Braze (NASDAQ:BRZE) Shares Climb 4.7% - Here's What Happened

Key Points

• Braze shares rose 4.7% to about $27.58 in midday trading, though volume was roughly 88% below the average daily level.
• Analysts remain broadly positive, with 19 Buy ratings, one Hold and one Sell; the consensus rating is “Moderate Buy” with a $38.21 price target.
• Braze beat quarterly expectations, reporting $0.19 in adjusted EPS versus $0.16 expected and revenue of $227.23 million, up 26.2% year over year.

Braze, Inc. (NASDAQ:BRZE - Get Free Report)'s stock price shot up 4.7% during mid-day trading on Wednesday. The stock traded as high as $27.14 and last traded at $27.5760. Approximately 359,254 shares were traded during trading, a decline of 88% from the average daily volume of 2,888,742 shares. The stock had previously closed at $26.34.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. Stephens reissued a "hold" rating on shares of Braze in a report on Wednesday, September 9th. Needham & Company LLC reiterated a "buy" rating and set a $50.00 price objective on shares of Braze in a research report on Wednesday, September 9th. DA Davidson restated a "buy" rating and set a $40.00 target price on shares of Braze in a research report on Wednesday, September 9th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $38.00 target price on shares of Braze in a research note on Wednesday, September 9th. Finally, Cantor Fitzgerald reiterated an "overweight" rating and issued a $38.00 price target on shares of Braze in a report on Wednesday, September 30th. Nineteen analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $38.21.

Braze Stock Up 8.2%

The firm has a market capitalization of $3.24 billion, a PE ratio of -27.69 and a beta of 0.91. The company has a fifty day moving average price of $27.75 and a 200-day moving average price of $24.42. The company has a debt-to-equity ratio of 0.02, a quick ratio of 1.27 and a current ratio of 1.27.

Braze (NASDAQ:BRZE - Get Free Report) last posted its earnings results on Tuesday, September 8th. The company reported $0.19 earnings per share for the quarter, beating analysts' consensus estimates of $0.16 by $0.03. Braze had a negative net margin of 13.55% and a negative return on equity of 16.11%. The firm had revenue of $227.23 million during the quarter, compared to analyst estimates of $220.27 million. During the same period last year, the firm posted $0.15 earnings per share. Braze's revenue for the quarter was up 26.2% compared to the same quarter last year. Braze has set its FY 2027 guidance at 0.640-0.650 EPS and its Q3 2027 guidance at 0.130-0.140 EPS. As a group, analysts expect that Braze, Inc. will post -0.7 earnings per share for the current year.

Insider Transactions at Braze

In other Braze news, CRO Edward M. Mcdonnell sold 29,732 shares of the business's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $31.38, for a total transaction of $932,990.16. Following the completion of the transaction, the executive owned 409,630 shares in the company, valued at $12,854,189.40. The trade was a 6.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Astha Malik sold 15,724 shares of the 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 owned 326,233 shares in the company, valued at approximately $9,646,709.81. The trade was a 4.60% 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. In the last quarter, insiders sold 203,568 shares of company stock worth $6,096,461. 12.50% of the stock is currently owned by insiders.

Institutional Trading of Braze

A number of large investors have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd increased its stake in Braze by 3,650.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 825 shares of the company's stock worth $28,000 after buying an additional 803 shares during the period. Fifth Third Bancorp bought a new position in Braze in the 1st quarter worth about $27,000. Harbor Investment Advisory LLC purchased a new position in shares of Braze during the second quarter worth approximately $36,000. Essential Partners LLC increased its position in shares of Braze by 109.8% during the first quarter. Essential Partners LLC now owns 2,174 shares of the company's stock worth $51,000 after acquiring an additional 1,138 shares during the period. Finally, Integrated Wealth Concepts LLC bought a new stake in shares of Braze during the second quarter valued at approximately $50,000. 90.47% of the stock is owned by hedge funds and other institutional investors.

Braze Company Profile

Braze, Inc is a customer engagement software company that helps businesses build and manage personalized interactions with consumers. Its cloud-based platform enables organizations to collect and analyze customer data, create audience segments, and deliver marketing messages across multiple channels.

The Braze platform supports communication through mobile and web applications, email, SMS, messaging services, and other digital channels. Its offerings include campaign orchestration, customer journey management, in-app and browser messaging, personalization, analytics, experimentation, and artificial intelligence tools designed to help companies improve customer retention and engagement.

The company was founded in 2011 as Appboy by Bill Magnuson, Mark Ghermezian, and Jon Hyman, and later adopted the Braze name.

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