Chime Financial, Inc. (NASDAQ:CHYM) is poised for a significant shift as its lock-up period expires on December 9, 2023. This period followed the company’s initial public offering, which raised $864 million by issuing 32 million shares at a price of $27.00 per share on June 12, 2023. The expiration will allow major shareholders and company insiders the opportunity to sell their shares, potentially impacting the stock’s market performance.
Analysts have recently provided insights on Chime Financial’s stock. Notably, the Goldman Sachs Group upgraded the company’s shares from a “neutral” rating to a “buy” rating, increasing the price target from $26.00 to $27.00 in a report published on December 1, 2023. Similarly, Arete Research designated Chime Financial as a “strong-buy” in a note released on September 30, 2023. In contrast, Weiss Ratings reaffirmed a “sell (d-)” rating as of October 8, 2023. William Blair also reiterated their “outperform” rating on the same day as Arete’s upgrade. Meanwhile, Jefferies Financial Group initiated coverage with a “hold” rating and a price target of $17.00 on November 3, 2023.
Overall, Chime Financial has received mixed ratings from analysts, with two analysts issuing a Strong Buy rating, eleven giving a Buy rating, four offering a Hold rating, and one recommending a Sell. According to MarketBeat.com, the stock currently holds an average rating of “Moderate Buy” and an average target price of $32.07.
Recent Earnings Report and Institutional Interest
Chime Financial reported its earnings on November 5, 2023, revealing an earnings per share (EPS) of ($0.15), surpassing the consensus estimate of ($0.25) by $0.10. The company generated revenue of $543.52 million during the quarter, reflecting a year-over-year increase of 28.8%. This growth suggests that Chime Financial is gaining traction in the competitive financial technology sector.
Institutional investors have also shown interest in Chime Financial. Several hedge funds acquired shares during the second quarter, including EverSource Wealth Advisors LLC, which invested approximately $33,000, and Daiwa Securities Group Inc., which acquired a stake valued at about $40,000. Other notable investments include Scopus Asset Management L.P. and Osaic Holdings Inc., with respective new positions worth around $34,000 and $45,000. More recently, Farther Finance Advisors LLC entered a new position valued at about $50,000 in the third quarter.
Chime Financial operates as a financial technology company, collaborating with federally regulated, FDIC-insured banks, including The Bancorp Bank, N.A. and Stride Bank, N.A.. The company focuses on consumer banking products and services, aiming to eliminate common fees such as overdraft charges and monthly service fees, while also simplifying access to essential financial services.
As the lock-up period nears its conclusion, market participants will be closely monitoring the stock’s performance, particularly in light of the recent analyst ratings and positive earnings report.
