Chime Financial (NASDAQ:CHYM) Trading Down 5.2% on Insider Selling

Chime Financial, Inc. (NASDAQ:CHYM)’s stock price fell 5.2% on Wednesday after an insider sold shares in the company. The company traded as low as $32.08 and last traded at $31.86. Approximately 2,155,342 shares traded hands during mid-day trading, a decline of 60% from the average session volume of 5,419,634 shares. The stock had previously closed at $33.61.

Specifically, major shareholder Global Advisors Ltd Dst sold 207,513 shares of Chime Financial stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $33.07, for a total transaction of $6,862,454.91. Following the completion of the transaction, the insider directly owned 366,872 shares in the company, valued at $12,132,457.04. This trade represents a 36.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Shawn Carolan sold 302,306 shares of the business’s stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $33.21, for a total transaction of $10,039,582.26. Following the completion of the transaction, the director directly owned 1,800 shares in the company, valued at $59,778. This trade represents a 99.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In related news, Director Shawn Carolan sold 277,007 shares of the business’s stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $33.05, for a total value of $9,155,081.35. The sale was disclosed in a legal filing with the SEC, which is available through this link.

Analysts Set New Price Targets

Several analysts have recently weighed in on CHYM shares. Barclays raised their price objective on shares of Chime Financial from $33.00 to $40.00 and gave the company an “overweight” rating in a research report on Wednesday, September 9th. KeyCorp boosted their price target on Chime Financial from $33.00 to $40.00 and gave the company an “overweight” rating in a report on Wednesday, September 9th. Canaccord Genuity Group boosted their target price on shares of Chime Financial from $45.00 to $50.00 and gave the stock a “buy” rating in a report on Wednesday, September 9th. UBS Group increased their price objective on shares of Chime Financial from $28.00 to $31.00 and gave the company a “neutral” rating in a research report on Wednesday, September 9th. Finally, Rothschild & Co Redburn raised shares of Chime Financial from a “hold” rating to a “buy” rating and set a $46.00 price objective on the stock in a research report on Monday. Four investment analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and an average target price of $36.40.

Key Headlines Impacting Chime Financial

Here are the key news stories impacting Chime Financial this week:

• Positive Sentiment: Analysts raised targets and ratings: B. Riley increased its price target from $37 to $44 and maintained a “Buy” rating. Rothschild & Co. Redburn upgraded Chime to “Buy” and set a $46 target. Goldman Sachs also raised its target from $33 to $37 and assigned a “Buy” rating. The reported consensus target rose 10.98% to $38.71. B. Riley price target article Redburn upgrade article
• Positive Sentiment: Recent operating results remain supportive: Chime’s latest quarterly revenue increased 26.8% year over year to $669.77 million, while adjusted earnings of $0.07 per share exceeded the consensus estimate of a $0.01 loss. Analysts expect approximately $0.43 in earnings per share for the current year.
• Neutral Sentiment: Shares remain near their annual high: Chime is trading well above its 50-day and 200-day moving averages and near its 52-week high of $35.55. This reflects strong recent momentum but may also increase volatility and the risk of profit-taking.
• Negative Sentiment: Heavy insider selling is a near-term headwind: Major shareholder Global Advisors Ltd. Dst sold 207,513 shares for approximately $6.9 million, reducing its position by 36.13%. The transaction follows several earlier large sales by the shareholder. Directors also sold substantial amounts: Shawn Carolan sold 579,313 shares, James Feuille sold more than 350,000 shares across reported transactions, and Cynthia Marshall sold 20,000 shares. The scale and concentration of these disposals may weigh on investor sentiment, even though insider sales can reflect diversification or planned transactions. Chime insider selling report

Chime Financial Stock Down 4.9%

The stock has a market cap of $12.10 billion, a price-to-earnings ratio of -455.59 and a beta of 0.60. The company’s fifty day moving average is $28.23 and its two-hundred day moving average is $22.71.

Chime Financial (NASDAQ:CHYM) last posted its earnings results on Wednesday, August 5th. The company reported $0.07 EPS for the quarter, beating analysts’ consensus estimates of ($0.01) by $0.08. The firm had revenue of $669.77 million for the quarter. Chime Financial had a negative net margin of 0.74% and a negative return on equity of 1.28%. The company’s quarterly revenue was up 26.8% on a year-over-year basis. During the same period last year, the business earned ($7.29) earnings per share. Sell-side analysts predict that Chime Financial, Inc. will post 0.43 EPS for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Arrowstreet Capital Limited Partnership lifted its stake in Chime Financial by 2,720.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,756,555 shares of the company’s stock worth $51,630,000 after purchasing an additional 2,658,816 shares during the last quarter. Ieq Capital LLC bought a new stake in Chime Financial during the fourth quarter valued at $58,214,000. Spyglass Capital Management LLC raised its holdings in shares of Chime Financial by 162.6% during the second quarter. Spyglass Capital Management LLC now owns 3,406,249 shares of the company’s stock worth $69,760,000 after purchasing an additional 2,109,057 shares during the period. Owls Nest Partners IA LLC acquired a new stake in shares of Chime Financial during the fourth quarter worth $47,065,000. Finally, Atreides Management LP bought a new position in shares of Chime Financial in the 4th quarter worth about $37,850,000.

Chime Financial Company Profile

Chime Financial, Inc is a financial technology company that operates a digital banking platform in the United States. Chime provides consumer-focused banking services through its mobile application and website, offering checking and savings accounts, debit cards, direct-deposit services and tools designed to help customers manage their everyday finances. Chime is not a traditional bank; its banking services are provided through partner financial institutions.

The company’s products include a Visa debit card, fee-free overdraft protection through SpotMe for eligible members, early access to qualifying direct deposits, savings features and credit-building products.