Insider Selling: Chime Financial (NASDAQ:CHYM) Director Sells $10,039,582.26 in Stock

Chime Financial, Inc. (NASDAQ:CHYM) Director Shawn Carolan sold 302,306 shares of the firm’s stock in a transaction that occurred on 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 transaction, the director directly owned 1,800 shares in the company, valued at approximately $59,778. This trade represents a 99.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link.

Chime Financial Stock Performance

Shares of NASDAQ CHYM opened at $31.25 on Thursday. The firm has a market capitalization of $11.83 billion, a price-to-earnings ratio of -446.36 and a beta of 0.60. The stock has a 50 day moving average price of $28.44 and a 200 day moving average price of $22.76. Chime Financial, Inc. has a 52-week low of $15.88 and a 52-week high of $35.55.

Chime Financial (NASDAQ:CHYM) last issued its earnings results on Wednesday, August 5th. The company reported $0.07 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.01) by $0.08. Chime Financial had a negative return on equity of 1.28% and a negative net margin of 0.74%.The business had revenue of $669.77 million during the quarter. During the same period last year, the firm earned ($7.29) earnings per share. The company’s revenue for the quarter was up 26.8% on a year-over-year basis. Analysts forecast that Chime Financial, Inc. will post 0.44 earnings per share for the current year.

More Chime Financial News

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

• Positive Sentiment: Analysts remain bullish: Goldman Sachs raised its price target to $37 and maintained a “Buy” rating. B. Riley lifted its target to $44, while Rothschild & Co Redburn upgraded CHYM to “Buy” with a $46 target. These calls indicate continued confidence in Chime’s growth outlook. B. Riley raises Chime price target Rothschild upgrades Chime
• Positive Sentiment: Bank acquisition offers strategic upside: Chime agreed to acquire Central Service Corporation, the parent of Stride Bank, for $590 million in cash. Pending regulatory approvals, the transaction would allow Stride to become Chime Bank, N.A., giving Chime greater control over its banking infrastructure and potentially improving long-term economics. Chime bank acquisition analysis
• Positive Sentiment: Operating momentum remains favorable: Chime’s latest results showed revenue growth of 26.8% year over year, 10.4 million active members and a second consecutive quarter of GAAP profitability. The company also raised its full-year outlook.
• Neutral Sentiment: New York expansion: Chime opened a new office in New York, supporting its corporate and hiring footprint, although the announcement is unlikely to materially change near-term earnings expectations. Chime opens New York office
• Negative Sentiment: Heavy insider selling is a sentiment headwind: General Counsel Adam Frankel sold 102,002 shares for about $3.4 million, and Director James Feuille sold 352,237 shares worth roughly $11.6 million across two transactions. A major shareholder also sold 207,513 shares for approximately $6.9 million. Recent disclosures show numerous insider sales and no reported open-market purchases over the past six months. Some transactions were conducted under pre-arranged Rule 10b5-1 plans, but the volume may still reinforce profit-taking concerns. SEC insider sale filing
• Negative Sentiment: Acquisition risks are being reassessed: Investors are weighing regulatory approval, integration costs and capital requirements associated with the Stride transaction. After the recent run-up, these uncertainties have contributed to increased volatility and pressure on CHYM.

Institutional Trading of Chime Financial

Several hedge funds have recently modified their holdings of the company. Spyglass Capital Management LLC grew its position in shares of Chime Financial by 162.6% in the 2nd quarter. Spyglass Capital Management LLC now owns 3,406,249 shares of the company’s stock worth $69,760,000 after buying an additional 2,109,057 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its position 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 valued at $51,630,000 after acquiring an additional 2,658,816 shares during the last quarter. Ieq Capital LLC acquired a new stake in Chime Financial in the fourth quarter valued at approximately $58,214,000. Light Street Capital Management LLC grew its holdings in Chime Financial by 5.8% in the second quarter. Light Street Capital Management LLC now owns 2,199,089 shares of the company’s stock worth $45,037,000 after purchasing an additional 121,474 shares during the last quarter. Finally, Owls Nest Partners IA LLC purchased a new position in Chime Financial in the fourth quarter worth $47,065,000.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on CHYM shares. Wolfe Research upped their price objective on shares of Chime Financial from $32.00 to $38.00 and gave the stock an “outperform” rating in a research note on Tuesday, August 25th. Rothschild & Co Redburn upgraded shares of Chime Financial from a “hold” rating to a “buy” rating and set a $46.00 price target for the company in a report on Monday. Loop Capital began coverage on shares of Chime Financial in a research report on Wednesday, September 9th. They issued a “buy” rating and a $45.00 price target for the company. Wells Fargo & Company increased their price objective on shares of Chime Financial from $33.00 to $39.00 and gave the company an “overweight” rating in a research note on Tuesday, August 25th. Finally, The Goldman Sachs Group lifted their price objective on shares of Chime Financial from $33.00 to $37.00 and gave the company a “buy” rating in a report on Tuesday. Four analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Buy” and a consensus price target of $36.40.

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.