In a recent transaction, Roger H. Lee, a significant shareholder in Braze, Inc. (NASDAQ:BRZE), sold 56,830 shares of the company's Class A Common Stock. The shares were sold at an average price of $30.27 per share, amounting to a total of approximately $1.72 million. Following this transaction, Lee holds 56,830 shares directly.
Lee continues to have indirect ownership stakes in Braze through various investment entities. These holdings include 31,728 shares through Battery Investment Partners XI, LLC, 684,570 shares via Battery Ventures XI-A, L.P., and 180,878 shares through Battery Ventures XI-B, L.P., among others. The transactions were part of a broader portfolio management strategy, and Lee's involvement with these entities suggests a continued interest in the company's performance.
In other recent news, Braze Inc. reported a 26% increase in its fiscal second quarter 2025 revenue, reaching $145.5 million, and added 61 new customers, bringing the total to 2,163. The company's third quarter revenue is projected to be between $147.5 million and $148.5 million. For the full fiscal year 2025, revenue is expected to be between $582.5 million and $585.5 million.
DA Davidson maintained a Buy rating for Braze with a steady price target of $55.00, citing the company's enterprise-level achievements and potential for continued growth. Despite lowering its price target, TD Cowen also maintained its Buy rating, highlighting Braze's strategies aimed at achieving a return to the Rule of 40, a benchmark indicating a balance between growth and profitability.
BTIG reiterated its Buy rating on Braze, maintaining a $62.00 price target for the company's shares, expressing confidence in Braze's long-term growth prospects. JPMorgan (NYSE:JPM) also reiterated its Overweight rating on Braze with a steady price target of $55.00, after observing a trend of market share moving from traditional marketing stacks to Braze's platform.
Goldman Sachs (NYSE:GS) reaffirmed its Buy rating on Braze with a consistent price target of $65.00, noting the company's commitment to the Rule of 40 principle. These recent developments suggest a positive outlook for Braze Inc, with analysts from multiple firms expressing increased confidence in Braze's long-term growth prospects.
InvestingPro Insights
To provide additional context to Roger H. Lee's recent stock sale, it's worth examining some key financial metrics and insights from InvestingPro for Braze, Inc. (NASDAQ:BRZE).
According to InvestingPro data, Braze has a market capitalization of $3.25 billion and generated revenue of $535.87 million in the last twelve months as of Q2 2023, with a robust revenue growth of 31.12% over the same period. This growth trajectory aligns with the company's position in the dynamic customer engagement platform market.
Despite the strong top-line performance, InvestingPro Tips highlight that Braze is not profitable over the last twelve months, with an adjusted operating income of -$137.76 million. This could explain why insiders like Lee might be adjusting their positions. However, it's noteworthy that 11 analysts have revised their earnings upwards for the upcoming period, suggesting potential improvements in financial performance.
The stock's recent performance has been challenging, with InvestingPro data showing a 23.97% price decline over the past three months. This aligns with another InvestingPro Tip indicating that the price has fallen significantly over the last three months. The current stock price of $31.63 is trading near its 52-week low, which might present an opportunity for investors who believe in the company's long-term prospects.
Interestingly, Braze holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. These factors provide financial flexibility as the company works towards profitability.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 8 more InvestingPro Tips available for Braze, which could provide valuable perspective on the company's financial health and market position.
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