Blend Labs (NYSE:BLND) Trading Down 5.9% - Here's Why

Key Points

• Shares of Blend Labs, Inc. fell by 5.9%, closing at $4.11, with a notable decrease in trading volume compared to averages.
• Several analysts have adjusted their ratings on the stock, with a consensus rating of "Moderate Buy" and a target price of $4.88.
• In recent insider trading, executives sold a combined total of 561,736 shares within the past 90 days, indicating potential concerns about the company's stock performance.

Blend Labs, Inc. (NYSE:BLND - Get Free Report)'s share price dropped 5.9% on Tuesday . The stock traded as low as $4.12 and last traded at $4.11. Approximately 1,777,013 shares were traded during mid-day trading, a decline of 39% from the average daily volume of 2,935,047 shares. The stock had previously closed at $4.37.

Analyst Ratings Changes

BLND has been the subject of several research reports. JMP Securities reiterated a "market outperform" rating and issued a $7.00 target price on shares of Blend Labs in a report on Wednesday, May 28th. UBS Group dropped their target price on shares of Blend Labs from $4.00 to $3.50 and set a "neutral" rating for the company in a report on Friday, August 8th. Canaccord Genuity Group reiterated a "buy" rating and issued a $5.25 target price on shares of Blend Labs in a report on Friday, August 22nd. Wall Street Zen upgraded shares of Blend Labs from a "sell" rating to a "hold" rating in a report on Sunday, August 17th. Finally, Keefe, Bruyette & Woods dropped their target price on shares of Blend Labs from $4.00 to $3.75 and set a "market perform" rating for the company in a report on Friday, August 8th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, Blend Labs presently has an average rating of "Moderate Buy" and a consensus target price of $4.88.

Blend Labs Price Performance

The stock has a 50-day moving average price of $3.49 and a 200 day moving average price of $3.42. The firm has a market cap of $1.12 billion, a price-to-earnings ratio of -28.76 and a beta of 1.25.

Blend Labs (NYSE:BLND - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported ($0.03) EPS for the quarter, missing analysts' consensus estimates of $0.02 by ($0.05). The firm had revenue of $31.52 million during the quarter, compared to analyst estimates of $31.93 million. Blend Labs has set its Q3 2025 guidance at EPS. As a group, equities research analysts predict that Blend Labs, Inc. will post -0.19 earnings per share for the current year.

Insider Transactions at Blend Labs

In other news, insider Brian Kneafsey sold 25,000 shares of the stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $2.87, for a total transaction 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. This represents a 3.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Nima Ghamsari sold 311,886 shares of the stock in a transaction that occurred 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 sale, the insider directly 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 ownership of the stock. The disclosure for this sale can be found here. Insiders sold 441,886 shares of company stock valued at $1,334,169 over the last ninety days. Corporate insiders own 35.52% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Merit Financial Group LLC acquired a new stake in Blend Labs in the first quarter valued at about $36,000. Captrust Financial Advisors acquired a new stake in shares of Blend Labs in the 2nd quarter valued at approximately $35,000. Balyasny Asset Management L.P. acquired a new stake in shares of Blend Labs in the 4th quarter valued at approximately $46,000. Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in shares of Blend Labs in the 2nd quarter valued at approximately $37,000. Finally, Truist Financial Corp purchased a new stake in shares of Blend Labs in the second quarter valued at approximately $41,000. 52.56% of the stock is owned by hedge funds and other institutional investors.

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.