Chime Financial (NASDAQ:CHYM) Stock Price Down 5.2% After Insider Selling

Key Points

• Chime Financial shares fell about 5.2% to $31.86 after major shareholders and directors sold substantial stakes. Global Advisors sold 207,513 shares for roughly $6.9 million, while director Shawn Carolan sold more than 579,000 shares in reported transactions.
• Analyst sentiment remains broadly positive: Chime has a consensus “Buy” rating, with recent price-target increases ranging from $40 to $46 and an average target of $36.40.
• The company reported 26.8% year-over-year revenue growth to $669.77 million and quarterly earnings of $0.07 per share, beating expectations; however, the stock remains near its 52-week high, potentially increasing volatility and profit-taking risk.

Chime Financial, Inc. (NASDAQ:CHYM - Get Free Report)'s stock price dropped 5.2% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $32.08 and last traded at $31.86. Approximately 2,155,342 shares traded hands during mid-day trading, a decline of 60% from the average daily volume of 5,419,634 shares. The stock had previously closed at $33.61.

Specifically, major shareholder Global Advisors Ltd Dst sold 207,513 shares of Chime Financial stock in a transaction on Friday, September 11th. The stock was sold at an average price of $33.07, for a total value of $6,862,454.91. Following the transaction, the insider directly owned 366,872 shares in the company, valued at $12,132,457.04. The trade was a 36.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Shawn Carolan sold 302,306 shares of the firm's stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $33.21, for a total transaction of $10,039,582.26. Following the completion of the transaction, the director directly owned 1,800 shares of the company's stock, valued at $59,778. This represents a 99.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In other news, Director Shawn Carolan sold 277,007 shares of the firm's stock in a transaction on Friday, September 11th. The shares were sold at an average price of $33.05, for a total transaction of $9,155,081.35. The transaction was disclosed in a filing with the SEC, which is accessible through this link.

Analyst Ratings Changes

Several brokerages have commented on CHYM. B. Riley Financial increased their price target on Chime Financial from $37.00 to $44.00 and gave the company a "buy" rating in a report on Monday. BMO Capital Markets increased their price objective on shares of Chime Financial from $28.00 to $32.00 and gave the stock an "outperform" rating in a report on Thursday, August 6th. KeyCorp lifted their price target on shares of Chime Financial from $33.00 to $40.00 and gave the stock an "overweight" rating in a research report on Wednesday, September 9th. Loop Capital initiated coverage on Chime Financial in a report on Wednesday, September 9th. They set a "buy" rating and a $45.00 price objective on the stock. Finally, Freedom Capital raised shares of Chime Financial to a "strong-buy" rating in a research note on Thursday, July 23rd. Four equities 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 given a Sell rating to the stock. According to MarketBeat.com, Chime Financial currently has a consensus rating of "Buy" and an average price target of $36.40.

Key Stories Impacting Chime Financial

Here are the key news stories impacting Chime Financial this week:

• Positive Sentiment: Analysts raised targets and ratings: B. Riley increased its price target from $37 to $44 and maintained a “Buy” rating. Rothschild & Co. Redburn upgraded Chime to “Buy” and set a $46 target. Goldman Sachs also raised its target from $33 to $37 and assigned a “Buy” rating. The reported consensus target rose 10.98% to $38.71. B. Riley price target article Redburn upgrade article
• Positive Sentiment: Recent operating results remain supportive: Chime’s latest quarterly revenue increased 26.8% year over year to $669.77 million, while adjusted earnings of $0.07 per share exceeded the consensus estimate of a $0.01 loss. Analysts expect approximately $0.43 in earnings per share for the current year.
• Neutral Sentiment: Shares remain near their annual high: Chime is trading well above its 50-day and 200-day moving averages and near its 52-week high of $35.55. This reflects strong recent momentum but may also increase volatility and the risk of profit-taking.
• Negative Sentiment: Heavy insider selling is a near-term headwind: Major shareholder Global Advisors Ltd. Dst sold 207,513 shares for approximately $6.9 million, reducing its position by 36.13%. The transaction follows several earlier large sales by the shareholder. Directors also sold substantial amounts: Shawn Carolan sold 579,313 shares, James Feuille sold more than 350,000 shares across reported transactions, and Cynthia Marshall sold 20,000 shares. The scale and concentration of these disposals may weigh on investor sentiment, even though insider sales can reflect diversification or planned transactions. Chime insider selling report

Chime Financial Stock Down 4.9%

The company's 50 day moving average is $28.23 and its 200 day moving average is $22.71. The firm has a market capitalization of $12.10 billion, a price-to-earnings ratio of -455.59 and a beta of 0.60.

Chime Financial (NASDAQ:CHYM - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.07 earnings per share for the quarter, beating analysts' consensus estimates of ($0.01) by $0.08. Chime Financial had a negative net margin of 0.74% and a negative return on equity of 1.28%. The company had revenue of $669.77 million for the quarter. During the same quarter in the previous year, the business posted ($7.29) earnings per share. The company's revenue for the quarter was up 26.8% on a year-over-year basis. On average, analysts expect that Chime Financial, Inc. will post 0.43 EPS for the current year.

Institutional Investors Weigh In On Chime Financial

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

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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