Braze (NASDAQ:BRZE) Stock Rating Cut to Hold at Canaccord Genuity Group

Canaccord Genuity Group lowered shares of Braze (NASDAQ:BRZE) from a strong-buy rating to a hold rating in a research report report published on Tuesday morning,Zacks reports.

BRZE has been the topic of a number of other reports. Raymond James Financial cut shares of Braze from an “outperform” rating to a “market perform” rating in a research note on Wednesday. Stephens downgraded shares of Braze from an “overweight” rating to a “buy” rating and increased their target price for the company from $34.00 to $47.50 in a research report on Wednesday. Barclays restated an “equal weight” rating and set a $48.00 price target (up from $38.00) on shares of Braze in a research note on Tuesday. TD Cowen lowered shares of Braze from a “buy” rating to a “hold” rating and raised their price target for the stock from $36.00 to $47.50 in a research note on Tuesday. Finally, Loop Capital cut shares of Braze from a “buy” rating to a “hold” rating and set a $47.50 price target on the stock. in a report on Tuesday. Five investment analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $43.95.

Braze Price Performance

Shares of NASDAQ:BRZE opened at $45.86 on Tuesday. The company’s 50-day moving average is $29.30 and its 200 day moving average is $25.39. 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 market capitalization of $5.21 billion, a P/E ratio of -44.52 and a beta of 0.91. Braze has a fifty-two week low of $15.26 and a fifty-two week high of $45.95.

Braze (NASDAQ:BRZE) last posted its quarterly earnings results on Tuesday, September 8th. The company reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.03. Braze had a negative net margin of 13.55% and a negative return on equity of 16.11%. The company had revenue of $227.23 million during the quarter, compared to analyst estimates of $220.27 million. During the same quarter in the prior year, the business earned $0.15 earnings per share. The firm’s revenue for the quarter was up 26.2% on a year-over-year basis. 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 forecast that Braze will post -0.70 earnings per share for the current year.

Insider Activity at Braze

In related news, CTO Jonathan Hyman sold 285,000 shares of the business’s stock in a transaction dated Tuesday, October 20th. The stock was sold at an average price of $45.33, for a total value of $12,919,050.00. Following the sale, the chief technology officer directly owned 848,219 shares in the company, valued at approximately $38,449,767.27. The trade was a 25.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Astha Malik sold 15,724 shares of the company’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $29.57, for a total transaction of $464,958.68. Following the sale, the insider directly owned 326,233 shares in the company, valued at approximately $9,646,709.81. This trade represents a 4.60% 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 three months, insiders have sold 498,568 shares of company stock worth $19,315,911. Company insiders own 12.50% of the company’s stock.

Institutional Trading of Braze

Institutional investors have recently modified their holdings of the business. The Manufacturers Life Insurance Company boosted its holdings 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 during the period. Stephens Investment Management Group LLC grew its stake in Braze by 11.2% in the 1st quarter. Stephens Investment Management Group LLC now owns 1,370,986 shares of the company’s stock valued at $32,369,000 after buying an additional 137,843 shares in the last quarter. Dimensional Fund Advisors LP bought a new stake in Braze during the 1st quarter valued at $14,294,000. Bank of New York Mellon Corp bought a new stake in Braze during the 2nd quarter valued at $11,814,000. Finally, Glenmede Trust Co. NA raised its holdings in Braze by 36.5% during the 1st quarter. Glenmede Trust Co. NA now owns 538,845 shares of the company’s stock valued at $12,722,000 after acquiring an additional 144,176 shares during the period. 90.47% of the stock is currently owned by hedge funds and other institutional investors.

Braze News Roundup

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Salesforce’s proposed acquisition values Braze at approximately $5.66 billion and offers shareholders $47.50 per share, representing roughly a 58% premium to Braze’s pre-announcement price. The transaction gives investors a defined cash exit and supports the stock’s move toward the offer price. Salesforce Fuels AI Engine With $5.66B Braze Buyout
• Positive Sentiment: UBS described the acquisition as a strategic fit at a reasonable price, noting that Braze would add a faster-growing marketing-technology platform to Salesforce’s portfolio and strengthen its real-time data and AI offerings. Salesforce’s Braze deal wins UBS backing
• Positive Sentiment: Trading activity also reflects bullish sentiment: investors purchased a high volume of Braze call options, while a separate analysis argued that the stock could remain undervalued despite its approximately 80% run. Stock Traders Buy High Volume of Braze Call Options
• Neutral Sentiment: DA Davidson lowered its rating from Buy to Hold, and Citigroup cut its rating from Buy to Neutral. However, both firms set price targets of $47.50, leaving limited upside but broadly aligning with Salesforce’s offer.
• Neutral Sentiment: The deal remains subject to shareholder approval and antitrust review, with completion expected in Salesforce’s fiscal 2028. The current price below $47.50 reflects some uncertainty about closing and timing.
• Negative Sentiment: Several law firms are investigating whether the proposed price and sale process adequately protect Braze shareholders. These inquiries do not currently change the offer but could create legal or deal-completion risks. Braze Investor Alert
• Negative Sentiment: CTO Jonathan Hyman sold a combined 295,000 shares under a pre-arranged Rule 10b5-1 plan. Although the sales were scheduled and he retains a substantial stake, the transactions may weigh modestly on sentiment after the recent rally.

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.