Traders Purchase Large Volume of Chime Financial Call Options (NASDAQ:CHYM)

Key Points

• Unusual options activity: Investors purchased 5,312 Chime Financial call options, about 83% above the average daily volume of 2,900 contracts.
• Shares rose 3.8% to $23.86 during Monday trading, while the company reported quarterly revenue of $647.4 million, up 24.8% year over year, and EPS of $0.13 versus expectations of $0.03.
• Analyst sentiment remains positive, with a consensus “Buy” rating and an average price target of $29.19, although Chime continues to report a negative net margin and return on equity.

Chime Financial, Inc. (NASDAQ:CHYM - Get Free Report) was the recipient of some unusual options trading on Monday. Stock investors acquired 5,312 call options on the company. This represents an increase of approximately 83% compared to the average daily volume of 2,900 call options.

Chime Financial Trading Up 3.8%

NASDAQ:CHYM traded up $0.87 during midday trading on Monday, hitting $23.86. 705,706 shares of the company traded hands, compared to its average volume of 4,610,624. The firm has a market capitalization of $9.09 billion, a P/E ratio of -3.22 and a beta of 0.30. The firm's fifty day moving average is $19.60 and its 200-day moving average is $20.76. Chime Financial has a 12-month low of $15.88 and a 12-month high of $34.54.

Chime Financial (NASDAQ:CHYM - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported $0.13 EPS for the quarter, topping the consensus estimate of $0.03 by $0.10. Chime Financial had a negative net margin of 41.87% and a negative return on equity of 67.86%. The company had revenue of $647.39 million during the quarter. The firm's revenue for the quarter was up 24.8% compared to the same quarter last year. On average, research analysts expect that Chime Financial will post 0.3 EPS for the current fiscal year.

Analyst Ratings Changes

A number of analysts have issued reports on the company. Barclays started coverage on Chime Financial in a research note on Wednesday, July 8th. They issued an "overweight" rating and a $26.00 price objective on the stock. Weiss Ratings reissued a "sell (e+)" rating on shares of Chime Financial in a research note on Wednesday, June 3rd. BMO Capital Markets reduced their target price on shares of Chime Financial from $30.00 to $28.00 and set an "outperform" rating on the stock in a report on Wednesday, July 22nd. Wall Street Zen upgraded shares of Chime Financial from a "hold" rating to a "buy" rating in a research report on Saturday, July 25th. Finally, Compass Point raised shares of Chime Financial from a "neutral" rating to a "buy" rating and lowered their price target for the company from $33.00 to $27.00 in a report on Monday, April 13th. Five analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Chime Financial currently has a consensus rating of "Buy" and an average price target of $29.19.

Insider Buying and Selling at Chime Financial

In other news, General Counsel Adam B. Frankel sold 3,000 shares of Chime Financial stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $17.50, for a total value of $52,500.00. Following the sale, the general counsel directly owned 303,795 shares of the company's stock, valued at approximately $5,316,412.50. The trade was a 0.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 12.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Chime Financial

A number of large investors have recently made changes to their positions in the company. Handelsbanken Fonder AB bought a new stake in Chime Financial in the second quarter worth about $1,358,000. Affinity Capital Advisors LLC purchased a new position in shares of Chime Financial during the second quarter valued at approximately $325,000. AMS Capital Ltda bought a new position in shares of Chime Financial during the first quarter valued at approximately $3,439,000. NewEdge Advisors LLC grew its stake in shares of Chime Financial by 61.8% during the first quarter. NewEdge Advisors LLC now owns 28,780 shares of the company's stock valued at $539,000 after buying an additional 10,997 shares during the last quarter. Finally, CTC Alternative Strategies Ltd. purchased a new stake in shares of Chime Financial in the first quarter worth approximately $798,000.

About Chime Financial

Chime Financial is a U.S.-based financial technology company offering mobile-first banking services designed to reduce fees and simplify everyday transactions. Founded in 2013 and headquartered in San Francisco, Chime operates a digital bank platform that provides customers with a checking account, a savings account, and a debit card without monthly maintenance fees, overdraft charges, or foreign transaction fees. The company’s platform is accessible via its mobile app, enabling users to manage their finances, track spending, and access customer support from their smartphones.

At the core of Chime’s service offering is its fee-free spending account, which includes early access to direct deposit funds—up to two days before scheduled payday—and instant transaction alerts.

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