Chime Financial (NASDAQ:CHYM) Shares Gap Up After Better-Than-Expected Earnings

Chime Financial, Inc. (NASDAQ:CHYM)’s share price gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $21.11, but opened at $22.75. Chime Financial shares last traded at $24.38, with a volume of 1,844,678 shares trading hands.

The company reported ($0.12) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.20) by $0.08. The firm had revenue of $596.36 million during the quarter. The company’s revenue was up 25.5% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.30) earnings per share.

Analysts Set New Price Targets

A number of research firms have commented on CHYM. B. Riley Financial began coverage on Chime Financial in a research note on Thursday, December 11th. They issued a “buy” rating and a $35.00 price target for the company. Canaccord Genuity Group restated a “buy” rating and set a $40.00 price objective on shares of Chime Financial in a report on Thursday, October 30th. Wall Street Zen upgraded shares of Chime Financial from a “sell” rating to a “hold” rating in a research note on Sunday, February 15th. JPMorgan Chase & Co. dropped their target price on shares of Chime Financial from $40.00 to $34.00 and set an “overweight” rating on the stock in a research report on Thursday, November 6th. Finally, Jefferies Financial Group started coverage on shares of Chime Financial in a research note on Monday, November 3rd. They set a “hold” rating and a $17.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $32.24.

Insider Transactions at Chime Financial

In related news, Director James Feuille sold 7,229 shares of the company’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $24.82, for a total value of $179,423.78. Following the sale, the director owned 7,037,707 shares in the company, valued at $174,675,887.74. This represents a 0.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Christopher R. Britt sold 50,000 shares of the stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $28.06, for a total transaction of $1,403,000.00. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 256,539 shares of company stock worth $6,973,943.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in CHYM. Geode Capital Management LLC acquired a new position in shares of Chime Financial in the 2nd quarter valued at $9,519,000. Norges Bank purchased a new position in Chime Financial in the second quarter valued at $24,157,000. Federated Hermes Inc. increased its holdings in Chime Financial by 11.1% in the third quarter. Federated Hermes Inc. now owns 863,700 shares of the company’s stock valued at $17,421,000 after buying an additional 86,593 shares in the last quarter. U.S. Capital Wealth Advisors LLC raised its position 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 acquiring an additional 75,200 shares during the period. Finally, Seven Grand Managers LLC purchased a new stake in shares of Chime Financial during the 2nd quarter worth about $3,451,000.

Chime Financial Stock Performance

The firm has a market capitalization of $9.08 billion and a PE ratio of -3.26. The firm’s 50 day moving average price is $24.46 and its 200-day moving average price is $23.10.

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.