Braze (NASDAQ:BRZE) Stock Rating Lowered by Canaccord Genuity Group

Braze (NASDAQ:BRZE) was downgraded by investment analysts at Canaccord Genuity Group from a “strong-buy” rating to a “hold” rating in a report released on Tuesday, Zacks reports.

Several other research analysts also recently commented on BRZE. DA Davidson downgraded shares of Braze from a “buy” rating to a “hold” rating and raised their price target for the stock from $40.00 to $47.50 in a research note on Wednesday. Cantor Fitzgerald cut shares of Braze from an “overweight” rating to a “hold” rating and set a $47.50 price objective for the company. in a research report on Tuesday. Stephens downgraded shares of Braze from an “overweight” rating to a “buy” rating and upped their target price for the stock from $34.00 to $47.50 in a research note on Wednesday. UBS Group lowered shares of Braze from a “buy” rating to a “hold” rating and set a $47.50 target price on the stock. in a research report on Tuesday. Finally, Piper Sandler downgraded shares of Braze from an “overweight” rating to a “neutral” rating and lifted their price target for the company from $30.00 to $47.50 in a research note on Tuesday. Five equities research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $43.95.

Braze Stock Performance

BRZE stock opened at $45.86 on Tuesday. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 0.02. The business’s fifty day simple moving average is $29.30 and its two-hundred day simple moving average is $25.39. Braze has a twelve month low of $15.26 and a twelve month high of $45.95. The firm has a market cap of $5.21 billion, a price-to-earnings ratio of -44.52 and a beta of 0.91.

Braze (NASDAQ:BRZE) last issued its earnings results on Tuesday, September 8th. The company reported $0.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.16 by $0.03. The firm had revenue of $227.23 million during the quarter, compared to analyst estimates of $220.27 million. Braze had a negative net margin of 13.55% and a negative return on equity of 16.11%. The business’s revenue was up 26.2% on a year-over-year basis. During the same period in the previous year, the firm earned $0.15 earnings per share. Braze has set its FY 2027 guidance at 0.640-0.650 EPS and its Q3 2027 guidance at 0.130-0.140 EPS. Analysts predict that Braze will post -0.70 earnings per share for the current year.

Insider Activity

In related news, CTO Jonathan Hyman sold 285,000 shares of the company’s stock in a transaction dated Tuesday, October 20th. The shares were sold at an average price of $45.33, for a total value of $12,919,050.00. Following the completion of the sale, the chief technology officer directly owned 848,219 shares of the company’s stock, valued at $38,449,767.27. This represents a 25.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Astha Malik sold 33,656 shares of the stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $27.65, for a total transaction of $930,588.40. Following the transaction, the insider owned 278,138 shares in the company, valued at approximately $7,690,515.70. The trade was a 10.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 498,568 shares of company stock worth $19,315,911. Company insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Braze

Several large investors have recently modified their holdings of the business. Dimensional Fund Advisors LP purchased a new stake in shares of Braze in the 1st quarter worth approximately $14,294,000. Squarepoint Ops LLC increased its holdings in Braze by 13.3% during the second quarter. Squarepoint Ops LLC now owns 391,337 shares of the company’s stock valued at $8,488,000 after buying an additional 46,049 shares during the period. Quantinno Capital Management LP increased its holdings in Braze by 1,057.5% during the first quarter. Quantinno Capital Management LP now owns 199,292 shares of the company’s stock valued at $4,705,000 after buying an additional 182,074 shares during the period. First Trust Advisors LP increased its holdings in Braze by 252.9% during the first quarter. First Trust Advisors LP now owns 167,498 shares of the company’s stock valued at $3,955,000 after buying an additional 120,033 shares during the period. Finally, Bank of New York Mellon Corp bought a new position in Braze in the second quarter worth approximately $11,814,000. Institutional investors own 90.47% of the company’s stock.

More Braze News

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Salesforce’s proposed acquisition values Braze at approximately $5.66 billion and offers shareholders $47.50 per share, representing roughly a 58% premium to Braze’s pre-announcement price. The transaction gives investors a defined cash exit and supports the stock’s move toward the offer price. Salesforce Fuels AI Engine With $5.66B Braze Buyout
• Positive Sentiment: UBS described the acquisition as a strategic fit at a reasonable price, noting that Braze would add a faster-growing marketing-technology platform to Salesforce’s portfolio and strengthen its real-time data and AI offerings. Salesforce’s Braze deal wins UBS backing
• Positive Sentiment: Trading activity also reflects bullish sentiment: investors purchased a high volume of Braze call options, while a separate analysis argued that the stock could remain undervalued despite its approximately 80% run. Stock Traders Buy High Volume of Braze Call Options
• Neutral Sentiment: DA Davidson lowered its rating from Buy to Hold, and Citigroup cut its rating from Buy to Neutral. However, both firms set price targets of $47.50, leaving limited upside but broadly aligning with Salesforce’s offer.
• Neutral Sentiment: The deal remains subject to shareholder approval and antitrust review, with completion expected in Salesforce’s fiscal 2028. The current price below $47.50 reflects some uncertainty about closing and timing.
• Negative Sentiment: Several law firms are investigating whether the proposed price and sale process adequately protect Braze shareholders. These inquiries do not currently change the offer but could create legal or deal-completion risks. Braze Investor Alert
• Negative Sentiment: CTO Jonathan Hyman sold a combined 295,000 shares under a pre-arranged Rule 10b5-1 plan. Although the sales were scheduled and he retains a substantial stake, the transactions may weigh modestly on sentiment after the recent rally.

About Braze

Braze, Inc is a customer engagement software company that provides a platform for businesses to build, manage and measure personalized interactions with consumers. Its technology is designed to help brands communicate with customers across digital channels, including mobile applications, websites, email, SMS and messaging services.

The Braze platform supports customer data collection and segmentation, campaign creation, journey orchestration, experimentation and engagement analytics. Its capabilities include in-app and web messaging, push notifications, email marketing, content personalization and automated lifecycle campaigns.