Wells Fargo Reiterates Buy Rating on Chime Financial Stock After First Profitable Quarter

Key Stats for Chime Financial Stock

• Price change for Chime Financial stock: 11%
• $CHYM Share Price as of Jun. 26: $20
• 52-Week High: $39
• $CHYM Stock Price Target: $31

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What Happened?

Chime Financial (CHYM) stock rose 11% on Friday despite insider selling and broader fintech volatility.

On June 22, Wells Fargo reiterated its Buy rating on Chime Financial stock with a $28 price target, implying more than 40% upside from current levels. The bullish call follows a landmark earnings report.

In Q1 2026, Chime posted its first-ever quarter of GAAP profitability, with earnings per share of $0.13. Revenue came in at $647.4 million, driven by 19% year-over-year growth in active members.

The company now has 10.2 million active members, a new record. Management was confident enough in the momentum to raise its full-year outlook.

Revenue guidance was lifted to $2.66 billion to $2.69 billion for 2026, with adjusted EBITDA expected between $416 million and $431 million.

The insider selling is what’s been dragging on Chime Financial stock.

General Counsel Adam Frankel sold 3,000 shares on June 9 and another 3,000 shares on June 15. He still holds over 303,000 shares, so it’s not a full exit. But insider sales at a newly public company tend to unsettle investors, and that’s showing up in the stock price.

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What the Market Is Telling Us About Chime Financial Stock

Chime Financial stock is caught in a tug of war between strong fundamentals and near-term sentiment headwinds.

• On the positive side, the business is clearly gaining momentum.
• Chime ranked number one in U.S. checking account openings according to J.D. Power’s Q1 survey.
• Its newest product, Chime Prime, is already showing early signs of improving member retention and direct deposit adoption.
• The company’s MyPay short-term loan product is now running at a $400 million annual run rate with strong margins.

The concern, of course, is insider selling right after the IPO phase. Combined with broader fintech weakness, that’s pushed Chime Financial stock lower even as the business hits new milestones.

Wells Fargo’s reaffirmed Buy rating suggests the selloff may be an overreaction.

With GAAP profitability now in hand, raised guidance, and a clear product roadmap including investing accounts and AI-powered features ahead, the underlying story remains intact.

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How Much Upside Does Chime Financial Stock Have From Here?

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!