Braze (NASDAQ:BRZE) Shares Gap Down – What’s Next?

Braze, Inc. (NASDAQ:BRZE)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $24.58, but opened at $22.63. Braze shares last traded at $23.4240, with a volume of 2,003,616 shares changing hands.

Key Braze News

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Citigroup lowered its price target slightly to $48 from $49 but kept a Buy rating, implying significant upside from current levels. Citigroup lowers Braze price target but keeps Buy rating
• Positive Sentiment: Citizens JMP reiterated Market Outperform with a $35 target, while DA Davidson kept a Buy rating at $33 and Cantor Fitzgerald reaffirmed Overweight at $38. Multiple analyst upgrades/reaffirmations often support the stock. Analyst reaffirmations and price targets for Braze
• Positive Sentiment: Braze raised fiscal 2027 guidance, with EPS now expected at $0.610-$0.650 and revenue at $895 million-$899 million, both above or near consensus. That suggests management is still seeing solid demand momentum. Braze raises FY 2027 outlook
• Neutral Sentiment: Several writeups focused on Braze’s Q1 results, highlighting strong revenue growth and AI adoption, but also noting mixed margins and recent post-earnings volatility. Braze Q1 2027 earnings call highlights
• Negative Sentiment: Investors remain cautious about profitability after the latest quarter, since margins were viewed as mixed even though revenue topped estimates and guidance improved. Braze shares slide as investors weigh mixed margins
• Negative Sentiment: The CFO transition and a new disclosure about foreign-exchange risk could add near-term uncertainty around execution and margins, especially as Braze expands globally. Braze currency risk disclosure

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the company. Oppenheimer cut their target price on Braze from $40.00 to $30.00 and set an “outperform” rating on the stock in a research report on Wednesday, March 25th. JPMorgan Chase & Co. lifted their target price on Braze from $32.00 to $33.00 and gave the company an “overweight” rating in a research report on Wednesday, March 25th. Citigroup cut their target price on Braze from $49.00 to $48.00 and set a “buy” rating on the stock in a research report on Friday. The Goldman Sachs Group cut their price objective on Braze from $45.00 to $40.00 and set a “buy” rating on the stock in a research report on Wednesday, March 25th. Finally, Citizens Jmp reissued a “market outperform” rating and issued a $35.00 price objective on shares of Braze in a research report on Thursday. Twenty-two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Braze presently has a consensus rating of “Moderate Buy” and an average target price of $36.14.

Braze Stock Up 9.7%

The company has a 50-day simple moving average of $22.24 and a two-hundred day simple moving average of $24.51. The firm has a market cap of $2.91 billion, a PE ratio of -22.88 and a beta of 0.78.

Braze (NASDAQ:BRZE) last posted its quarterly earnings data on Wednesday, May 27th. The company reported $0.10 earnings per share for the quarter, hitting the consensus estimate of $0.10. Braze had a negative return on equity of 17.33% and a negative net margin of 15.51%.The business had revenue of $211.00 million for the quarter, compared to analysts’ expectations of $205.19 million. During the same quarter in the previous year, the firm earned $0.07 earnings per share. The business’s revenue was up 30.2% on a year-over-year basis. Braze has set its Q2 2027 guidance at 0.150-0.160 EPS. As a group, equities analysts predict that Braze, Inc. will post -0.87 earnings per share for the current year.

Insider Activity

In other Braze news, General Counsel Susan Wiseman sold 35,000 shares of the business’s stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $20.29, for a total value of $710,150.00. Following the sale, the general counsel directly owned 209,424 shares in the company, valued at $4,249,212.96. The trade was a 14.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 12.50% of the stock is currently owned by insiders.

Institutional Trading of Braze

Hedge funds have recently made changes to their positions in the company. NBC Securities Inc. bought a new stake in shares of Braze in the fourth quarter valued at $27,000. Fifth Third Bancorp bought a new stake in shares of Braze in the first quarter valued at $27,000. Caitong International Asset Management Co. Ltd raised its stake in shares of Braze by 3,650.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 825 shares of the company’s stock valued at $28,000 after buying an additional 803 shares during the period. Osaic Holdings Inc. raised its stake in shares of Braze by 821.1% in the second quarter. Osaic Holdings Inc. now owns 1,575 shares of the company’s stock valued at $44,000 after buying an additional 1,404 shares during the period. Finally, Quarry LP bought a new stake in shares of Braze in the third quarter valued at $46,000. 90.47% of the stock is currently owned by institutional investors.

Braze Company Profile

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.