Chime Financial Director Liquidates 99% of Position
Director Shawn Carolan sold 302,306 shares of Chime Financial for approximately $10 million, reducing his direct ownership to 1,800 shares.
Chime Financial, Inc. (NASDAQ:CHYM) disclosed on the SEC website that director Shawn Carolan completed a large-scale stock sale on September 10. The transaction involved the sale of 302,306 shares at an average price of $33.21, generating a total value of $10,039,582.26. Following this trade, Carolan’s direct ownership dropped to 1,800 shares, representing a 99.41% decrease in his previous position. This move marks a significant exit from the company’s equity for the director, leaving a residual stake valued at approximately $59,778.
The stock price action surrounding the sale shows recent momentum. CHYM shares closed at $33.97 on Monday, up $0.97 from the prior day. Trading volume reached 9,854,087 shares, exceeding the average volume of 6,981,155. The company’s market capitalization stands at $12.86 billion. According to data reported by GN stocks/nasdaq, the stock has a 50-day simple moving average of $27.98 and a 200-day simple moving average of $22.62. The 12-month trading range spans from a low of $15.88 to a high of $35.55, indicating the recent sale occurred near the upper end of this yearly range.
Quarterly Earnings Beat Estimates
Chime Financial reported its most recent quarterly results on August 5, delivering a positive surprise to the market. The company posted earnings per share of $0.07, which exceeded the consensus estimate of a $0.01 loss by $0.08. This performance marks a significant year-over-year improvement, as the same quarter last year resulted in a loss of $7.29 per share. Revenue for the period reached $669.77 million, a 26.8% increase compared to the prior year period. Despite the top-line growth and EPS beat, the company maintained a negative net margin of 0.74% and a negative return on equity of 1.28%.
Analysts Raise Price Targets
Following the earnings release and recent trading activity, several investment firms adjusted their outlooks for Chime Financial. BMO Capital Markets raised its price target from $28.00 to $32.00 and maintained an outperform rating on August 6. Barclays increased its target from $33.00 to $40.00 on September 9, reaffirming an overweight stance. Wolfe Research lifted its target from $32.00 to $38.00 on August 25 with an outperform rating. These adjustments contribute to an average analyst target price of $36.20, based on a consensus of 24 ratings that include four strong buy, 17 buy, two hold, and one sell recommendations.
Director Sales Reflect Broader Trend
Carolan’s liquidation is part of a broader pattern of insider activity at Chime Financial. Director James Feuille recently sold 258,398 shares for approximately $8.5 million, reducing one of his holdings by 88.25%. Feuille also disposed of an additional 93,492 shares for about $3.1 million. These substantial sales by directors occurred alongside rising stock prices and increased trading volume, suggesting that insiders are taking advantage of the current market valuation to reduce their exposure to the company’s equity.
