Braze (NASDAQ:BRZE) Cut to Hold at DA Davidson

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

Other analysts also recently issued reports about the company. Stephens downgraded Braze from an “overweight” rating to a “buy” rating and raised their price objective for the stock from $34.00 to $47.50 in a research report on Wednesday. The Goldman Sachs Group restated a “buy” rating and issued a $38.00 price objective on shares of Braze in a report on Wednesday, September 9th. UBS Group cut shares of Braze from a “buy” rating to a “neutral” rating and set a $47.50 target price on the stock. in a research report on Tuesday. Piper Sandler lowered shares of Braze from an “overweight” rating to a “neutral” rating and increased their target price for the stock from $30.00 to $47.50 in a research note on Tuesday. Finally, William Blair lowered shares of Braze from a “strong-buy” rating to a “market perform” rating in a research note on Tuesday. Seven analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $43.95.

Braze Trading Up 0.2%

Shares of Braze stock opened at $45.68 on Wednesday. The firm has a market capitalization of $5.19 billion, a price-to-earnings ratio of -44.35 and a beta of 0.91. Braze has a fifty-two week low of $15.26 and a fifty-two week high of $45.82. 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 stock has a 50 day moving average of $28.98 and a 200 day moving average of $25.24.

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

Insider Activity

In related news, CRO Edward M. Mcdonnell sold 29,732 shares of the business’s stock in a transaction on Monday, August 24th. The stock was sold at an average price of $31.38, for a total value of $932,990.16. Following the sale, 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 position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Jonathan Hyman sold 42,000 shares of the stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $32.47, for a total value of $1,363,740.00. Following the transaction, the chief technology officer directly owned 1,143,219 shares in the company, valued at approximately $37,120,320.93. The trade was a 3.54% 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. Over the last ninety days, insiders sold 203,568 shares of company stock valued at $6,096,461. 12.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Braze

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Capstone Capital Management Ltd lifted its holdings in Braze by 306.7% during the 3rd 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 in the last quarter. State of Alaska Department of Revenue boosted its position in Braze by 32.5% in the 3rd quarter. State of Alaska Department of Revenue now owns 5,578 shares of the company’s stock valued at $140,000 after buying an additional 1,367 shares during the period. Juncture Wealth Strategies LLC acquired a new position in shares of Braze in the third quarter worth $210,000. Whetstone Capital Advisors LLC acquired a new position in shares of Braze in the second quarter worth $671,000. Finally, Integrated Wealth Concepts LLC acquired a new position in shares of Braze in the second quarter worth $50,000. 90.47% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Braze

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Salesforce will pay $47.50 per Braze share, valuing the transaction at approximately $5.66 billion and representing about a 58% premium to Braze’s prior closing price. The premium explains the stock’s surge and provides a defined potential exit value for shareholders if the deal closes. Salesforce Signs Definitive Agreement to Acquire Braze
• Positive Sentiment: UBS characterized the acquisition as a strong strategic fit at a reasonable price. Braze’s rapidly growing platform and real-time customer data could strengthen Salesforce’s Agentforce artificial-intelligence strategy and expand its marketing technology capabilities. Salesforce’s Braze deal wins UBS backing on strategy, but growth concerns remain
• Positive Sentiment: Trading activity has been unusually strong, including a reported 447% increase in call-option volume versus typical levels. The activity indicates speculative and arbitrage interest following the takeover announcement, although it does not change the transaction terms.
• Neutral Sentiment: The deal is expected to close in fiscal 2028, subject to shareholder approval and antitrust review. The delay leaves investors exposed to regulatory, financing and execution risks, while the spread below $47.50 reflects uncertainty over completion.
• Negative Sentiment: Citigroup downgraded Braze from Buy to Neutral and set a $47.50 price target, implying limited upside beyond the cash offer. With the takeover price now anchoring valuation, Braze’s standalone growth prospects are less relevant to near-term trading. Salesforce Fuels AI Engine With $5.66B Braze Buyout
• Negative Sentiment: Several investor-rights law firms are investigating whether the $47.50 consideration and sale process adequately protect shareholders, including potential conflicts, deal restrictions and whether competing offers were sufficiently pursued. These reviews could create negotiation or litigation risk, though they have not changed the announced terms. Braze Investor Alert

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.