Chime Financial (NASDAQ:CHYM) Shares Down 6.6% on Insider Selling

Chime Financial, Inc. (NASDAQ:CHYM)’s stock price dropped 6.6% during trading on Tuesday following insider selling activity. The stock traded as low as $25.96 and last traded at $26.09. Approximately 873,056 shares changed hands during mid-day trading, a decline of 70% from the average daily volume of 2,940,978 shares. The stock had previously closed at $27.93.

Specifically, CFO Matthew S. Newcomb sold 10,000 shares of the stock in a transaction on Friday, January 9th. The stock was sold at an average price of $28.01, for a total value of $280,100.00. Following the sale, the chief financial officer directly owned 2,240,798 shares of the company’s stock, valued at approximately $62,764,751.98. This represents a 0.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Christopher R. Britt sold 50,000 shares of Chime Financial stock in a transaction dated Friday, January 9th. The stock was sold at an average price of $28.06, for a total value of $1,403,000.00. The SEC filing for this sale provides additional information. In related news, General Counsel Adam B. Frankel sold 4,382 shares of the stock in a transaction dated Thursday, January 8th. The shares were sold at an average price of $27.29, for a total transaction of $119,584.78. Following the sale, the general counsel directly owned 209,500 shares of the company’s stock, valued at approximately $5,717,255. This represents a 2.05% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.

Analysts Set New Price Targets

Several research analysts have issued reports on the stock. The Goldman Sachs Group lifted their target price on shares of Chime Financial from $27.00 to $30.00 and gave the stock a “buy” rating in a report on Tuesday, January 6th. Canaccord Genuity Group reissued a “buy” rating and set a $40.00 price target on shares of Chime Financial in a research report on Thursday, October 30th. Williams Trading set a $17.00 price objective on shares of Chime Financial in a report on Monday, November 3rd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Chime Financial in a research report on Wednesday, October 8th. Finally, B. Riley initiated coverage on Chime Financial in a research note on Thursday, December 11th. They set a “buy” rating and a $35.00 target price on the stock. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Chime Financial presently has an average rating of “Moderate Buy” and a consensus price target of $32.44.

Chime Financial Price Performance

The stock’s 50-day moving average is $23.76 and its two-hundred day moving average is $25.08. The company has a market cap of $9.68 billion and a P/E ratio of -3.47.

Chime Financial (NASDAQ:CHYM) last announced its earnings results on Wednesday, November 5th. The company reported ($0.15) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.25) by $0.10. The company had revenue of $543.52 million for the quarter. The company’s revenue was up 28.8% on a year-over-year basis. During the same period in the previous year, the company posted ($0.34) EPS.

Institutional Trading of Chime Financial

Hedge funds have recently bought and sold shares of the company. EverSource Wealth Advisors LLC bought a new position in Chime Financial in the second quarter valued at about $33,000. Scopus Asset Management L.P. purchased a new stake in shares of Chime Financial during the 2nd quarter valued at about $34,000. Daiwa Securities Group Inc. bought a new position in shares of Chime Financial in the 2nd quarter worth approximately $40,000. Osaic Holdings Inc. bought a new position in shares of Chime Financial in the 2nd quarter worth approximately $45,000. Finally, Farther Finance Advisors LLC purchased a new position in shares of Chime Financial in the third quarter worth approximately $50,000.

Chime Financial Company Profile

Chime Financial is a U.S.-based financial technology company offering mobile-first banking services designed to reduce fees and simplify everyday transactions. Founded in 2013 and headquartered in San Francisco, Chime operates a digital bank platform that provides customers with a checking account, a savings account, and a debit card without monthly maintenance fees, overdraft charges, or foreign transaction fees. The company’s platform is accessible via its mobile app, enabling users to manage their finances, track spending, and access customer support from their smartphones.

At the core of Chime’s service offering is its fee-free spending account, which includes early access to direct deposit funds—up to two days before scheduled payday—and instant transaction alerts.