Blend Labs (NYSE:BLND) Receives Sell (D-) Rating from Weiss Ratings

Key Points

• Blend Labs (NYSE:BLND) has received a Sell (D-) rating from Weiss Ratings, a downgrade reflecting negative outlooks from investment analysts.
• The company's recent quarterly earnings showed a loss of ($0.03) per share, missing the estimated earnings by ($0.05) and falling short of revenue expectations by approximately $410,000.
• Insider trading activity included significant sales, with executives selling a total of 381,886 shares valued at over $1.1 million in the past ninety days.

Blend Labs (NYSE:BLND - Get Free Report)'s stock had its "sell (d-)" rating reissued by investment analysts at Weiss Ratings in a note issued to investors on Wednesday,Weiss Ratings reports.

Several other equities research analysts have also recently weighed in on BLND. Wall Street Zen raised shares of Blend Labs from a "sell" rating to a "hold" rating in a research report on Sunday, August 17th. Canaccord Genuity Group reaffirmed a "buy" rating and set a $5.25 price target on shares of Blend Labs in a report on Friday, August 22nd. UBS Group reduced their price objective on shares of Blend Labs from $4.00 to $3.50 and set a "neutral" rating on the stock in a research report on Friday, August 8th. Finally, Keefe, Bruyette & Woods reduced their price target on shares of Blend Labs from $4.00 to $3.75 and set a "market perform" rating on the stock in a research report on Friday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $4.88.

Blend Labs Price Performance

Shares of NYSE:BLND remained flat at $3.32 during mid-day trading on Wednesday. 3,369,149 shares of the stock were exchanged, compared to its average volume of 2,958,389. Blend Labs has a 52 week low of $2.63 and a 52 week high of $5.53. The firm's fifty day simple moving average is $3.61 and its two-hundred day simple moving average is $3.48. The firm has a market cap of $862.07 million, a price-to-earnings ratio of -22.13 and a beta of 1.24.

Blend Labs (NYSE:BLND - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported ($0.03) earnings per share for the quarter, missing the consensus estimate of $0.02 by ($0.05). The business had revenue of $31.52 million for the quarter, compared to analysts' expectations of $31.93 million. Blend Labs has set its Q3 2025 guidance at EPS. Sell-side analysts anticipate that Blend Labs will post -0.19 EPS for the current fiscal year.

Insider Buying and Selling

In other Blend Labs news, insider Brian Kneafsey sold 25,000 shares of the business's stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $2.87, for a total value of $71,750.00. Following the completion of the sale, the insider owned 696,598 shares in the company, valued at approximately $1,999,236.26. The trade was a 3.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Nima Ghamsari sold 311,886 shares of the stock in a transaction on Thursday, August 14th. The stock was sold at an average price of $2.90, for a total value of $904,469.40. Following the completion of the transaction, the insider owned 5,754,051 shares of the company's stock, valued at $16,686,747.90. The trade was a 5.14% decrease in their position. The disclosure for this sale can be found here. Insiders sold 381,886 shares of company stock valued at $1,135,369 over the last ninety days. 35.52% of the stock is currently owned by corporate insiders.

Institutional Trading of Blend Labs

Several hedge funds have recently added to or reduced their stakes in the business. Marshall Wace LLP raised its holdings in Blend Labs by 157.6% in the 2nd quarter. Marshall Wace LLP now owns 2,522,141 shares of the company's stock valued at $8,323,000 after acquiring an additional 1,543,220 shares in the last quarter. Vanguard Group Inc. boosted its position in shares of Blend Labs by 4.6% in the 1st quarter. Vanguard Group Inc. now owns 17,586,601 shares of the company's stock worth $58,915,000 after purchasing an additional 775,091 shares during the last quarter. Metavasi Capital LP boosted its position in shares of Blend Labs by 15.6% in the 1st quarter. Metavasi Capital LP now owns 5,554,101 shares of the company's stock worth $18,606,000 after purchasing an additional 750,000 shares during the last quarter. Panagora Asset Management Inc. acquired a new stake in Blend Labs during the 2nd quarter worth $2,466,000. Finally, AQR Capital Management LLC raised its stake in shares of Blend Labs by 84.5% in the 2nd quarter. AQR Capital Management LLC now owns 1,629,509 shares of the company's stock valued at $5,377,000 after purchasing an additional 746,213 shares during the period. Institutional investors own 52.56% of the company's stock.

Blend Labs Company Profile

Blend Labs, Inc engages in the provision of cloud-based software platform solutions for financial services firms in the United States. It operates in two segments, Blend Platform and Title365. The company's Blend Builder Platform offers a suite of products that powers digital-first consumer journeys for mortgages, home equity loans and lines of credit, vehicle loans, personal loans, credit cards, and deposit accounts; and offers mortgage products to facilitate the homeownership journey for consumers comprising close, income verification for mortgage, homeowners' insurance, and realty.

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