the quarter, compared to analysts' expectations of $220.27 million. Braze had a negative net margin of 13.55% and a negative return on equity of 16.11%. The company'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 EPS. Braze has set its FY 2027 guidance at 0.640-0.650 EPS and its Q3 2027 guidance at 0.130-0.140 EPS. On average, sell-side analysts forecast that Braze, Inc. will post -0.70 EPS for the current fiscal year.

Insider Activity at Braze

In other Braze news, insider Astha Malik sold 15,724 shares of the company's stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $29.57, for a total value of $464,958.68. Following the completion of the sale, the insider directly owned 326,233 shares in the company, valued at $9,646,709.81. This represents a 4.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Jonathan Hyman sold 20,000 shares of the company's stock in a transaction dated Thursday, October 29th. The shares were sold at an average price of $45.76, for a total transaction of $915,200.00. Following the completion of the sale, the chief technology officer directly owned 828,219 shares of the company's stock, valued at $37,899,301.44. The trade was a 2.36% decrease in their ownership of the stock. 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 518,568 shares of company stock worth $20,231,111 over the last ninety days. 12.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Braze

A number of institutional investors and hedge funds have recently modified their holdings of BRZE. The Manufacturers Life Insurance Company boosted its holdings in shares of Braze by 30.4% during the 1st quarter. The Manufacturers Life Insurance Company now owns 1,885,577 shares of the company's stock worth $44,518,000 after buying an additional 439,513 shares during the period. Dimensional Fund Advisors LP bought a new position in Braze in the 1st quarter worth $14,294,000. Bank of New York Mellon Corp acquired a new stake in shares of Braze in the second quarter valued at about $11,814,000. Glenmede Trust Co. NA grew its position in shares of Braze by 36.5% in the first quarter. Glenmede Trust Co. NA now owns 538,845 shares of the company's stock valued at $12,722,000 after purchasing an additional 144,176 shares during the last quarter. Finally, Squarepoint Ops LLC increased its stake in shares of Braze by 13.3% in the second quarter. Squarepoint Ops LLC now owns 391,337 shares of the company's stock worth $8,488,000 after purchasing an additional 46,049 shares during the period. Institutional investors and hedge funds own 90.47% of the company's stock.

About Braze

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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