Latest news with #institutionalinvestors
Yahoo
a day ago
- Business
- Yahoo
Where Will Chime Be in 3 Years?
Key Points Chime stock is trading around its closing price on its first day of trading, giving retail investors a chance to buy early. It's reporting strong growth in a niche financial services sector. Management sees a large opportunity to expand its platform and its audience. 10 stocks we like better than Chime Financial › Every investor would love the opportunity to get in early on initial public offerings (IPOs). The earlier you buy, the better the chance to gain, at least in theory. That's not what always happens, especially today, when IPOs are very public indeed and often come with a lot of hype. Part of the problem is that most of an IPO's shares go to institutional investors, especially the investment banks that underwrite the offering. Retail investors get a chance to buy only after the stock is already on the open market, and with the speed at which stocks trade in the markets in the digital age, prices can run up quickly, making it unaffordable for retail investors to have any real chance at a low price. The good news, for retail investors at least, is that this model lends itself to price drops. IPO stock Chime Financial (NASDAQ: CHYM) is a great example. The IPO market has been quiet lately, and Chime was one of few exciting stocks going public in recent months. It priced its IPO at $27 per share, and the stock opened on the stock market at $43. However, it ended the first day at $35, about where it stands today, a few weeks later. Is this an opportunity for retail investors? Let's see where Chime could be three years from now. Equal access in banking Chime is an all-digital bank targeting lower-income clients with financial products to make their lives easier. It grew out of a desire to fill a gap in the banking system, which it says isn't favorable to the two-thirds of Americans who are living paycheck to paycheck. Since this population isn't filling their bank accounts with lucrative deposits, the traditional banking system charges them fees in order to make a profit from them. With today's abundant technology, Chime's founders set out to create an agile and low-cost bank with a different money-making model that relies on interchange fees from credit card payments. Instead of investing in creating its own bank, it has partnerships with two banks that give the company a small cut for the deposits they get from it. Today, Chime offers a small but growing set of services, including savings accounts and credit cards, and it has 8.6 million customers. Of the 75% of transactions per customer in the first quarter, 70% were for nondiscretionary purchases, and 67% of account holders use Chime as their primary bank account. The target population is finding value with Chime. According to a 2024 internal company survey, more people making less than $100,000 annually switched to the company or opened with it for direct deposit more than any other bank, and 75% of Chime members say they will be members for life. They have 3.3 products on average, indicating that members are enjoying being in the ecosystem. Expanding access and its market Right now, management sees an $86 billion opportunity in serving the 196 million Americans who make less than $100,000 annually, of which it has a 3% share. However, it sees potential to expand its platform and its audience and envisions a market opportunity of $426 billion. It's still getting started, which is why it could be attractive for investors. Revenue increased 24% year over year in the 2025 first quarter to $519 million, and gross margin remained at 88%. It reported positive net income in the first quarter in 2024 and 2025, but it has yet to report an annual net profit. New stocks are generally risky, but it looks like Chime has a strong and innovative business model as well as the loyalty of its members. Three years from now, the company is likely to be a lot larger, with more customers and products. Taking that 24% figure as a potential compound annual growth rate during the next three years, it would have about $3.2 billion in revenue, or close to double today's figure. It could be profitable, and if it is, the market might give it a higher valuation, increasing the chance of significant stock gains. Should you buy stock in Chime Financial right now? Before you buy stock in Chime Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chime Financial wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025 Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Where Will Chime Be in 3 Years? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
2 days ago
- Business
- Bloomberg
Amundi Posts Surprise Inflows as Europeans Bring Funds Home
Amundi SA reported another bumper quarter of inflows, surprising analysts who had predicted a reversal, and said it should be able to keep up the pace for the rest of 2025. Net inflows were €20 billion ($23.2 billion) in the second quarter, according to a statement Tuesday, while analysts were expecting €2.8 billion of outflows, according to data compiled by Bloomberg. The gains were driven by institutional investors and Asian clients, while demand was also strong for exchange-traded funds, the Paris-based company said.
Globe and Mail
2 days ago
- Business
- Globe and Mail
Pagaya Closes Upsized $500 Million 8.875% Senior Unsecured Notes Offering, Signaling Strong Investor Confidence
Pagaya Technologies Ltd. (NASDAQ: PGY) ('Pagaya' or the 'Company'), a global technology company delivering AI-driven product solutions for the financial ecosystem, today announced the successful closing of its upsized offering of $500 million of 8.875% senior unsecured notes due 2030 (the 'notes'). Net proceeds from the offering will be used primarily to refinance the existing higher-cost term loan and other secured borrowings. The transaction marks a significant milestone in Pagaya's evolution as a public company, establishing it as one of the first fintechs to access the high-yield unsecured debt markets. Backed by strong demand from many of the world's leading institutional investors, the deal was upsized and approximately 5 times oversubscribed. 'Executing a $500 million high-yield offering with significant investor demand is a milestone that reflects the strength of our financial profile and the institutional support of our platform,' said Gal Krubiner, Co-Founder and CEO of Pagaya. 'This achievement strengthens our ability to scale, drive sustained profitability, and deliver long-term shareholder value.' By refinancing legacy debt and eliminating associated debt amortization, Pagaya further improves its GAAP Net Income profitability and expects to generate approximately $40 million of annualized cash flow savings, based on first quarter 2025 performance, resulting from the following: ~$30 million in reduced debt amortization (a portion of the annualized first quarter 2025 payments made to secured borrowings and long-term debt) and approximately $12 million in annual interest expense reduction. The transaction is expected to lower Pagaya's cost of debt by nearly 200 basis points, while maintaining generally flat net leverage. This offering builds on Pagaya's capital strategy, establishing repeatable access to public debt markets, enhancing capital flexibility, and broadening its long-term investor base. The Company is now rated by all three major credit agencies: S&P, Moody's, and Fitch. 'This transaction is the result of our disciplined financial strategy designed to strengthen our financial foundation, accelerate profitability, and unlock shareholder value,' said Evangelos Perros, CFO of Pagaya. 'By replacing higher cost secured debt with long term unsecured capital, we are improving our operating leverage, cash generation, and strategic positioning in the marketplace.' About Pagaya Technologies Pagaya (NASDAQ: PGY) is a global technology company making life-changing financial products and services available to more people nationwide, as it reshapes the financial services ecosystem. By using machine learning, a vast data network and an AI-driven approach, Pagaya provides comprehensive consumer credit and residential real estate products for its partners, their customers, and investors. Its proprietary API and capital solutions integrate into its network of partners to deliver seamless user experiences and greater access to the mainstream economy. Pagaya has offices in New York and Tel Aviv. Cautionary Note About Forward-Looking Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. These forward-looking statements give our expectations or forecasts of future events and can generally be identified by the words 'anticipate,' 'believe,' 'continue,' 'can,' 'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'opportunity,' 'future,' 'strategy,' 'might,' 'outlook,' 'plan,' 'possible,' 'potential,' 'predict,' 'project,' 'should,' 'strive,' 'will,' 'would,' 'will be,' 'will continue,' 'will likely result,' and similar expressions. All statements other than statements of historical fact are forward-looking statements, including statements regarding the expected benefits of the notes offering. Actual results may differ from those set forth in this press release due to the risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the offering and the other risks and uncertainties described in the Company's filings with the SEC, included under the heading 'Risk Factors' in the Company's Annual Report on Form 10-K and any subsequent filings with the SEC. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements reflect the Company's views with respect to future events as of the date hereof and are based on assumptions and subject to risks and uncertainties. The Company cannot provide any assurances regarding its ability to effectively apply the net proceeds of the offering or achieve the benefits described in this press release. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, reflect the Company's current beliefs and are based on information currently available as of the date they are made, and the Company assumes no obligation and does not intend to update these forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Yahoo
2 days ago
- Business
- Yahoo
NZ wealth management firm FNZ faces $4.6 billion lawsuit from employee shareholders
(Reuters) -Some employee shareholders at New Zealand-based FNZ have filed a $4.6 billion claim against the wealth management firm and 17 current and former directors, alleging their stakes were unfairly diluted through the issuance of preference shares and warrants. Kiwi CayLP, representing FNZ's class B shareholders, alleged a share issuance unfairly shifted $1.5 billion in value to institutional investors and warned their equity could be wiped out if FNZ is valued below $8.3 billion in a sale or IPO. The claim against FNZ's issuance of new preference shares and warrants on non-commercial terms during 2024 and 2025 was filed on Monday. Kiwi CayLP said FNZ was last valued at $20 billion, with class B shareholders holding about 23%, or $4.6 billion. "The claim alleges these transactions were approved by FNZ directors who carried significant conflicts of interest by also being employees and directors of the institutional and private equity investors who stood to benefit from these non-commercial transactions at the expense of FNZ employee shareholders," Kiwi CayLP said. The lawsuit lists 16 instances where FNZ and its directors allegedly breached New Zealand corporate laws by acting oppressively, neglecting fiduciary duties, and misusing their powers. "FNZ notes the claim filed in New Zealand and considers it to be entirely without merit," a spokesperson for the wealth management firm told Reuters in an emailed response. The firm was founded in 2003, and principally operates in Australia, Canada, Germany, New Zealand, the United Kingdom, Singapore, South Africa and Sweden, and operates in the savings, investment and wealth management sectors.
Yahoo
3 days ago
- Business
- Yahoo
Accelerant (ARX) Soars 26% on Market Debut
We recently published . Accelerant Holdings (NYSE:ARX) is one of the best-performing stocks on Thursday. Insurance firm Accelerant Holdings saw its share price surge by 26.19 percent on its first day as a publicly listed company, underscoring strong investor confidence in its stock. In intra-day trading, Accelerant Holdings (NYSE:ARX) rallied by as high as 40 percent to hit $29.45 from its initial public offering price of $21, before paring gains to end the day at $26.5 apiece. The company was able to raise $724 million from its IPO, covering 34.5 million shares. The offering consisted of 20.28 million common shares from Accelerant Holdings (NYSE:ARX) and some 14.18 million shares from other existing shareholders. They had earlier planned on selling 29 million shares at a price ranging from $18 to $20 apiece. Accelerant Holdings (NYSE:ARX) said it will not receive any proceeds from the shares sold by existing shareholders. Founded in 2018, Accelerant Holdings (NYSE:ARX) operates as an insurance marketplace connecting niche sellers with institutional investors. While we acknowledge the potential of ARX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Sign in to access your portfolio
