Bumble (NASDAQ:BMBL) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Bumble from “buy” to “hold,” adding to a largely cautious analyst outlook. Fifteen analysts rate the stock “hold,” while the consensus rating is “reduce” with an average price target of $3.99.
• Bumble shares opened at $2.83, near their 52-week low of $2.54, after several firms cut their price targets. The company reported year-over-year revenue declines and expects third-quarter revenue of $205 million to $213 million as paying users continue to fall.
• Insider selling has been substantial, with insiders selling nearly 30 million shares worth about $113.2 million over the past three months. Bumble is promoting its newer Plans app and investing in marketing to improve user acquisition and diversify engagement.

Bumble (NASDAQ:BMBL - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

A number of other equities research analysts also recently commented on the stock. Susquehanna lowered their price target on shares of Bumble from $3.50 to $3.00 and set a "neutral" rating for the company in a report on Friday. Citigroup decreased their target price on shares of Bumble from $3.90 to $3.60 and set a "neutral" rating on the stock in a research report on Tuesday, May 26th. Wells Fargo & Company lowered their target price on shares of Bumble from $5.00 to $4.00 and set an "equal weight" rating for the company in a research note on Friday. UBS Group boosted their price target on Bumble from $4.00 to $4.50 and gave the company a "neutral" rating in a report on Wednesday, May 6th. Finally, Royal Bank Of Canada reduced their price target on Bumble from $5.00 to $4.00 and set a "sector perform" rating on the stock in a research note on Friday. One research analyst has rated the stock with a Buy rating, fifteen have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $3.99.

Bumble Stock Down 0.7%

BMBL opened at $2.83 on Friday. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.58. The firm has a market cap of $367.39 million, a P/E ratio of -0.67, a PEG ratio of 0.09 and a beta of 1.87. Bumble has a 52 week low of $2.54 and a 52 week high of $7.37. The business's fifty day simple moving average is $2.97 and its 200 day simple moving average is $3.27.

Bumble (NASDAQ:BMBL - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported ($0.84) earnings per share for the quarter, missing the consensus estimate of $0.25 by ($1.09). The firm had revenue of $210.53 million during the quarter, compared to analyst estimates of $210.46 million. Bumble had a negative net margin of 58.99% and a positive return on equity of 33.68%. The company's revenue for the quarter was down 15.2% compared to the same quarter last year. During the same period in the previous year, the firm posted ($2.45) EPS. As a group, equities research analysts anticipate that Bumble will post 1.03 EPS for the current fiscal year.

Insider Activity at Bumble

In related news, major shareholder Buzz Holdings L.P. Bcp sold 7,477,500 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $3.78, for a total value of $28,264,950.00. Following the transaction, the insider directly owned 19,374 shares of the company's stock, valued at approximately $73,233.72. This trade represents a 99.74% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Ann Mather sold 22,013 shares of Bumble stock in a transaction 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 completion of the transaction, the director owned 117,853 shares in the company, valued at $328,809.87. The trade was a 15.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 29,954,026 shares of company stock worth $113,182,633. 15.35% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Bumble

A number of large investors have recently modified their holdings of the company. Saba Capital Management L.P. grew its stake 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 worth $19,055,000 after buying an additional 1,838,923 shares during the period. Renaissance Technologies LLC increased its position in shares of Bumble by 48.6% in the first quarter. Renaissance Technologies LLC now owns 4,213,887 shares of the company's stock worth $13,737,000 after acquiring an additional 1,378,487 shares in the last quarter. Jacobs Levy Equity Management Inc. purchased a new position in shares of Bumble in the 4th quarter valued at $3,516,000. Cubist Systematic Strategies LLC lifted its holdings in shares of Bumble by 3,714.4% during the 2nd quarter. Cubist Systematic Strategies LLC now owns 923,093 shares of the company's stock valued at $6,083,000 after acquiring an additional 898,893 shares in the last quarter. Finally, Barclays PLC lifted its holdings in shares of Bumble by 137.7% during the 3rd quarter. Barclays PLC now owns 1,380,934 shares of the company's stock valued at $8,410,000 after acquiring an additional 799,947 shares in the last quarter. 94.85% of the stock is currently owned by hedge funds and other institutional investors.

Bumble News Roundup

Here are the key news stories impacting Bumble this week:

• Positive Sentiment: Bumble’s second-quarter adjusted earnings reportedly exceeded Wall Street expectations, with earnings of $0.45 per share versus the $0.25 consensus estimate. Revenue was approximately $210.5 million, broadly matching forecasts. Bumble Inc. Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company is promoting its newer Plans app, which is designed to facilitate low-pressure, in-person group meetups. Early traction and a shift away from traditional swiping could help Bumble attract younger users and diversify engagement over time. Bumble teases a swipe-free future as it doubles down on IRL meetups
• Neutral Sentiment: Royal Bank of Canada lowered its price target from $5.00 to $4.00 while maintaining a “sector perform” rating. Wells Fargo also reduced its target to $4.00 and kept an “equal weight” rating, indicating analysts see upside but remain cautious. Benzinga analyst updates
• Negative Sentiment: Bumble forecast third-quarter revenue of $205 million to $213 million, reflecting continued growth concerns. Management expects marketing investment to support user acquisition, with an approximately 28% adjusted EBITDA margin midpoint. Bumble Q3 revenue outlook
• Negative Sentiment: Reuters reported that Bumble’s paying-user base declined, contributing to a downbeat quarterly revenue forecast. The company’s revenue also fell year over year, intensifying concerns about competition, user monetization and the effectiveness of its turnaround strategy. Bumble forecasts downbeat quarterly revenue as paying users drop
• Negative Sentiment: Susquehanna cut its target from $3.50 to $3.00 and Goldman Sachs reduced its target from $5.00 to $3.50; both firms rated the stock “neutral.” The broad wave of target reductions is likely weighing on investor sentiment. Benzinga analyst updates

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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