On August 11, Chime Financial, Inc. rose 5.22% in regular trading, trading at $32.33/share, with turnover of $122 million. The rally represents a technical recovery following a sector-wide selloff that had dragged shares down more than 5% on August 8.

The upward move is driven by continued digestion of strong Q2 earnings released on August 5. Chime reported Q2 EPS of $0.07, swinging from a loss of $7.29 a year earlier and beating the FactSet consensus estimate of $0.00. Revenue rose 27% year-over-year to $669.8 million, surpassing the $641.3 million estimate. The company also raised its full-year revenue guidance to $2.725 billion–$2.745 billion, above the prior range of $2.66 billion–$2.69 billion and the market consensus of $2.68 billion. Active users grew 20% to 10.4 million.

Following the results, B. Riley raised its price target on Chime from $35 to $37 while maintaining a Buy rating. The stock had previously surged approximately 24% on the earnings release before pulling back alongside weakness in the broader Transaction and Payment Processing Services sector.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)