Braze Inc. (NASDAQ: BRZE) stock jumped 4.41% on Wednesday to $25.32 against a previous-day closing price of $24.25. With 0.25 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.58 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $26.01 whereas the lowest price it dropped to was $24.10. The 52-week range on BRZE shows that it touched its highest point at $85.30 and its lowest point at $22.53 during that stretch. It currently has a 1-year price target of $49.50.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BRZE was down-trending over the past week, with a drop of -3.17%, but this was down by -15.01% over a month. Three-month performance dropped to -46.38% while six-month performance fell -22.73%. The stock lost -66.74% in the past year, while it has lost -67.19% so far this year. A look at the trailing 12-month EPS for BRZE yields -1.29 with Next year EPS estimates of -0.61. For the next quarter, that number is -0.22. This implies an EPS growth rate of -134.60% for this year and 20.80% for next year.
Float and Shares Shorts:
At present, 94.10 million BRZE shares are outstanding with a float of 51.56 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.78 million, which was 3.98% higher than short shares on Sep 14, 2022. In addition to Mr. William Magnuson as the firm’s Co-Founder, Chairman & CEO, Mr. Myles Kleeger serves as its Pres & Chief Customer Officer.
Through their ownership of 73.02% of BRZE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 63.51% of BRZE, in contrast to 47.99% held by mutual funds. Shares owned by individuals account for 15.58%. As the largest shareholder in BRZE with 16.54% of the stake, Iconiq Capital LLC holds 8,669,763 shares worth 8,669,763. A second-largest stockholder of BRZE, Cadian Capital Management LP, holds 4,622,677 shares, controlling over 8.82% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in BRZE, holding 3,048,027 shares or 5.82% stake. With a 2.12% stake in BRZE, the AB Small Cap Growth Portfolio is the largest stakeholder. A total of 1,109,158 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 1.95% of BRZE stock, is the second-largest Mutual Fund holder. It holds 1,023,274 shares valued at 30.3 million. T Rowe Price New Horizons Fund holds 1.87% of the stake in BRZE, owning 978,361 shares worth 28.97 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BRZE since 13 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BRZE analysts setting a high price target of $57.00 and a low target of $38.00, the average target price over the next 12 months is $49.50. Based on these targets, BRZE could surge 125.12% to reach the target high and rise by 50.08% to reach the target low. Reaching the average price target will result in a growth of 95.5% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BRZE will report FY 2023 earnings on 03/30/2023. Analysts have provided yearly estimates in a range of -$0.76 being high and -$0.79 being low. For BRZE, this leads to a yearly average estimate of -$0.78. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Braze Inc. surprised analysts by $0.04 when it reported -$0.16 EPS against a consensus estimate of -$0.20. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is -$0.22 and the low estimate is -$0.23. The average estimate for the next quarter is thus -$0.22.
Summary of Insider Activity:
Insiders traded BRZE stock several times over the past three months with 66 Buys and 4 Sells. In these transactions, 3,191,736 shares were bought while 30,000 shares were sold. The number of buy transactions has increased to 165 while that of sell transactions has risen to 22 over the past year. The total number of shares bought during that period was 49,875,896 while 1,327,394 shares were sold.