Bumble (NASDAQ:BMBL) Shares Gap Down - Should You Sell?

Key Points

• Bumble Inc. shares gapped down from a previous close of $7.15 to an opening price of $5.88, currently trading at $6.15 with significant trading volume.
• Analyst ratings for Bumble show a consensus "Hold" rating, with price targets ranging from $4.00 to $9.00, as the company's valuation hits an all-time low.
• The latest quarterly earnings report revealed a positive EPS of $0.64 that surpassed estimates, despite a year-on-year revenue decline of 7.6% to $248.23 million.

Shares of Bumble Inc. (NASDAQ:BMBL - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $7.15, but opened at $5.88. Bumble shares last traded at $6.15, with a volume of 3,751,664 shares.

Wall Street Analyst Weigh In

Several analysts recently commented on the company. Stifel Nicolaus dropped their price target on Bumble from $6.00 to $4.00 and set a "hold" rating for the company in a research report on Wednesday, April 23rd. UBS Group raised their price target on shares of Bumble from $6.00 to $7.50 and gave the stock a "neutral" rating in a research note on Wednesday, July 23rd. Susquehanna reaffirmed a "neutral" rating and set a $7.00 price objective (up previously from $5.00) on shares of Bumble in a research note on Monday, August 11th. Royal Bank Of Canada upped their price target on Bumble from $7.00 to $7.50 and gave the company an "outperform" rating in a research report on Thursday, August 7th. Finally, Wells Fargo & Company reiterated a "positive" rating on shares of Bumble in a research report on Friday, June 27th. Three analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Bumble presently has an average rating of "Hold" and an average target price of $6.63.

Bumble Stock Up 0.2%

The business has a 50 day simple moving average of $6.59 and a 200 day simple moving average of $5.77. The company has a market capitalization of $663.58 million, a price-to-earnings ratio of 11.18, a PEG ratio of 0.89 and a beta of 1.96. The company has a debt-to-equity ratio of 1.00, a current ratio of 3.30 and a quick ratio of 3.30.

Bumble (NASDAQ:BMBL - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $0.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.37 by $0.27. Bumble had a positive return on equity of 10.35% and a negative net margin of 82.41%.The firm had revenue of $248.23 million for the quarter, compared to the consensus estimate of $243.72 million. During the same quarter in the previous year, the business earned $0.22 EPS. The company's quarterly revenue was down 7.6% compared to the same quarter last year. As a group, equities analysts predict that Bumble Inc. will post 4.19 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Whitney Wolfe Herd sold 1,365,116 shares of the company's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $6.26, for a total transaction of $8,545,626.16. Following the sale, the chief executive officer owned 1,598,258 shares of the company's stock, valued at approximately $10,005,095.08. This represents a 46.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Holdings Gp Man Blackstone III sold 16,689,884 shares of the stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $6.26, for a total value of $104,478,673.84. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 68,124,652 shares of company stock valued at $426,460,322. Corporate insiders own 15.84% of the company's stock.

Institutional Investors Weigh In On Bumble

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Ameriprise Financial Inc. increased its position in Bumble by 25.5% during the fourth quarter. Ameriprise Financial Inc. now owns 6,382,478 shares of the company's stock worth $51,953,000 after buying an additional 1,298,630 shares during the period. Maple Rock Capital Partners Inc. acquired a new position in Bumble during the second quarter worth about $30,127,000. Dimensional Fund Advisors LP increased its stake in Bumble by 0.6% in the 4th quarter. Dimensional Fund Advisors LP now owns 3,965,283 shares of the company's stock valued at $32,279,000 after purchasing an additional 22,136 shares in the last quarter. RPD Fund Management LLC acquired a new position in shares of Bumble during the 4th quarter worth $30,940,000. Finally, Bank of America Corp DE lifted its holdings in shares of Bumble by 11.2% in the second quarter. Bank of America Corp DE now owns 1,856,221 shares of the company's stock valued at $12,232,000 after purchasing an additional 187,299 shares in the last quarter. 94.85% of the stock is currently owned by institutional investors and hedge funds.

Bumble Company Profile

Bumble Inc provides online dating and social networking platforms in North America, Europe, internationally. It owns and operates websites and applications that offers subscription and in-app purchases dating products. The company operates apps, including Bumble, a dating app built with women at the center, where women make the first move; Badoo, the web and mobile free-to-use dating app; Official app where users connect their profile with that of their partner enabling a shared, linked product experience; Bumble BFF and Bumble Bizz Modes that have a format similar to the date mode requiring users to set up profiles and matching users through yes and no votes, similar to the dating platform; and Bumble for Friends, a friendship app where people in all stages of life can meet people nearby and create meaningful platonic connections, as well as Fruitz app is centered around encouraging honesty and transparency by sharing dating intentions from the first touch point.