Blend Labs (NYSE:BLND) Trading Down 5.9% - Should You Sell?

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 stock price fell 5.9% on Tuesday . The company traded as low as $4.12 and last traded at $4.11. 1,777,013 shares traded hands during trading, a decline of 39% from the average session volume of 2,935,047 shares. The stock had previously closed at $4.37.

Analyst Upgrades and Downgrades

BLND has been the subject of several analyst reports. Wall Street Zen raised shares of Blend Labs from a "sell" rating to a "hold" rating in a report on Sunday, August 17th. Keefe, Bruyette & Woods reduced their price target 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. Canaccord Genuity Group reissued a "buy" rating and set a $5.25 price target on shares of Blend Labs in a report on Friday, August 22nd. JMP Securities reissued a "market outperform" rating and set a $7.00 price target on shares of Blend Labs in a report on Wednesday, May 28th. Finally, UBS Group reduced their price target 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. One research 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 stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $4.88.

Blend Labs Price Performance

The firm has a market cap of $1.12 billion, a price-to-earnings ratio of -28.73 and a beta of 1.25. The firm's fifty day moving average is $3.51 and its two-hundred day moving average is $3.43.

Blend Labs (NYSE:BLND - Get Free Report) last posted its quarterly earnings data 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 company had revenue of $31.52 million for the quarter, compared to analyst estimates of $31.93 million. Blend Labs has set its Q3 2025 guidance at EPS. On average, equities analysts forecast that Blend Labs, Inc. will post -0.19 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Nima Ghamsari sold 311,886 shares of the company's stock in a transaction dated Thursday, August 14th. The shares were sold at an average price of $2.90, for a total value of $904,469.40. Following the completion of the sale, the insider owned 5,754,051 shares of the company's stock, valued at $16,686,747.90. This represents a 5.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Brian Kneafsey sold 25,000 shares of the company's stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $2.87, for a total transaction of $71,750.00. Following the completion of the sale, the insider directly owned 696,598 shares of the company's stock, valued at $1,999,236.26. The trade was a 3.46% decrease in their position. The disclosure for this sale can be found here. Insiders sold 441,886 shares of company stock valued at $1,334,169 in the last ninety days. Corporate insiders own 35.52% of the company's stock.

Institutional Investors Weigh In On Blend Labs

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Squarepoint Ops LLC lifted its holdings in Blend Labs by 193.1% in the 2nd quarter. Squarepoint Ops LLC now owns 423,685 shares of the company's stock valued at $1,398,000 after acquiring an additional 279,129 shares during the last quarter. State of Wyoming lifted its holdings in Blend Labs by 61.0% in the 2nd quarter. State of Wyoming now owns 31,962 shares of the company's stock valued at $105,000 after acquiring an additional 12,115 shares during the last quarter. Tower Research Capital LLC TRC lifted its holdings in Blend Labs by 571.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 31,953 shares of the company's stock valued at $105,000 after acquiring an additional 27,192 shares during the last quarter. Corient Private Wealth LLC acquired a new stake in Blend Labs in the 2nd quarter valued at about $79,000. Finally, Captrust Financial Advisors acquired a new stake in Blend Labs in the 2nd quarter valued at about $35,000. 52.56% of the stock is owned by institutional investors and hedge funds.

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.