Braze (NASDAQ:BRZE) Stock Price Down 5.9% – What’s Next?

Braze, Inc. (NASDAQ:BRZE)’s share price dropped 5.9% on Tuesday . The company traded as low as $30.24 and last traded at $30.0750. 283,013 shares were traded during mid-day trading, a decline of 90% from the average session volume of 2,906,865 shares. The stock had previously closed at $31.96.

More Braze News

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Strong Q2 results: Braze reported adjusted earnings of $0.19 per share versus the $0.16 consensus estimate, while revenue rose 26.2% year over year to $227.23 million, exceeding expectations of $220.27 million. Management also cited record second-quarter free cash flow and improving operating leverage. Braze Reports Strong Fiscal Second Quarter 2027 Results
• Positive Sentiment: Guidance was raised: Braze increased fiscal 2027 revenue guidance to $910 million-$913 million and adjusted EPS guidance to $0.64-$0.65, above analyst expectations of $898.4 million and $0.35, respectively. Third-quarter revenue and EPS guidance also exceeded consensus estimates. Braze Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Analysts remain constructive: TD Cowen reaffirmed its Buy rating, while DA Davidson maintained Buy with a $40 price target. Stephens, Piper Sandler, BTIG Research and Citizens JMP also reiterated positive ratings or raised targets, citing AI-driven product adoption, enterprise expansion and attractive valuation. TD Cowen Reaffirms Buy Rating
• Neutral Sentiment: Strategic trends are mixed: AI adoption and vendor consolidation could benefit Braze’s platform, but competitive shifts and customer budget scrutiny may affect growth and sales execution. BRZE Q2 Deep Dive
• Negative Sentiment: Profit outlook overshadowed the beat: Investors appeared concerned that expected third-quarter profit growth was softer than hoped, prompting a sharp post-earnings decline. JPMorgan lowered its price target from $35 to $34, although it retained an Overweight rating. Braze Stock Plummets After Disappointing Profit Outlook

Wall Street Analysts Forecast Growth

BRZE has been the topic of several research analyst reports. Barclays raised their target price on Braze from $31.00 to $38.00 and gave the stock an “overweight” rating in a research report on Wednesday, September 2nd. TD Cowen raised their price objective on shares of Braze from $30.00 to $36.00 and gave the stock a “buy” rating in a report on Thursday, August 27th. Citizens Jmp restated a “market outperform” rating and issued a $35.00 target price on shares of Braze in a report on Wednesday. Raymond James Financial lifted their price target on shares of Braze from $27.00 to $33.00 and gave the stock an “outperform” rating in a research note on Wednesday. Finally, Mizuho set a $52.00 price target on shares of Braze in a research report on Wednesday. Twenty research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $38.21.

Braze Stock Performance

The stock has a market cap of $2.67 billion, a PE ratio of -23.04 and a beta of 0.88. The firm’s 50-day moving average is $27.58 and its 200 day moving average is $23.58.

Braze (NASDAQ:BRZE) last announced its earnings results on Tuesday, September 8th. The company reported $0.19 EPS for the quarter, beating analysts’ consensus estimates of $0.16 by $0.03. Braze had a negative net margin of 13.55% and a negative return on equity of 16.09%. The business had revenue of $227.23 million during the quarter, compared to analysts’ expectations of $220.27 million. During the same period in the prior year, the company earned $0.15 earnings per share. The business’s revenue 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. On average, sell-side analysts predict that Braze, Inc. will post -0.78 EPS for the current fiscal year.

Insider Activity at Braze

In other Braze news, CRO Edward 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 transaction of $932,990.16. Following the completion of the transaction, the executive owned 409,630 shares in the company, valued at approximately $12,854,189.40. This represents a 6.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Jonathan Hyman sold 42,000 shares of Braze stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $32.47, for a total transaction of $1,363,740.00. Following the completion of the sale, the chief technology officer directly owned 1,143,219 shares in the company, valued at approximately $37,120,320.93. The trade was a 3.54% decrease in their position. 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 a total of 203,568 shares of company stock worth $6,096,461 in the last three months. Insiders own 12.50% of the company’s stock.

Institutional Trading of Braze

Several hedge funds have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd grew its holdings in Braze by 3,650.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 825 shares of the company’s stock worth $28,000 after acquiring an additional 803 shares during the period. Fifth Third Bancorp acquired a new position in shares of Braze during the 1st quarter worth $27,000. Kemnay Advisory Services Inc. purchased a new position in shares of Braze in the 4th quarter valued at about $52,000. Osaic Holdings Inc. lifted its stake in shares of Braze by 821.1% in the second quarter. Osaic Holdings Inc. now owns 1,575 shares of the company’s stock valued at $44,000 after purchasing an additional 1,404 shares during the period. Finally, Quarry LP purchased a new stake in Braze during the third quarter worth about $46,000. 90.47% of the stock is owned by institutional investors and hedge funds.

Braze Company Profile

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.