Blend Labs (NYSE:BLND) Shares Up 6.5% - Still a Buy?

Key Points

• Blend Labs' stock rose 6.5% to $3.03 on Monday, despite a significant decline in trading volume of 77% compared to its average.
• Analysts have mixed opinions, with a recent downgrade from Keefe, Bruyette & Woods setting a price target of $3.75, while others like Canaccord Genuity maintain a "buy" rating with a target of $5.25.
• The company reported a loss of ($0.03) earnings per share for the last quarter, missing expectations and indicating projected further losses for the current year.

Blend Labs, Inc. (NYSE:BLND - Get Free Report) shares rose 6.5% during trading on Monday . The stock traded as high as $3.06 and last traded at $3.03. Approximately 655,643 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 2,832,634 shares. The stock had previously closed at $2.84.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on BLND shares. Keefe, Bruyette & Woods decreased their price target on Blend Labs from $4.00 to $3.75 and set a "market perform" rating on the stock in a research note on Friday, August 8th. Wall Street Zen raised Blend Labs from a "sell" rating to a "hold" rating in a research note on Sunday. Wells Fargo & Company reduced their price target on shares of Blend Labs from $6.00 to $5.00 and set an "overweight" rating on the stock in a report on Tuesday, April 22nd. Canaccord Genuity Group restated a "buy" rating and set a $5.25 price objective on shares of Blend Labs in a research report on Monday, May 12th. Finally, JMP Securities reissued a "market outperform" rating and set a $7.00 price target on shares of Blend Labs in a research report on Wednesday, May 28th. Three equities research analysts have rated the stock with a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $4.88.

Blend Labs Trading Up 7.4%

The stock has a market cap of $791.96 million, a PE ratio of -20.33 and a beta of 1.24. The company's 50 day moving average is $3.38 and its 200-day moving average is $3.45.

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 (EPS) for the quarter, missing the consensus estimate of $0.02 by ($0.05). The business had revenue of $31.52 million during the quarter, compared to the consensus estimate of $31.93 million. As a group, analysts forecast that Blend Labs, Inc. will post -0.19 EPS for the current year.

Insiders Place Their Bets

In other news, insider Nima Ghamsari sold 75,720 shares of the business's stock in a transaction dated Friday, June 13th. The shares were sold at an average price of $3.30, for a total value of $249,876.00. Following the completion of the sale, the insider owned 6,065,937 shares of the company's stock, valued at approximately $20,017,592.10. The trade was a 1.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Brian Kneafsey sold 25,000 shares of the company's stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $3.63, for a total transaction of $90,750.00. Following the completion of the sale, the insider owned 721,598 shares in the company, valued at approximately $2,619,400.74. This trade represents a 3.35% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 224,850 shares of company stock worth $763,164 over the last quarter. 35.52% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Blend Labs

Hedge funds have recently added to or reduced their stakes in the business. Captrust Financial Advisors acquired a new stake in shares of Blend Labs in the 2nd quarter worth about $35,000. Merit Financial Group LLC acquired a new stake in shares of Blend Labs in the first quarter valued at approximately $36,000. Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in shares of Blend Labs during the second quarter worth approximately $37,000. Jump Financial LLC bought a new position in Blend Labs in the 2nd quarter worth approximately $38,000. Finally, Quadrature Capital Ltd bought a new stake in Blend Labs during the 2nd quarter valued at $40,000. Institutional investors and hedge funds 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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