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 prior to trading 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 trading hands.

Analyst Ratings Changes

Several brokerages have issued reports on BMBL. Susquehanna reiterated a "neutral" rating and issued a $7.00 price target (up from $5.00) on shares of Bumble in a research note on Monday. The Goldman Sachs Group lifted their price target on shares of Bumble from $8.00 to $9.00 and gave the company a "buy" rating in a research note on Thursday, May 8th. UBS Group lifted their price target on shares of Bumble from $6.00 to $7.50 and gave the company a "neutral" rating in a research note on Wednesday, July 23rd. Stifel Nicolaus decreased their price objective on shares of Bumble from $6.00 to $4.00 and set a "hold" rating for the company in a research report on Wednesday, April 23rd. Finally, Morgan Stanley lifted their price objective on shares of Bumble from $5.50 to $6.00 and gave the company an "equal weight" rating in a research report on Friday, August 8th. Two analysts have rated the stock with a sell rating, ten have issued a hold rating and three have issued a buy rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $6.69.

Bumble Stock Performance

The stock's 50-day moving average is $6.54 and its 200-day moving average is $5.85. The firm has a market capitalization of $633.69 million, a price-to-earnings ratio of -1.25, a PEG ratio of 0.23 and a beta of 1.96. The company has a current ratio of 3.30, a quick ratio of 2.83 and a debt-to-equity ratio of 1.00.

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

Institutional Investors Weigh In On Bumble

Institutional investors have recently modified their holdings of the company. Tower Research Capital LLC TRC boosted its stake in Bumble by 20.3% during the fourth quarter. Tower Research Capital LLC TRC now owns 7,400 shares of the company's stock worth $60,000 after acquiring an additional 1,249 shares in the last quarter. Franklin Resources Inc. boosted its stake in Bumble by 2.7% during the fourth quarter. Franklin Resources Inc. now owns 63,994 shares of the company's stock worth $521,000 after acquiring an additional 1,666 shares in the last quarter. Cerity Partners LLC boosted its stake in Bumble by 16.7% during the second quarter. Cerity Partners LLC now owns 19,962 shares of the company's stock worth $132,000 after acquiring an additional 2,857 shares in the last quarter. Mariner LLC boosted its stake in Bumble by 25.3% during the fourth quarter. Mariner LLC now owns 19,415 shares of the company's stock worth $158,000 after acquiring an additional 3,926 shares in the last quarter. Finally, Canada Pension Plan Investment Board boosted its stake in Bumble by 56.3% during the fourth quarter. Canada Pension Plan Investment Board now owns 11,100 shares of the company's stock worth $90,000 after acquiring an additional 4,000 shares in the last quarter. 94.85% of the stock is owned by institutional investors.

About Bumble

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.

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