Bumble Inc. (NASDAQ:BMBL) Given Consensus Rating of "Reduce" by Analysts

Key Points

• Bumble has a consensus analyst rating of “Reduce.” Among 18 analysts covering the stock, two rate it a sell, 15 a hold, and one a buy, with an average 12-month price target of about $4.33.
• The stock has been under pressure despite a recent earnings beat. Bumble’s latest quarter topped EPS and revenue estimates, but revenue still fell 14.1% year over year, and shares were trading around $3.12, near their 50-day and 200-day moving averages.
• Insider selling has been significant. A director and a major shareholder recently sold large blocks of shares, and insiders have sold nearly 30 million shares worth about $113.2 million over the last 90 days.

Bumble Inc. (NASDAQ:BMBL - Get Free Report) has been assigned a consensus rating of "Reduce" from the eighteen analysts that are currently covering the stock, MarketBeat reports. Two equities research analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and one has assigned a buy rating to the company. The average 12-month target price among brokerages that have updated their coverage on the stock in the last year is $4.3250.

A number of research firms have recently commented on BMBL. Susquehanna restated a "neutral" rating and set a $3.50 price target on shares of Bumble in a research report on Thursday, March 12th. UBS Group lifted their price objective on Bumble from $4.00 to $4.50 and gave the company a "neutral" rating in a research note on Wednesday, May 6th. JPMorgan Chase & Co. upgraded Bumble from an "underweight" rating to a "neutral" rating in a research report on Thursday, March 12th. Wall Street Zen upgraded Bumble from a "hold" rating to a "buy" rating in a research note on Saturday, June 27th. Finally, William Blair reaffirmed an "outperform" rating on shares of Bumble in a report on Monday, March 16th.

Bumble Trading Down 1.6%

Shares of BMBL opened at $3.12 on Wednesday. The business's 50-day moving average price is $3.20 and its 200-day moving average price is $3.36. Bumble has a twelve month low of $2.54 and a twelve month high of $8.64. The stock has a market cap of $405.04 million, a PE ratio of -0.53, a P/E/G ratio of 0.10 and a beta of 1.86. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.58.

Bumble (NASDAQ:BMBL - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The company reported $0.34 EPS for the quarter, beating the consensus estimate of $0.25 by $0.09. The company had revenue of $212.38 million during the quarter, compared to analysts' expectations of $211.59 million. Bumble had a negative net margin of 72.04% and a positive return on equity of 32.66%. Bumble's revenue for the quarter was down 14.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.13 earnings per share. On average, equities analysts forecast that Bumble will post 1.03 EPS for the current fiscal year.

Insider Activity at Bumble

In related news, Director Ann Mather sold 22,013 shares of the company's stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $2.79, for a total value of $61,416.27. Following the transaction, the director directly owned 117,853 shares in the company, valued at approximately $328,809.87. This represents a 15.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Buzz Holdings L.P. Bcp sold 7,477,500 shares of Bumble stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $3.78, for a total transaction of $28,264,950.00. Following the sale, the insider owned 19,374 shares of the company's stock, valued at approximately $73,233.72. The trade was a 99.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 29,954,026 shares of company stock valued at $113,182,633 in the last ninety days. Insiders own 15.35% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Saba Capital Management L.P. raised its position in Bumble by 52.6% during the fourth quarter. Saba Capital Management L.P. now owns 5,337,549 shares of the company's stock valued at $19,055,000 after purchasing an additional 1,838,923 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Bumble by 10.6% in the 3rd quarter. Dimensional Fund Advisors LP now owns 4,882,350 shares of the company's stock worth $29,735,000 after purchasing an additional 466,646 shares in the last quarter. Renaissance Technologies LLC increased its position in shares of Bumble by 48.6% during the 1st quarter. Renaissance Technologies LLC now owns 4,213,887 shares of the company's stock valued at $13,737,000 after purchasing an additional 1,378,487 shares during the last quarter. Bank of America Corp DE increased its position in shares of Bumble by 36.2% during the 3rd quarter. Bank of America Corp DE now owns 2,528,128 shares of the company's stock valued at $15,396,000 after purchasing an additional 671,907 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of Bumble by 2.2% during the 4th quarter. Geode Capital Management LLC now owns 1,857,944 shares of the company's stock valued at $6,634,000 after buying an additional 39,625 shares in the last quarter. 94.85% of the stock is currently owned by hedge funds and other institutional investors.

About Bumble

Bumble Inc operates a technology platform designed to facilitate social and professional connections through its suite of apps, most notably the flagship Bumble dating app. The company's core premise is to empower users—particularly women—to make the first move, helping to reshape traditional dating dynamics. In addition to its dating function, Bumble offers mode-switching features that allow users to find friends through “Bumble BFF” or pursue professional networking opportunities via “Bumble Bizz.”

Beyond the Bumble app, the company also owns and operates Badoo, a social discovery platform with a substantial global footprint, particularly in Europe and Latin America.

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