Piper Sandler has increased its price target for Braze (NASDAQ: BRZE) from $38.00 to $50.00, reflecting a positive outlook for the customer engagement platform. This adjustment was detailed in a research note distributed to investors on August 18, 2023. The firm currently maintains an “overweight” rating on the stock, suggesting that they expect it to perform better than the market average.
In a somewhat contrasting view, Barclays has lowered its price objective for Braze from $43.00 to $35.00, while still assigning an “overweight” rating. This adjustment followed a similar trend observed by other analysts. Raymond James Financial also reduced its price target from $48.00 to $43.00, while maintaining an “outperform” rating, as noted in their report on June 6, 2023.
JPMorgan Chase & Co. modified its target from $47.00 to $45.00, aligning with an “overweight” rating issued on the same date as Raymond James. Meanwhile, Cantor Fitzgerald set a new price target of $35.00 after reducing it from $45.00 on August 29, 2023. On a more optimistic note, JMP Securities reaffirmed a “market outperform” rating while establishing a target price of $68.00 on June 6, 2023.
A total of twenty equity research analysts have rated Braze stock with a “Buy” recommendation, while one has assigned a “Hold” rating. According to MarketBeat.com, the company holds an average rating of “Moderate Buy,” with a consensus target price of $44.85.
Recent Performance and Insider Transactions
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 recorded revenue of $162.06 million, exceeding the consensus estimate of $158.60 million. This represents a year-on-year revenue growth of 19.6%, compared to the same quarter last year, where Braze reported an EPS of ($0.05). Analysts anticipate that the company will post an EPS of -0.98 for the current fiscal year.
In terms of insider activity, General Counsel Susan Wiseman sold 4,943 shares on August 20, 2023, at an average price of $25.14, resulting in a total transaction value of approximately $124,267.02. Following this sale, Wiseman held 229,724 shares valued at about $5,775,261.36, marking a 2.11% reduction in her holdings.
Additionally, CEO William Magnuson sold 24,325 shares on August 19, 2023, at an average price of $25.94, totaling around $630,990.50. After this transaction, Magnuson retained 721,444 shares valued at approximately $18,714,257.36, representing a 3.26% decrease in his position. In total, insiders have sold 72,354 shares worth $1,914,998 over the last quarter, with insiders owning 18.20% of the company’s stock.
Institutional Investor Activity
Recent movements among institutional investors have also impacted Braze’s stock. Westfield Capital Management Co. LP acquired a new position valued at approximately $54,644,000 during the first quarter. Other substantial purchases include Fuller & Thaler Asset Management Inc. at around $50,988,000, and Wellington Management Group LLP, which invested approximately $50,000,000.
Furthermore, Nuveen LLC purchased shares worth about $35,393,000, while Norges Bank made an investment in Braze valued at approximately $24,467,000 during the second quarter. Collectively, hedge funds and institutional investors now hold 90.47% of the company’s stock.
Braze, Inc. operates a customer engagement platform that facilitates interactions between consumers and brands globally. The company provides software development kits that manage data ingestion and deliver notifications across mobile and web platforms. Through its suite of services, Braze enables brands to effectively harness customer data, enhancing user experience and engagement.
This ongoing evolution in analyst ratings and insider trading reflects the dynamic nature of Braze’s market position and the broader interest in its growth potential.