Braze (NASDAQ:BRZE) Shares Gap Down – Time to Sell?

Braze, Inc. (NASDAQ:BRZE) shares gapped down prior to trading on Wednesday . The stock had previously closed at $30.31, but opened at $26.18. Braze shares last traded at $24.9950, with a volume of 2,010,081 shares traded.

Key Headlines Impacting Braze

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Braze reported fiscal Q2 revenue of $227.2 million, up 26.2% year over year and above the $220.3 million analyst consensus. Adjusted EPS of $0.19 also exceeded expectations of $0.16. Braze Reports Strong Fiscal Second Quarter 2027 Results
• Positive Sentiment: The customer-engagement software company raised fiscal 2027 revenue guidance to $910 million–$913 million, versus the $898.4 million consensus, and lifted EPS guidance to $0.64–$0.65 from expectations of $0.35. Management highlighted AI product adoption, enterprise expansion, improving operating leverage and record second-quarter free cash flow. Braze Growth and Guidance Analysis
• Positive Sentiment: Several analysts remained bullish. Stephens raised its price target to $34, Piper Sandler increased its target to $30, and BTIG Research and Citizens JMP maintained positive ratings with $35 targets.
• Neutral Sentiment: For fiscal Q3, Braze projected revenue of $229 million–$230 million and EPS of $0.13–$0.14, both above consensus estimates. However, investors viewed the profit outlook as weaker than anticipated relative to the company’s growth profile.
• Negative Sentiment: The raised full-year outlook and second-quarter earnings beat were overshadowed by concerns about slowing near-term profit growth. This prompted investors to reassess valuation and drove the sharp decline in BRZE despite continued revenue growth and favorable analyst commentary. Braze Stock Plummets After Disappointing Profit Outlook

Analysts Set New Price Targets

A number of brokerages recently issued reports on BRZE. Citigroup reiterated a “market outperform” rating on shares of Braze in a research note on Wednesday. JPMorgan Chase & Co. upped their target price on shares of Braze from $33.00 to $35.00 and gave the stock an “overweight” rating in a research note on Monday, July 6th. The Goldman Sachs Group set a $34.00 price target on shares of Braze and gave the company a “buy” rating in a research report on Wednesday, June 24th. Weiss Ratings restated a “sell (e+)” rating on shares of Braze in a report on Tuesday, July 7th. Finally, DA Davidson upped their price objective on Braze from $33.00 to $40.00 and gave the company a “buy” rating in a research report on Wednesday, September 2nd. One investment analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $37.79.

Braze Price Performance

The firm has a 50-day moving average of $27.57 and a 200-day moving average of $23.54. The stock has a market cap of $2.78 billion, a PE ratio of -21.95 and a beta of 0.88.

Braze (NASDAQ:BRZE) last issued its earnings results on Tuesday, September 8th. The company reported $0.19 earnings per share for the quarter, topping analysts’ consensus estimates of $0.16 by $0.03. The firm had revenue of $227.23 million during the quarter, compared to analyst estimates of $220.27 million. Braze had a negative net margin of 15.51% and a negative return on equity of 17.52%. Braze’s revenue for the quarter was up 26.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.15 earnings per share. Braze has set its FY 2027 guidance at 0.640-0.650 EPS and its Q3 2027 guidance at 0.130-0.140 EPS. Equities analysts forecast 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 Braze 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 sale, the executive owned 409,630 shares of the company’s stock, valued at $12,854,189.40. The trade was a 6.77% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available 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 the company’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $32.47, for a total value of $1,363,740.00. Following the sale, the chief technology officer directly owned 1,143,219 shares in the company, valued at $37,120,320.93. This trade represents a 3.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 203,568 shares of company stock valued at $6,096,461. Insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Braze

Several large investors have recently modified their holdings of BRZE. Integrated Wealth Concepts LLC purchased a new position in shares of Braze during the second quarter valued at approximately $50,000. Squarepoint Ops LLC raised its holdings in shares of Braze by 13.3% in the second quarter. Squarepoint Ops LLC now owns 391,337 shares of the company’s stock worth $8,488,000 after buying an additional 46,049 shares during the period. Corient Private Wealth LP raised its holdings in shares of Braze by 5.5% in the second quarter. Corient Private Wealth LP now owns 102,896 shares of the company’s stock worth $2,232,000 after buying an additional 5,360 shares during the period. Absolute Gestao de Investimentos Ltda. bought a new stake in shares of Braze during the 2nd quarter worth approximately $325,000. Finally, California State Teachers Retirement System lifted its stake in shares of Braze by 1,832.1% during the 2nd quarter. California State Teachers Retirement System now owns 2,019,361 shares of the company’s stock worth $43,800,000 after acquiring an additional 1,914,845 shares during the last quarter. Institutional investors own 90.47% of the company’s stock.

About Braze

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.