An analyst sees good growth prospects for Braze Inc. (BRZE)

Braze Inc. (NASDAQ: BRZE) stock fell -0.41% on Monday to $46.34 against a previous-day closing price of $46.53. With 0.6 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.92 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $47.07 whereas the lowest price it dropped to was $45.67. The 52-week range on BRZE shows that it touched its highest point at $50.13 and its lowest point at $22.53 during that stretch. It currently has a 1-year price target of $56.25. Beta for the stock currently stands at 1.04.

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 -6.55%, but this was up by 16.73% over a month. Three-month performance surged to 9.22% while six-month performance rose 48.34%. The stock gained 30.98% in the past year, while it has gained 69.87% so far this year. A look at the trailing 12-month EPS for BRZE yields -1.43 with Next year EPS estimates of -0.06. For the next quarter, that number is -0.13. This implies an EPS growth rate of -78.10% for this year and 83.80% for next year.

Float and Shares Shorts:

At present, 97.18 million BRZE shares are outstanding with a float of 62.24 million shares on hand for trading. On Aug 30, 2023, short shares totaled 5.31 million, which was 5.37% higher than short shares on Jul 30, 2023. In addition to Mr. William Magnuson as the firm’s Co-Founder, Chairman & CEO, Mr. Myles Kleeger serves as its Pres & Chief Commercial Officer.

Institutional Ownership:

Through their ownership of 68.77% of BRZE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 46.56% of BRZE, in contrast to 45.42% held by mutual funds. Shares owned by individuals account for 23.94%. As the largest shareholder in BRZE with 10.00% of the stake, Iconiq Capital LLC holds 6,384,343 shares worth 6,384,343. A second-largest stockholder of BRZE, The Vanguard Group, Inc., holds 4,940,513 shares, controlling over 7.74% of the firm’s shares. Cadian Capital Management LP is the third largest shareholder in BRZE, holding 4,684,768 shares or 7.34% stake. With a 2.47% stake in BRZE, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 1,578,016 shares are owned by the mutual fund manager. The AB Small Cap Growth Portfolio, which owns about 2.23% of BRZE stock, is the second-largest Mutual Fund holder. It holds 1,421,905 shares valued at 65.78 million. Vanguard Small Cap Index Fund holds 2.02% of the stake in BRZE, owning 1,286,943 shares worth 59.53 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BRZE since 0 analysts follow the stock currently. 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 $65.00 and a low target of $48.00, the average target price over the next 12 months is $56.00. Based on these targets, BRZE could surge 40.27% to reach the target high and rise by 3.58% to reach the target low. Reaching the average price target will result in a growth of 20.85% 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.

Summary of Insider Activity:

Insiders traded BRZE stock several times over the past three months with 5 Buys and 12 Sells. In these transactions, 24,761 shares were bought while 51,434 shares were sold. The number of buy transactions has increased to 66 while that of sell transactions has risen to 57 over the past year. The total number of shares bought during that period was 3,371,678 while 7,664,614 shares were sold.