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

Key Points

• Bumble Inc.'s shares gapped down from $6.04 to $5.79 before opening, with the stock last trading at $5.84, indicating potential investor concern.
• Recent analyst ratings show mixed sentiments, with two Buy ratings, ten Hold ratings, and three Sell ratings given to the stock, while the consensus price target is $6.46.
• Insiders have sold over 68 million shares of Bumble stock valued at approximately $426 million in the last three months, raising questions about confidence in the company's future performance.

Bumble Inc. (NASDAQ:BMBL - Get Free Report)'s share price gapped down before the market opened on Friday . The stock had previously closed at $6.04, but opened at $5.79. Bumble shares last traded at $5.84, with a volume of 521,983 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. Wells Fargo & Company reaffirmed a "positive" rating on shares of Bumble in a research report on Friday, June 27th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Bumble in a research report on Saturday, September 27th. Morgan Stanley raised their target price on Bumble from $5.50 to $6.00 and gave the stock an "equal weight" rating in a research report on Friday, August 8th. Zacks Research raised Bumble to a "hold" rating in a research report on Friday, August 8th. Finally, The Goldman Sachs Group reissued a "neutral" rating and issued a $7.00 target price (down from $8.00) on shares of Bumble in a research report on Friday. Two equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $6.46.

Bumble Price Performance

The firm has a 50 day moving average price of $6.72 and a 200 day moving average price of $5.82. The stock has a market cap of $609.50 million, a P/E ratio of -1.20, a P/E/G ratio of 0.84 and a beta of 1.94. The company has a quick ratio of 3.30, a current ratio of 3.30 and a debt-to-equity ratio of 1.00.

Bumble (NASDAQ:BMBL - Get Free Report) last issued its earnings results 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. The company had revenue of $248.23 million for the quarter, compared to the consensus estimate of $243.72 million. Bumble had a positive return on equity of 10.35% and a negative net margin of 82.41%.The firm's quarterly revenue was down 7.6% on a year-over-year basis. During the same quarter last year, the company earned $0.22 EPS. On average, analysts forecast that Bumble Inc. will post 4.19 EPS for the current fiscal year.

Insider Activity at Bumble

In other Bumble news, major shareholder Bx Buzz Ml-1 Gp Llc sold 16,689,884 shares of the firm's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $6.26, for a total transaction of $104,478,673.84. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, major shareholder - Nq L.L.C. Btoa sold 16,689,884 shares of the firm's stock in a transaction that occurred on 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. Insiders have sold 68,124,652 shares of company stock worth $426,460,322 in the last three months. Corporate insiders own 15.84% of the company's stock.

Hedge Funds Weigh In On Bumble

Several institutional investors have recently added to or reduced their stakes in BMBL. Two Sigma Investments LP purchased a new position in Bumble during the 4th quarter valued at approximately $476,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Bumble by 26.2% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 231,876 shares of the company's stock valued at $1,887,000 after buying an additional 48,207 shares in the last quarter. Patriot Financial Group Insurance Agency LLC purchased a new position in Bumble during the 1st quarter valued at approximately $396,000. Hennessy Advisors Inc. purchased a new position in Bumble during the 1st quarter valued at approximately $72,000. Finally, Tyche Wealth Partners LLC purchased a new position in Bumble during the 1st quarter valued at approximately $52,000. Hedge funds and other institutional investors own 94.85% of the company's stock.

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.

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