Braze (NASDAQ:BRZE) Stock Rating Cut to “Hold” at Canaccord Genuity Group

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

Other equities research analysts also recently issued reports about the stock. Piper Sandler downgraded shares of Braze from an “overweight” rating to a “neutral” rating and upped their target price for the stock from $30.00 to $47.50 in a research note on Tuesday. JPMorgan Chase & Co. cut their price objective on shares of Braze from $35.00 to $34.00 and set an “overweight” rating on the stock in a report on Wednesday, September 9th. Wells Fargo & Company downgraded Braze from an “overweight” rating to an “equal weight” rating and raised their price target for the stock from $45.00 to $47.50 in a research note on Tuesday. DA Davidson cut Braze from a “buy” rating to a “hold” rating and boosted their price target for the company from $40.00 to $47.50 in a research report on Wednesday. Finally, UBS Group lowered shares of Braze from a “buy” rating to a “hold” rating and set a $47.50 price target on the stock. in a research note on Tuesday. Five equities research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Braze has a consensus rating of “Hold” and a consensus target price of $43.95.

Braze Price Performance

Shares of BRZE opened at $45.86 on Tuesday. Braze has a 1-year low of $15.26 and a 1-year high of $45.95. The stock has a market cap of $5.21 billion, a PE ratio of -44.52 and a beta of 0.91. The firm has a 50-day simple moving average of $29.30 and a two-hundred day simple moving average of $25.39. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.27 and a quick ratio of 1.27.

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

Insider Activity

In related news, CTO Jonathan Hyman sold 285,000 shares of the firm’s stock in a transaction that occurred on Tuesday, October 20th. The shares were sold at an average price of $45.33, for a total transaction of $12,919,050.00. Following the sale, the chief technology officer owned 848,219 shares in the company, valued at approximately $38,449,767.27. This trade represents a 25.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Edward M. Mcdonnell sold 29,732 shares of the company’s stock in a transaction on Monday, August 24th. The shares were sold at an average price of $31.38, for a total value of $932,990.16. Following the completion of the transaction, the executive owned 409,630 shares of the company’s stock, valued at $12,854,189.40. The trade was a 6.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 498,568 shares of company stock worth $19,315,911 over the last three months. 12.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Braze

Several hedge funds and other institutional investors have recently modified their holdings of BRZE. Dimensional Fund Advisors LP purchased a new stake in Braze during the first quarter worth approximately $14,294,000. Bank of New York Mellon Corp acquired a new stake in shares of Braze in the second quarter worth $11,814,000. The Manufacturers Life Insurance Company increased its position in shares of Braze by 30.4% in the first quarter. The Manufacturers Life Insurance Company now owns 1,885,577 shares of the company’s stock worth $44,518,000 after acquiring an additional 439,513 shares in the last quarter. Wellington Management Group LLP acquired a new stake in shares of Braze in the second quarter worth $7,847,000. Finally, Quantinno Capital Management LP raised its stake in shares of Braze by 1,057.5% in the 1st quarter. Quantinno Capital Management LP now owns 199,292 shares of the company’s stock valued at $4,705,000 after acquiring an additional 182,074 shares during the period. 90.47% of the stock is owned by institutional investors and hedge funds.

Braze News Summary

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.