Braze (NASDAQ:BRZE) Stock Rating Cut to “Neutral” at Citigroup

Braze (NASDAQ:BRZE) was downgraded by equities research analysts at Citigroup from a “buy” rating to a “neutral” rating in a research report issued on Wednesday, MarketBeat reports. They currently have a $47.50 target price on the stock, down from their previous target price of $48.00. Citigroup‘s target price points to a potential upside of 4.24% from the company’s current price.

Other analysts have also recently issued reports about the stock. TD Cowen cut shares of Braze from a “buy” rating to a “hold” rating in a report on Tuesday. Loop Capital cut shares of Braze from a “buy” rating to a “hold” rating and set a $47.50 target price for the company. in a report on Tuesday. UBS Group cut shares of Braze from a “buy” rating to a “neutral” rating and set a $47.50 target price for the company. in a report on Tuesday. Cantor Fitzgerald cut shares of Braze from an “overweight” rating to a “neutral” rating and set a $47.50 target price for the company. in a report on Tuesday. Finally, DA Davidson restated a “neutral” rating and set a $47.50 target price (up from $40.00) on shares of Braze in a report on Tuesday. Seven equities research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Braze presently has an average rating of “Hold” and a consensus target price of $43.38.

Braze Trading Up 51.7%

Shares of NASDAQ:BRZE opened at $45.57 on Wednesday. The stock has a market capitalization of $5.18 billion, a price-to-earnings ratio of -44.24 and a beta of 0.91. Braze has a 1-year low of $15.26 and a 1-year high of $45.61. 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 company has a 50 day moving average price of $28.62 and a 200 day moving average price of $25.08.

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 analysts’ expectations of $220.27 million. Braze had a negative net margin of 13.55% and a negative return on equity of 16.11%. The firm’s revenue for the quarter was up 26.2% compared to the same quarter last year. During the same period last year, the firm posted $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. On average, research analysts anticipate that Braze will post -0.70 EPS for the current fiscal year.

Insider Activity at Braze

In related news, CRO Edward Mcdonnell sold 29,732 shares of the company’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $31.38, for a total value of $932,990.16. Following the completion of the sale, 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 legal 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 the company’s stock in a transaction that occurred on 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 owned 1,143,219 shares of the company’s stock, valued at approximately $37,120,320.93. This trade represents 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. In the last 90 days, insiders sold 203,568 shares of company stock worth $6,096,461. 12.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Braze

Hedge funds have recently made changes to their positions in the company. Dimensional Fund Advisors LP purchased a new stake in Braze in the 1st quarter worth approximately $14,294,000. Bank of New York Mellon Corp purchased a new stake in Braze in the 2nd quarter worth approximately $11,814,000. The Manufacturers Life Insurance Company lifted its position in Braze by 30.4% in the 1st quarter. The Manufacturers Life Insurance Company now owns 1,885,577 shares of the company’s stock worth $44,518,000 after buying an additional 439,513 shares in the last quarter. Wellington Management Group LLP purchased a new stake in Braze in the 2nd quarter worth approximately $7,847,000. Finally, Quantinno Capital Management LP lifted its position in Braze by 1,057.5% in the 1st quarter. Quantinno Capital Management LP now owns 199,292 shares of the company’s stock worth $4,705,000 after buying an additional 182,074 shares in the last quarter. Hedge funds and other institutional investors own 90.47% of the company’s stock.

Key Stories Impacting Braze

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Salesforce will pay $47.50 per Braze share, representing roughly a 58% premium to Braze’s prior closing price. The definitive offer provides shareholders with a clear cash exit and drove BRZE shares toward a 52-week high. Salesforce Signs Definitive Agreement to Acquire Braze
• Positive Sentiment: Salesforce said Braze’s platform will complement its CRM and artificial-intelligence offerings by helping marketers respond to customer behavior in real time. The transaction also highlights renewed strategic interest in marketing-automation software and lifted attention toward comparable companies. Salesforce announces $5.66 billion deal for Braze
• Positive Sentiment: Unusually heavy options activity preceded the announcement, with call volume reportedly more than four times its average level, reflecting elevated speculative interest. Why Braze Stock Skyrocketed Today
• Neutral Sentiment: Trading in BRZE was temporarily halted pending news before the acquisition announcement, underscoring the materiality of the event. The stock’s gains are therefore primarily deal-driven rather than a reaction to new operating results. Salesforce to acquire Braze in a $5.66 billion deal
• Negative Sentiment: Investor-rights law firms Ademi and Halper Sadeh announced investigations into whether the purchase price fairly values Braze and whether the board adequately protected shareholders. Such reviews could create deal uncertainty, although no challenge or competing bid has been announced. BRZE Shareholder Alert

About Braze

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.