Braze (NASDAQ:BRZE) Sets New 1-Year High – Still a Buy?

Braze, Inc. (NASDAQ:BRZE)’s stock price hit a new 52-week high during mid-day trading on Tuesday. The stock traded as high as $45.45 and last traded at $45.3010, with a volume of 2,610,332 shares traded. The stock had previously closed at $30.04.

Key Stories Impacting Braze

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Salesforce said Braze’s real-time customer data and engagement platform will strengthen its artificial-intelligence strategy, including the Agentforce ecosystem. Investors view the acquisition as validation of Braze’s technology and long-term strategic value. Salesforce Signs Definitive Agreement to Acquire Braze
• Positive Sentiment: UBS called the transaction a solid strategic fit at a reasonable price, noting that Braze brings a faster-growing marketing technology platform to Salesforce. The announcement also helped draw institutional and merger-arbitrage buying, while short sellers covered positions amid unusually heavy volume. Salesforce’s Braze deal wins UBS backing on strategy
• Neutral Sentiment: The transaction is expected to close in fiscal 2028, subject to shareholder approval and antitrust review. Until closing, BRZE may trade close to—but generally below—the $47.50 cash consideration, reflecting regulatory and execution risk.
• Neutral Sentiment: Braze was downgraded by Citigroup from “buy” to “neutral,” with a $47.50 price target. The downgrade reflects limited standalone upside because the acquisition price now anchors the shares.
• Negative Sentiment: Investor-rights law firms, including Kahn Swick & Foti, Amparo, Ademi and Halper Sadeh, are investigating whether the sale price and board process adequately protect shareholders. These announcements do not indicate that a transaction will fail, but they could create litigation or closing uncertainty. Braze Investor Alert

Wall Street Analysts Forecast Growth

Several research analysts have commented on the company. Weiss Ratings raised Braze from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday. Raymond James Financial cut Braze from an “outperform” rating to a “market perform” rating in a research note on Wednesday. Stifel Nicolaus restated a “hold” rating and set a $47.50 price objective (up from $35.00) on shares of Braze in a research report on Tuesday. BTIG Research downgraded Braze from a “buy” rating to a “neutral” rating in a research report on Tuesday. Finally, Canaccord Genuity Group set a $47.50 price objective on Braze in a research note on Tuesday. Seven investment analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Braze has a consensus rating of “Hold” and a consensus target price of $43.95.

Braze Stock Performance

The company has a debt-to-equity ratio of 0.02, a current ratio of 1.27 and a quick ratio of 1.27. The company’s 50-day moving average price is $28.98 and its two-hundred day moving average price is $25.24. The company has a market capitalization of $5.19 billion, a price-to-earnings ratio of -44.35 and a beta of 0.91.

Braze (NASDAQ:BRZE) last announced 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 business had revenue of $227.23 million during the quarter, compared to the consensus estimate of $220.27 million. Braze had a negative net margin of 13.55% and a negative return on equity of 16.11%. Braze’s quarterly revenue was up 26.2% on a year-over-year basis. During the same quarter last year, the firm 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. On average, equities research analysts anticipate that Braze, Inc. will post -0.70 EPS for the current fiscal year.

Insider Transactions at Braze

In other news, CRO Edward Mcdonnell sold 29,732 shares of Braze stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $31.38, for a total value of $932,990.16. Following the completion of the transaction, the executive directly owned 409,630 shares of the company’s stock, valued at approximately $12,854,189.40. This trade represents a 6.77% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Jonathan Hyman sold 42,000 shares of the business’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $32.47, for a total value of $1,363,740.00. Following the completion of the transaction, the chief technology officer directly owned 1,143,219 shares in the company, valued at $37,120,320.93. This represents a 3.54% decrease in their ownership of the stock. 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 ninety days, insiders sold 203,568 shares of company stock valued at $6,096,461. Corporate insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Braze

A number of hedge funds have recently added to or reduced their stakes in BRZE. The Manufacturers Life Insurance Company lifted its stake in Braze by 30.4% in the first quarter. The Manufacturers Life Insurance Company now owns 1,885,577 shares of the company’s stock valued at $44,518,000 after buying an additional 439,513 shares during the period. Stephens Investment Management Group LLC boosted its holdings in shares of Braze by 11.2% during the 1st quarter. Stephens Investment Management Group LLC now owns 1,370,986 shares of the company’s stock worth $32,369,000 after buying an additional 137,843 shares in the last quarter. Dimensional Fund Advisors LP bought a new position in shares of Braze during the 1st quarter worth approximately $14,294,000. Bank of New York Mellon Corp acquired a new stake in shares of Braze during the 2nd quarter worth approximately $11,814,000. Finally, Glenmede Trust Co. NA grew its position in shares of Braze by 36.5% during the 1st quarter. Glenmede Trust Co. NA now owns 538,845 shares of the company’s stock worth $12,722,000 after buying an additional 144,176 shares during the period. 90.47% of the stock is currently owned by institutional investors.

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.