Chime Director Sells 277k Shares Amid Revenue Growth

Chime Financial, Inc. (NASDAQ:CHYM) disclosed that director Shawn Carolan executed a sale of 277,007 shares on September 11, 2024. According to the SEC filing, the shares were transacted at an average price of $33.05, resulting in a total value of $9,155,081.35. The sale occurred while the stock traded at $33.97 during mid-day sessions on Monday, marking a $0.97 increase for the day.

The company’s market capitalization stands at $12.86 billion, with a beta of 0.60 indicating lower volatility relative to the broader market. The stock has traded within a twelve-month range of $15.88 to $35.55. Current technical indicators show a 50-day simple moving average of $27.98 and a 200-day average of $22.62, suggesting the current price remains above both long-term trend lines.

Quarterly Revenue Outpaces Prior Year

In its most recent earnings report issued on August 5, Chime Financial reported earnings per share of $0.07 for the quarter. This figure exceeded the consensus estimate of negative $0.01 by $0.08. Revenue for the period reached $669.77 million, representing a 26.8% increase compared to the same quarter in the previous year.

Despite the revenue growth, the company reported a negative net margin of 0.74% and a negative return on equity of 1.28%. The price-to-earnings ratio is recorded at -485.22, reflecting the firm's current loss-making status on a trailing basis. For the current fiscal year, sell-side analysts project earnings per share of $0.44.

Institutional Holdings Shift In Q2

Institutional investors have adjusted their positions in Chime Financial during recent quarters. Spyglass Capital Management LLC increased its holdings by 162.6% in the second quarter, adding 2,109,057 shares to reach a total of 3,406,249 shares valued at approximately $69.76 million. California State Teachers Retirement System also initiated a new position during the second quarter with a stake valued at $59.37 million.

Arrowstreet Capital Limited Partnership significantly expanded its exposure, increasing its position by 2,720.3% in the first quarter to hold 2,756,555 shares worth $51.63 million. Other notable new positions include Ieq Capital LLC, which acquired roughly $58.21 million in shares during the fourth quarter, and Owls Nest Partners IA LLC, which established a position valued at $47.07 million in the same period.

Analyst Ratings Reflect Mixed Outlook

Recent research notes indicate a generally positive stance from financial institutions. Piper Sandler raised its price target to $40.00 and maintained an overweight rating on September 9. Similarly, Goldman Sachs Group increased its price objective to $33.00 with a buy rating in August. UBS Group also adjusted its target upward to $31.00, though it maintained a neutral rating. According to data from GN stocks/nasdaq, the consensus average target price is $36.20.