Braze (NASDAQ:BRZE) Downgraded by Mizuho to “Hold”

Braze (NASDAQ:BRZE) was downgraded by equities research analysts at Mizuho from a “strong-buy” rating to a “hold” rating in a research note issued on Wednesday, Zacks reports.

A number of other analysts also recently weighed in on the stock. Needham & Company LLC downgraded shares of Braze from a “buy” rating to a “hold” rating in a report on Tuesday. TD Cowen cut shares of Braze from a “buy” rating to a “hold” rating and lifted their price objective for the company from $36.00 to $47.50 in a research note on Tuesday. DA Davidson downgraded shares of Braze from a “buy” rating to a “hold” rating and boosted their price objective for the company from $40.00 to $47.50 in a research report on Wednesday. Cantor Fitzgerald downgraded shares of Braze from an “overweight” rating to a “hold” rating and set a $47.50 price objective for the company. in a research report on Tuesday. Finally, Citigroup cut Braze from a “buy” rating to a “neutral” rating and cut their target price for the stock from $48.00 to $47.50 in a research note on Wednesday. Five investment analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $43.95.

Braze Stock Performance

NASDAQ BRZE opened at $45.86 on Wednesday. The firm has a 50-day moving average of $29.30 and a 200-day moving average of $25.39. The company has a debt-to-equity ratio of 0.02, a quick ratio of 1.27 and a current ratio of 1.27. The stock has a market cap of $5.21 billion, a PE ratio of -44.52 and a beta of 0.91. Braze has a 52-week low of $15.26 and a 52-week high of $45.95.

Braze (NASDAQ:BRZE) last announced its earnings results 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 business had revenue of $227.23 million during the quarter, compared to the consensus estimate of $220.27 million. During the same quarter in the previous year, the firm posted $0.15 EPS. Braze’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 anticipate that Braze will post -0.70 EPS for the current year.

Insider Activity

In other Braze news, CRO Edward M. Mcdonnell sold 29,732 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $31.38, for a total value of $932,990.16. Following the transaction, the executive directly owned 409,630 shares of the company’s stock, valued at approximately $12,854,189.40. The trade was a 6.77% decrease in their ownership of the stock. The sale was disclosed in a 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, insider Astha Malik sold 15,724 shares of the stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $29.57, for a total transaction of $464,958.68. Following the transaction, the insider directly owned 326,233 shares in the company, valued at $9,646,709.81. This trade represents a 4.60% 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. Over the last quarter, insiders sold 498,568 shares of company stock valued at $19,315,911. Company insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Braze

A number of hedge funds have recently added to or reduced their stakes in BRZE. The Manufacturers Life Insurance Company increased its holdings in Braze by 30.4% during the 1st quarter. The Manufacturers Life Insurance Company now owns 1,885,577 shares of the company’s stock worth $44,518,000 after purchasing an additional 439,513 shares in the last quarter. Stephens Investment Management Group LLC lifted its holdings in shares of Braze by 11.2% in the first quarter. Stephens Investment Management Group LLC now owns 1,370,986 shares of the company’s stock valued at $32,369,000 after purchasing an additional 137,843 shares in the last quarter. Dimensional Fund Advisors LP purchased a new position in shares of Braze during the first quarter valued at approximately $14,294,000. Glenmede Trust Co. NA boosted its position in shares of Braze by 36.5% during the first quarter. Glenmede Trust Co. NA now owns 538,845 shares of the company’s stock valued at $12,722,000 after buying an additional 144,176 shares during the last quarter. Finally, Bank of New York Mellon Corp boosted its position in shares of Braze by 24.0% during the first quarter. Bank of New York Mellon Corp now owns 530,231 shares of the company’s stock valued at $12,519,000 after buying an additional 102,571 shares during the last quarter. Institutional investors and hedge funds own 90.47% of the company’s stock.

More Braze News

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.

Braze Company Profile

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.