Needham & Company LLC has reaffirmed its “Buy” rating on shares of Braze (NASDAQ: BRZE) in a research note published on the morning of June 5, 2023. The brokerage set a price target of $50.00 for the stock, reflecting confidence in the company’s potential for growth.
Several other financial institutions have also recently provided insights on Braze’s stock. Loop Capital reduced its price target from $75.00 to $45.00 while maintaining a “Buy” rating in a note dated June 6, 2023. In the same vein, Macquarie adjusted its target down from $40.00 to $35.00, assigning a “Neutral” rating. Conversely, Mizuho initiated coverage on Braze on July 24, 2023, with an “Outperform” rating and a price target of $40.00.
Additionally, Cantor Fitzgerald lowered its price target from $45.00 to $35.00, while giving an “Overweight” rating on August 29, 2023. JMP Securities also reiterated a “Market Outperform” rating with a price target of $68.00 as of June 6, 2023. Overall, twenty equity research analysts currently rate Braze as a Buy, while one has issued a Hold rating. According to data from MarketBeat, the consensus rating stands at “Moderate Buy” with an average price target of $44.85.
Quarterly Earnings and Stock Performance
Braze recently announced its quarterly earnings on June 5, 2023, reporting earnings per share (EPS) of $0.07, surpassing analysts’ estimates of $0.05 by $0.02. The company achieved revenue of $162.06 million, exceeding the consensus estimate of $158.60 million. Despite a negative return on equity of 19.21% and a net margin of 16.62%, Braze’s revenue indicated a strong year-over-year growth of 19.6%. This growth comes after the company reported a loss of $0.05 per share in the same quarter the previous year. Analysts estimate that Braze will post an EPS of -0.98 for the current year.
In the wake of these financial results, shares of Braze rose by 13.6%.
Insider Transactions and Institutional Holdings
In other developments, insider trading activity has been notable at Braze. On August 19, 2023, General Counsel Susan Wiseman sold 4,988 shares at an average price of $25.94, totaling approximately $129,389. Following this transaction, Wiseman retains 234,667 shares in the company, valued at around $6.09 million, reflecting a 2.08% decrease in her holdings.
Also on August 19, CAO Pankaj Malik sold 2,344 shares for a total of $60,803, resulting in a 3.38% decrease in his position, leaving him with 66,930 shares valued at approximately $1.74 million. Over the last ninety days, insiders have sold a total of 72,354 shares worth nearly $1.91 million. Currently, insiders own 18.20% of Braze’s stock.
Recent shifts in institutional holdings have also influenced Braze’s stock performance. For instance, Tower Research Capital LLC increased its position by 168.0% in the fourth quarter, acquiring an additional 405 shares. Similarly, GAMMA Investing LLC grew its holdings by 236.1% during the first quarter, now holding 736 shares. Other institutional investors, including Quarry LP and Caitong International Asset Management Co. Ltd, have also ramped up their investments.
Institutional investors and hedge funds now own approximately 90.47% of Braze’s stock, indicating strong confidence in the company’s future prospects.
Braze operates a platform that enhances customer engagement through various digital channels, providing essential tools for brands to optimize interactions with consumers globally.
