Key Points
- Insider sale: Chime director Ryan King sold 42,421 shares for approximately $1.49 million at an average price of $35.15. The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan.
- Strategic acquisition and outlook: Chime agreed to acquire Stride Bank for about $590 million, a deal expected to generate more than $100 million in annual savings and be earnings-accretive after its anticipated first-half 2027 closing. Management also raised its 2026 revenue and adjusted EBITDA guidance.
- Shares and analyst view: CHYM has rallied roughly 86% over three months and trades near its 52-week high, prompting valuation concerns despite a “Moderate Buy” consensus rating and $35 average analyst price target.
Chime Financial, Inc. (NASDAQ:CHYM - Get Free Report) insider Ryan King sold 42,421 shares of the firm's stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $35.15, for a total transaction of $1,491,098.15. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Chime Financial Price Performance
NASDAQ:CHYM opened at $32.67 on Friday. The firm has a 50 day simple moving average of $27.49 and a 200-day simple moving average of $22.43. The firm has a market cap of $12.37 billion, a PE ratio of -466.65 and a beta of 0.60. Chime Financial, Inc. has a 1-year low of $15.88 and a 1-year high of $35.55.
Chime Financial (NASDAQ:CHYM - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $0.07 EPS for the quarter, topping the consensus estimate of ($0.01) by $0.08. The firm had revenue of $669.77 million during the quarter. Chime Financial had a negative net margin of 0.74% and a negative return on equity of 1.28%. The firm's revenue was up 26.8% on a year-over-year basis. During the same period in the previous year, the firm posted ($7.29) earnings per share. As a group, sell-side analysts expect that Chime Financial, Inc. will post 0.44 earnings per share for the current fiscal year.
Analyst Ratings Changes
A number of equities research analysts have recently commented on CHYM shares. Loop Capital initiated coverage on Chime Financial in a research report on Wednesday. They issued a "buy" rating and a $45.00 price objective for the company. Wells Fargo & Company increased their target price on Chime Financial from $33.00 to $39.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 25th. UBS Group raised their price target on Chime Financial from $28.00 to $31.00 and gave the stock a "neutral" rating in a research note on Wednesday. BMO Capital Markets lifted their price target on Chime Financial from $28.00 to $32.00 and gave the company an "outperform" rating in a report on Thursday, August 6th. Finally, Keefe, Bruyette & Woods upped their price objective on shares of Chime Financial from $30.00 to $35.00 and gave the company an "outperform" rating in a research note on Thursday, August 6th. Four research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $35.00.
Read Our Latest Report on CHYM
Key Headlines Impacting Chime Financial
Here are the key news stories impacting Chime Financial this week:
- Positive Sentiment: Chime agreed to acquire Stride Bank for approximately $590 million in cash. Bringing its longtime banking partner in-house could eliminate partner fees, lower funding costs, improve control over compliance and lending, and generate more than $100 million in annual savings. The transaction is expected to be immediately accretive to earnings after its anticipated first-half 2027 closing. Chime acquisition announcement
- Positive Sentiment: Management raised its outlook to approximately $705 million of third-quarter 2026 revenue and $117 million-$120 million of adjusted EBITDA. Full-year revenue guidance increased to $2.76 billion-$2.77 billion, while adjusted EBITDA guidance rose to $481 million-$489 million. Chime guidance report
- Positive Sentiment: Analyst sentiment improved following the deal. Canaccord raised its target to $50, Loop Capital initiated coverage with a Buy rating and $45 target, and Barclays, KeyCorp, Morgan Stanley, Piper Sandler and Scotiabank also raised their targets.
- Neutral Sentiment: The acquisition remains subject to review by the Office of the Comptroller of the Currency and the Federal Reserve. Investors will watch approval timing, integration costs and whether Chime can keep the bank below the $10 billion asset threshold to preserve favorable debit-card interchange economics.
- Neutral Sentiment: Reported short interest was zero shares, offering no meaningful evidence of bearish positioning. The figure may reflect incomplete or anomalous data rather than a substantive change in investor sentiment.
- Negative Sentiment: Valuation has become a concern after an approximately 86% three-month rally and a move near the stock’s 52-week high. UBS raised its target to $31 but retained a Neutral rating, below the referenced trading level, suggesting limited upside at the current valuation.
- Negative Sentiment: Insiders reported additional selling. Director Ryan King sold 42,421 shares for about $1.49 million, while Chief Accounting Officer Amine Asmerom sold 19,505 shares worth approximately $642,000. Both transactions were executed under pre-arranged Rule 10b5-1 plans, reducing their value as discretionary bearish signals, but they may still encourage profit-taking.
Institutional Trading of Chime Financial
A number of institutional investors and hedge funds have recently made changes to their positions in CHYM. EverSource Wealth Advisors LLC purchased a new position in shares of Chime Financial in the 2nd quarter worth $33,000. Scopus Asset Management L.P. purchased a new stake in Chime Financial during the second quarter valued at about $34,000. PNC Financial Services Group Inc. purchased a new stake in Chime Financial during the fourth quarter valued at about $25,000. Daiwa Securities Group Inc. acquired a new stake in Chime Financial during the second quarter worth about $40,000. Finally, Osaic Holdings Inc. acquired a new stake in Chime Financial during the second quarter worth about $45,000.
Chime Financial Company Profile
(
Get Free Report)
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.
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