Chime Financial (NASDAQ:CHYM) Shares Down 6.7% - Time to Sell?

Key Points

• Chime Financial shares fell 6.7% to $26.69 in midday trading, with volume significantly below the stock’s average.
• Despite the decline, analysts remain broadly bullish: the stock has a consensus “Buy” rating and an average price target of $36.40, above its recent trading price.
• Chime reported stronger-than-expected quarterly earnings of $0.07 per share and $669.77 million in revenue, up 26.8% year over year, but insiders have sold roughly $617.8 million of shares over the past 90 days.

Chime Financial, Inc. (NASDAQ:CHYM - Get Free Report) fell 6.7% on Wednesday . The company traded as low as $27.49 and last traded at $26.69. 444,874 shares traded hands during mid-day trading, a decline of 92% from the average daily volume of 5,531,291 shares. The stock had previously closed at $28.62.

Analysts Set New Price Targets

A number of research firms have recently weighed in on CHYM. Freedom Capital raised Chime Financial to a "strong-buy" rating in a research note on Thursday, July 23rd. Wolfe Research boosted their price target on Chime Financial from $32.00 to $38.00 and gave the company an "outperform" rating in a research note on Tuesday, August 25th. Keefe, Bruyette & Woods raised their price objective on shares of Chime Financial from $30.00 to $35.00 and gave the company an "outperform" rating in a research report on Thursday, August 6th. Piper Sandler lifted their target price on shares of Chime Financial from $35.00 to $40.00 and gave the company an "overweight" rating in a research note on Wednesday, September 9th. Finally, Morgan Stanley increased their price target on shares of Chime Financial from $39.00 to $40.00 and gave the stock an "overweight" rating in a research note on Wednesday, September 9th. Four research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $36.40.

Chime Financial Trading Down 5.9%

The company has a market cap of $10.20 billion, a price-to-earnings ratio of -384.82 and a beta of 0.60. The company has a fifty day moving average price of $29.14 and a two-hundred day moving average price of $22.97.

Chime Financial (NASDAQ:CHYM - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.07 earnings per share for the quarter, beating the consensus estimate of ($0.01) by $0.08. The company had revenue of $669.77 million for the quarter. Chime Financial had a negative return on equity of 1.28% and a negative net margin of 0.74%.The company's revenue for the quarter was up 26.8% on a year-over-year basis. During the same quarter in the prior year, the company posted ($7.29) earnings per share. Sell-side analysts anticipate that Chime Financial, Inc. will post 0.44 EPS for the current fiscal year.

Insider Transactions at Chime Financial

In other news, major shareholder Global Advisors Ltd Dst sold 4,456,157 shares of the company's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $32.66, for a total transaction of $145,538,087.62. Following the transaction, the insider owned 405,663 shares of the company's stock, valued at $13,248,953.58. This represents a 91.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Over the last 90 days, insiders sold 18,827,490 shares of company stock worth $617,797,141. 12.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Chime Financial

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Spyglass Capital Management LLC grew its position in shares of Chime Financial by 162.6% in the 2nd quarter. Spyglass Capital Management LLC now owns 3,406,249 shares of the company's stock valued at $69,760,000 after purchasing an additional 2,109,057 shares during the period. Ieq Capital LLC acquired a new stake in Chime Financial during the 4th quarter worth approximately $58,214,000. Arrowstreet Capital Limited Partnership lifted its stake in Chime Financial by 2,720.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,756,555 shares of the company's stock valued at $51,630,000 after buying an additional 2,658,816 shares in the last quarter. Owls Nest Partners IA LLC bought a new position in Chime Financial in the fourth quarter valued at approximately $47,065,000. Finally, Light Street Capital Management LLC boosted its holdings in shares of Chime Financial by 5.8% in the second quarter. Light Street Capital Management LLC now owns 2,199,089 shares of the company's stock valued at $45,037,000 after buying an additional 121,474 shares during the period.

Chime Financial Company Profile

Chime Financial, Inc is a financial technology company that operates a digital banking platform in the United States. Chime provides consumer-focused banking services through its mobile application and website, offering checking and savings accounts, debit cards, direct-deposit services and tools designed to help customers manage their everyday finances. Chime is not a traditional bank; its banking services are provided through partner financial institutions.

The company's products include a Visa debit card, fee-free overdraft protection through SpotMe for eligible members, early access to qualifying direct deposits, savings features and credit-building products.

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