Braze (NASDAQ:BRZE) Stock Price Down 5.9% - Time to Sell?

Key Points

• Braze shares fell 5.9% to approximately $22.93, with trading volume 87% below the average session volume. The stock remains below its 50-day moving average of $27.54 but above its 200-day average of $24.11.
• Analyst sentiment remains favorable: 20 analysts rate the stock a Buy, one rates it Hold, and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $38.21.
• Braze exceeded quarterly expectations with adjusted EPS of $0.19 versus $0.16 expected and revenue of $227.23 million, up 26.2% year over year. However, the company reported a negative net margin and insiders sold 203,568 shares worth about $6.1 million during the last quarter.

Braze, Inc. (NASDAQ:BRZE - Get Free Report) fell 5.9% during trading on Monday. The stock traded as low as $22.27 and last traded at $22.9270. Approximately 382,565 shares were traded during trading, a decline of 87% from the average session volume of 2,918,352 shares. The stock had previously closed at $24.37.

Wall Street Analyst Weigh In

BRZE has been the topic of a number of recent analyst reports. Canaccord Genuity Group boosted their target price on Braze from $35.00 to $37.00 and gave the stock a "buy" rating in a report on Wednesday, September 9th. Oppenheimer lifted their price objective on shares of Braze from $30.00 to $36.00 and gave the stock an "outperform" rating in a research report on Thursday, August 27th. Stephens reiterated a "hold" rating on shares of Braze in a report on Wednesday, September 9th. Piper Sandler reissued an "overweight" rating and issued a $30.00 price objective (up from $27.00) on shares of Braze in a research report on Wednesday, September 9th. Finally, Raymond James Financial raised their target price on shares of Braze from $27.00 to $33.00 and gave the stock an "outperform" rating in a research note on Wednesday, September 9th. Twenty investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $38.21.

Braze Stock Down 4.4%

The stock has a fifty day moving average price of $27.54 and a two-hundred day moving average price of $24.11. The company has a market cap of $2.65 billion, a price-to-earnings ratio of -22.60 and a beta of 0.88. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 0.02.

Braze (NASDAQ:BRZE - Get Free Report) last released its quarterly earnings results on Tuesday, September 8th. The company reported $0.19 EPS for the quarter, beating the consensus estimate 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 business had revenue of $227.23 million for the quarter, compared to the consensus estimate of $220.27 million. During the same period in the prior year, the company posted $0.15 earnings per share. Braze's revenue 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, sell-side analysts expect that Braze, Inc. will post -0.7 EPS for the current year.

Insiders Place Their Bets

In other news, CRO Edward Mcdonnell sold 29,732 shares of the firm's stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $31.38, for a total transaction of $932,990.16. Following the transaction, the executive directly owned 409,630 shares of the company's stock, valued at approximately $12,854,189.40. This trade represents a 6.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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 shares were 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 owned 1,143,219 shares of the company's stock, valued at approximately $37,120,320.93. The trade was a 3.54% 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 203,568 shares of company stock worth $6,096,461 in the last quarter. Corporate insiders own 12.50% of the company's stock.

Hedge Funds Weigh In On Braze

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Whetstone Capital Advisors LLC acquired a new stake in shares of Braze during the 2nd quarter worth $671,000. Integrated Wealth Concepts LLC bought a new position in Braze in the 2nd quarter valued at about $50,000. Squarepoint Ops LLC raised its position in shares of Braze by 13.3% in the 2nd quarter. Squarepoint Ops LLC now owns 391,337 shares of the company's stock valued at $8,488,000 after buying an additional 46,049 shares in the last quarter. Corient Private Wealth LP raised its position in shares of Braze by 5.5% in the 2nd quarter. Corient Private Wealth LP now owns 102,896 shares of the company's stock valued at $2,232,000 after buying an additional 5,360 shares in the last quarter. Finally, Absolute Gestao de Investimentos Ltda. bought a new stake in shares of Braze during the 2nd quarter worth approximately $325,000. 90.47% of the stock is owned by institutional investors and hedge funds.

Braze Company Profile

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

The Braze platform supports messaging through mobile and web push notifications, in-app messages, email, SMS, and other communication channels. It also provides tools for campaign orchestration, automation, experimentation, analytics, and artificial intelligence to help brands deliver more relevant and timely customer experiences.

Founded in 2011 as Appboy, the company later adopted the Braze name as it expanded its customer engagement offerings.

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