Bumble (NASDAQ:BMBL) Shares Up 9.7% - Here's What Happened

Key Points

• Bumble Inc. shares rose by 9.7% to a last traded price of $7.16, despite a 59% decrease in trading volume compared to its average.
• Analysts are divided on Bumble's stock, with recent price targets ranging from $4.00 to $9.00, and a consensus rating of "Hold".
• In the latest earnings report, Bumble reported earnings per share of $0.64, surpassing estimates, although revenue fell 7.6% compared to the previous year.

Shares of Bumble Inc. (NASDAQ:BMBL - Get Free Report) rose 9.7% during mid-day trading on Wednesday . The stock traded as high as $7.09 and last traded at $7.16. Approximately 1,333,547 shares traded hands during trading, a decline of 59% from the average daily volume of 3,273,264 shares. The stock had previously closed at $6.52.

Wall Street Analyst Weigh In

Several analysts have recently commented on BMBL shares. Susquehanna restated a "neutral" rating and issued a $7.00 target price (up previously from $5.00) on shares of Bumble in a research note on Monday, August 11th. The Goldman Sachs Group upped their price objective on Bumble from $8.00 to $9.00 and gave the stock a "buy" rating in a report on Thursday, May 8th. Wells Fargo & Company restated a "positive" rating on shares of Bumble in a report on Friday, June 27th. JPMorgan Chase & Co. reissued an "underweight" rating and set a $5.00 target price on shares of Bumble in a research report on Tuesday, June 3rd. Finally, Morgan Stanley raised their target price on Bumble from $5.50 to $6.00 and gave the company an "equal weight" rating in a research note on Friday, August 8th. Two research analysts have rated the stock with a sell rating, ten have issued a hold rating and three have issued a buy rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $6.63.

Bumble Stock Performance

The company has a current ratio of 3.30, a quick ratio of 3.30 and a debt-to-equity ratio of 1.00. The stock has a market cap of $641.95 million, a price-to-earnings ratio of -1.26, a price-to-earnings-growth ratio of 0.88 and a beta of 1.96. The stock's 50-day simple moving average is $6.57 and its 200-day simple moving average is $5.78.

Bumble (NASDAQ:BMBL - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The company reported $0.64 earnings per share for the quarter, topping 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 business had revenue of $248.23 million during the quarter, compared to the consensus estimate of $243.72 million. During the same period in the prior year, the company earned $0.22 EPS. Bumble's revenue for the quarter was down 7.6% on a year-over-year basis. Analysts forecast that Bumble Inc. will post 4.19 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, major shareholder Holdings Gp Man Blackstone III sold 16,689,884 shares of the business's stock in a transaction 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 transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, major shareholder Bx Buzz Ml-1 Gp Llc sold 16,689,884 shares of the business's stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $6.26, for a total transaction of $104,478,673.84. The disclosure for this sale can be found here. In 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 made changes to their positions in the business. Pale Fire Capital SE bought a new stake in shares of Bumble during the first quarter worth about $43,000. Vident Advisory LLC bought a new stake in Bumble in the 1st quarter worth about $48,000. Teacher Retirement System of Texas bought a new stake in Bumble in the 1st quarter worth about $49,000. Tyche Wealth Partners LLC bought a new stake in Bumble in the 1st quarter worth about $52,000. Finally, Kestra Private Wealth Services LLC purchased a new stake in shares of Bumble during the first quarter valued at approximately $54,000. 94.85% of the stock is owned by institutional investors.

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.