Wells Fargo & Company Begins Coverage on Chime Financial (NASDAQ:CHYM)

Key Points

• Wells Fargo initiated coverage of Chime Financial (NASDAQ:CHYM) with an overweight rating and a $25 price target, implying roughly a 27.5% upside from the prior close.
• Analysts' consensus is a Moderate Buy with an average price target of $31.58, and several firms (including Goldman Sachs, UBS and KeyCorp) have recently raised targets or started coverage.
• Chime beat EPS expectations last quarter (‑$0.12 vs. ‑$0.20) with 25.5% revenue growth to $596.4M, but remains unprofitable (negative net margin ~46% and negative ROE) and currently trades near $19.61 with a $7.53B market cap.

Wells Fargo & Company started coverage on shares of Chime Financial (NASDAQ:CHYM - Get Free Report) in a research report issued to clients and investors on Monday. The brokerage set an "overweight" rating and a $25.00 price target on the stock. Wells Fargo & Company's price objective suggests a potential upside of 27.49% from the stock's previous close.

CHYM has been the subject of several other reports. Keefe, Bruyette & Woods upgraded shares of Chime Financial from a "moderate buy" rating to a "strong-buy" rating in a report on Thursday, February 26th. UBS Group upped their price target on shares of Chime Financial from $24.00 to $27.00 and gave the stock a "neutral" rating in a report on Thursday, February 26th. Rothschild & Co Redburn upgraded shares of Chime Financial to a "hold" rating in a report on Monday, January 26th. The Goldman Sachs Group upped their price target on shares of Chime Financial from $27.00 to $30.00 and gave the stock a "buy" rating in a report on Tuesday, January 6th. Finally, KeyCorp started coverage on shares of Chime Financial in a report on Wednesday, March 4th. They set an "overweight" rating and a $30.00 price target for the company. Two research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $31.58.

Chime Financial Price Performance

Shares of CHYM opened at $19.61 on Monday. Chime Financial has a one year low of $16.17 and a one year high of $44.94. The company has a market cap of $7.53 billion and a P/E ratio of -2.59. The firm has a 50 day simple moving average of $20.52 and a two-hundred day simple moving average of $21.83.

Chime Financial (NASDAQ:CHYM - Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The company reported ($0.12) EPS for the quarter, beating the consensus estimate of ($0.20) by $0.08. Chime Financial had a negative net margin of 46.18% and a negative return on equity of 70.90%. The business had revenue of $596.36 million during the quarter. During the same quarter in the prior year, the firm earned ($0.30) earnings per share. The firm's revenue for the quarter was up 25.5% on a year-over-year basis.

Institutional Trading of Chime Financial

Institutional investors have recently modified their holdings of the business. Federated Hermes Inc. grew its stake in shares of Chime Financial by 11.1% in the third quarter. Federated Hermes Inc. now owns 863,700 shares of the company's stock worth $17,421,000 after purchasing an additional 86,593 shares during the last quarter. U.S. Capital Wealth Advisors LLC grew its stake in shares of Chime Financial by 1,203.2% in the third quarter. U.S. Capital Wealth Advisors LLC now owns 81,450 shares of the company's stock worth $1,643,000 after purchasing an additional 75,200 shares during the last quarter. HMI Capital Management L.P. bought a new stake in shares of Chime Financial in the second quarter worth $43,853,000. Lunate Capital Ltd bought a new stake in Chime Financial during the third quarter valued at $36,503,000. Finally, Whittier Trust Co. of Nevada Inc. bought a new stake in Chime Financial during the third quarter valued at $4,026,000.

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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