Braze (NASDAQ:BRZE) Stock Gets Downgrade from Mizuho

Braze (NASDAQ:BRZE) was downgraded by analysts at Mizuho from a “strong-buy” rating to a “hold” rating in a research report issued on Wednesday, Zacks reports.

Several other brokerages have also weighed in on BRZE. Stephens lowered Braze from an “overweight” rating to a “buy” rating and lifted their price objective for the stock from $34.00 to $47.50 in a report on Wednesday. Citigroup lowered Braze from a “buy” rating to a “neutral” rating and dropped their price objective for the company from $48.00 to $47.50 in a research note on Wednesday. Needham & Company LLC cut shares of Braze from a “buy” rating to a “hold” rating in a research note on Tuesday. Canaccord Genuity Group set a $47.50 price objective on Braze in a research report on Tuesday. Finally, Wells Fargo & Company lowered Braze from an “overweight” rating to an “equal weight” rating and increased their price objective for the company from $45.00 to $47.50 in a research report on Tuesday. Five investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Braze has a consensus rating of “Hold” and an average target price of $43.95.

Braze Stock Performance

BRZE stock opened at $45.86 on Wednesday. The firm has a market cap of $5.21 billion, a PE ratio of -44.52 and a beta of 0.91. The business has a 50 day moving average of $29.30 and a 200-day moving average of $25.39. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 0.02. Braze has a 12-month low of $15.26 and a 12-month high of $45.95.

Braze (NASDAQ:BRZE) last posted its quarterly earnings data on Tuesday, September 8th. The company reported $0.19 earnings per share (EPS) 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%. The firm’s quarterly revenue was up 26.2% compared to the same quarter last year. During the same quarter last year, the company posted $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. As a group, sell-side analysts expect that Braze will post -0.70 earnings per share for the current year.

Insider Buying and Selling at Braze

In other news, CRO Edward M. 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 transaction, the executive owned 409,630 shares in the company, valued at approximately $12,854,189.40. The trade was a 6.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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 business’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $29.57, for a total value of $464,958.68. Following the completion of the sale, the insider directly owned 326,233 shares of the company’s stock, valued at approximately $9,646,709.81. This trade represents a 4.60% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 498,568 shares of company stock worth $19,315,911 over the last three months. Company insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Braze

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Sterling Capital Management LLC grew its holdings in shares of Braze by 840.2% in the third quarter. Sterling Capital Management LLC now owns 3,159 shares of the company’s stock worth $79,000 after purchasing an additional 2,823 shares during the last quarter. Capstone Capital Management Ltd increased its stake in shares of Braze by 306.7% in the third quarter. Capstone Capital Management Ltd now owns 47,986 shares of the company’s stock worth $1,204,000 after buying an additional 36,186 shares during the period. State of Alaska Department of Revenue increased its stake in shares of Braze by 32.5% in the third quarter. State of Alaska Department of Revenue now owns 5,578 shares of the company’s stock worth $140,000 after buying an additional 1,367 shares during the period. Juncture Wealth Strategies LLC bought a new stake in Braze during the 3rd quarter valued at $210,000. Finally, Whetstone Capital Advisors LLC bought a new stake in Braze during the 2nd quarter valued at $671,000. 90.47% of the stock is currently owned by institutional investors.

Trending Headlines about Braze

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.

Braze Company Profile

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.