Bumble Inc. (NASDAQ:BMBL) Given Consensus Recommendation of "Reduce" by Brokerages

Key Points

• Bumble shares have a consensus analyst rating of “Reduce.” Among 17 research firms covering the stock, two rate it a sell, 14 a hold, and one a buy, with an average 1-year target price of about $4.33.
• The stock has been under pressure and trades near its 52-week low. Bumble opened at $2.72, close to its 52-week low of $2.61, and remains well below its 52-week high of $8.64.
• Recent financial and insider activity was mixed. Bumble beat quarterly EPS and revenue estimates, but revenue still fell 14.1% year over year; meanwhile, major shareholders sold large blocks of stock and insiders have sold nearly 30 million shares over the past 90 days.

Shares of Bumble Inc. (NASDAQ:BMBL - Get Free Report) have been given a consensus rating of "Reduce" by the seventeen research firms that are covering the stock, MarketBeat reports. Two analysts have rated the stock with a sell recommendation, fourteen have assigned a hold recommendation and one has issued a buy recommendation on the company. The average 1-year target price among analysts that have issued ratings on the stock in the last year is $4.3250.

A number of research analysts recently commented on the stock. Morgan Stanley raised their price objective on shares of Bumble from $3.50 to $4.00 and gave the company an "equal weight" rating in a research note on Thursday, March 12th. Weiss Ratings lowered shares of Bumble from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Thursday, May 7th. BTIG Research reiterated a "neutral" rating on shares of Bumble in a research note on Monday, March 16th. Wells Fargo & Company lowered their price objective on shares of Bumble from $5.50 to $5.00 and set an "equal weight" rating on the stock in a research note on Thursday, March 12th. Finally, Zacks Research upgraded shares of Bumble from a "strong sell" rating to a "hold" rating in a research note on Tuesday, March 10th.

Bumble Price Performance

Shares of NASDAQ:BMBL opened at $2.72 on Friday. The firm's 50 day moving average is $3.48 and its two-hundred day moving average is $3.43. Bumble has a 52 week low of $2.61 and a 52 week high of $8.64. The firm has a market capitalization of $353.11 million, a P/E ratio of -0.47, a PEG ratio of 0.09 and a beta of 1.89. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.58.

Bumble (NASDAQ:BMBL - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $0.34 EPS for the quarter, beating the consensus estimate of $0.25 by $0.09. Bumble had a negative net margin of 72.04% and a positive return on equity of 32.66%. The company had revenue of $212.38 million for the quarter, compared to analyst estimates of $211.59 million. During the same quarter last year, the business earned $0.13 earnings per share. Bumble's revenue was down 14.1% compared to the same quarter last year. Analysts anticipate that Bumble will post 0.99 earnings per share for the current year.

Insider Buying and Selling at Bumble

In related news, major shareholder Buzz Holdings L.P. Bcp sold 7,477,504 shares of the firm's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $3.51, for a total transaction of $26,246,039.04. Following the transaction, the insider owned 25,832 shares in the company, valued at $90,670.32. This trade represents a 99.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder - Nq L.L.C. Btoa sold 7,477,504 shares of the firm's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $3.51, for a total transaction of $26,246,039.04. Following the transaction, the insider owned 25,832 shares in the company, valued at $90,670.32. This represents a 99.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 29,954,042 shares of company stock valued at $105,106,989. 15.35% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in BMBL. Royal Bank of Canada grew its position in Bumble by 409.3% in the first quarter. Royal Bank of Canada now owns 325,121 shares of the company's stock worth $1,410,000 after buying an additional 261,281 shares during the last quarter. Dynamic Technology Lab Private Ltd acquired a new position in Bumble in the first quarter worth approximately $117,000. JPMorgan Chase & Co. grew its position in Bumble by 709.1% in the second quarter. JPMorgan Chase & Co. now owns 713,855 shares of the company's stock worth $4,704,000 after buying an additional 625,631 shares during the last quarter. Prudential Financial Inc. acquired a new position in Bumble in the second quarter worth approximately $392,000. Finally, New York State Common Retirement Fund grew its position in Bumble by 31.1% in the second quarter. New York State Common Retirement Fund now owns 25,631 shares of the company's stock worth $169,000 after buying an additional 6,077 shares during the last quarter. Institutional investors and hedge funds own 94.85% of the company's stock.

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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