On September 9, Chime Financial, Inc. rose 7.68% in regular trading, trading at 34.52 USD/share, with Turnover of approximately $30.21 million. The rally was driven by a major strategic acquisition announcement and an upward revision to financial guidance.

The company announced it will acquire nationally chartered Stride Bank for $590 million in cash. Upon closing, Stride will be renamed Chime Bank, N.A. and operate as a wholly owned subsidiary. Stride Bank has partnered with Chime for over seven years, and the acquisition will bring key banking infrastructure in-house as the company seeks to expand its lending business. Chime stated the deal will be funded entirely from existing cash reserves on its balance sheet, requiring no additional capital injection. The transaction is expected to be immediately accretive to earnings per share, with net synergies exceeding $100 million, primarily derived from sponsor bank fee savings, expanded lending products, and a lower cost of funds. The deal is expected to close in the first half of next year.

Simultaneously, Chime raised its Q3 revenue outlook to $705 million and full-year revenue guidance to $2.76 billion to $2.77 billion. Additionally, Loop Capital initiated coverage on the stock with a Buy rating and a $45 price target, while the consensus mean target stands at $37.91.

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