Braze (NASDAQ:BRZE) Shares Gap Down – Here’s What Happened

Braze, Inc. (NASDAQ:BRZE)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $24.58, but opened at $22.63. Braze shares last traded at $23.4240, with a volume of 2,003,616 shares trading hands.

Braze News Roundup

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Braze reported Q1 EPS of $0.10, in line with estimates, while revenue of $211.0 million beat consensus and rose 30.2% year over year. The company also said organic revenue growth accelerated for a fourth straight quarter, supported by demand for its AI-powered customer engagement platform. Article Title
• Positive Sentiment: Braze raised its FY2027 revenue outlook to $895 million-$899 million and guided Q2 EPS and revenue above Wall Street expectations, which signals management confidence in continued growth and improving execution. Article Title
• Neutral Sentiment: Piper Sandler reaffirmed its Overweight rating and set a $27 price target, suggesting modest upside from recent levels and reinforcing a constructive longer-term view. Article Title
• Neutral Sentiment: Short interest data showed no meaningful change, with reported short interest at 0 shares, so there is no evidence that bearish positioning is driving the move. Article Title
• Negative Sentiment: Despite solid results, the stock sold off after earnings, indicating investors may be disappointed by guidance relative to expectations, concerned about profitability, or taking profits after a strong run. Article Title

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. BTIG Research restated a “buy” rating and issued a $30.00 price objective on shares of Braze in a research note on Tuesday. Mizuho decreased their price objective on shares of Braze from $40.00 to $32.00 and set an “outperform” rating for the company in a research note on Thursday. Canaccord Genuity Group set a $35.00 price objective on shares of Braze in a research note on Thursday. Oppenheimer decreased their price objective on shares of Braze from $40.00 to $30.00 and set an “outperform” rating for the company in a research note on Wednesday, March 25th. Finally, Cantor Fitzgerald restated an “overweight” rating and issued a $38.00 price objective on shares of Braze in a research note on Thursday. Twenty-two equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $36.05.

Braze Price Performance

The firm has a market cap of $2.59 billion, a price-to-earnings ratio of -18.49 and a beta of 0.78. The firm’s 50 day moving average price is $22.02 and its two-hundred day moving average price is $24.54.

Braze (NASDAQ:BRZE) last announced its earnings results on Wednesday, May 27th. The company reported $0.10 earnings per share for the quarter, hitting the consensus estimate of $0.10. Braze had a negative net margin of 17.78% and a negative return on equity of 18.75%. The business had revenue of $211.00 million during the quarter, compared to the consensus estimate of $205.19 million. During the same quarter in the prior year, the firm earned $0.07 earnings per share. The business’s quarterly revenue was up 30.2% compared to the same quarter last year. Braze has set its Q2 2027 guidance at 0.150-0.160 EPS. On average, analysts anticipate that Braze, Inc. will post -0.87 earnings per share for the current year.

Insider Buying and Selling at Braze

In other news, General Counsel Susan Wiseman sold 35,000 shares of the stock in a transaction dated Thursday, April 9th. The shares were sold at an average price of $20.29, for a total transaction of $710,150.00. Following the completion of the sale, the general counsel owned 209,424 shares in the company, valued at approximately $4,249,212.96. This represents a 14.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Braze

Several hedge funds have recently made changes to their positions in the business. Arizona State Retirement System lifted its position in Braze by 1.7% in the third quarter. Arizona State Retirement System now owns 21,749 shares of the company’s stock valued at $619,000 after purchasing an additional 363 shares during the period. SBI Securities Co. Ltd. lifted its position in Braze by 34.3% in the third quarter. SBI Securities Co. Ltd. now owns 1,843 shares of the company’s stock valued at $52,000 after purchasing an additional 471 shares during the period. Clearstead Advisors LLC lifted its position in Braze by 58.2% in the third quarter. Clearstead Advisors LLC now owns 1,685 shares of the company’s stock valued at $48,000 after purchasing an additional 620 shares during the period. Rhumbline Advisers lifted its position in Braze by 0.6% in the third quarter. Rhumbline Advisers now owns 112,638 shares of the company’s stock valued at $3,203,000 after purchasing an additional 638 shares during the period. Finally, Envestnet Asset Management Inc. lifted its position in Braze by 7.2% in the third quarter. Envestnet Asset Management Inc. now owns 11,080 shares of the company’s stock valued at $315,000 after purchasing an additional 746 shares during the period. Institutional investors and hedge funds own 90.47% of the company’s stock.

About Braze

Braze, Inc is a publicly traded software company (NASDAQ: BRZE) that offers a customer engagement platform designed to help brands build personalized relationships with their users. Founded in 2011 as Appboy by Bill Magnuson, Jon Hyman and Mark Ghermezian, the company adopted the Braze name in 2017 to underscore its focus on fostering strong connections between businesses and consumers. Its cloud-based platform consolidates messaging channels including push notifications, in-app messages, email and SMS, enabling companies to deliver timely, context-driven communications at scale.

The core functionality of Braze’s platform centers on data-driven segmentation, customer journey orchestration and real-time analytics.