Bumble (NASDAQ:BMBL) Trading 9.7% Higher - Here's Why

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.

Bumble Inc. (NASDAQ:BMBL - Get Free Report)'s stock price 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 were traded during mid-day 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

BMBL has been the subject of a number of recent analyst reports. Citigroup raised their price objective on Bumble from $4.80 to $7.00 and gave the stock a "neutral" rating in a research report on Friday, June 27th. Zacks Research raised Bumble to a "hold" rating in a research report on Friday, August 8th. Susquehanna reiterated a "neutral" rating and issued a $7.00 target price (up from $5.00) on shares of Bumble in a research note on Monday, August 11th. Royal Bank Of Canada lifted their price target on Bumble from $7.00 to $7.50 and gave the company an "outperform" rating in a research note on Thursday, August 7th. Finally, The Goldman Sachs Group boosted their price target on Bumble from $8.00 to $9.00 and gave the stock a "buy" rating in a report on Thursday, May 8th. Two analysts have rated the stock with a sell rating, eleven have assigned a hold rating and three have issued a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $6.69.

Bumble Stock Up 3.6%

The company has a quick ratio of 2.83, a current ratio of 3.30 and a debt-to-equity ratio of 1.00. The business has a fifty day simple moving average of $6.57 and a two-hundred day simple moving average of $5.82. The company has a market capitalization of $654.22 million, a price-to-earnings ratio of -1.29, a P/E/G ratio of 0.85 and a beta of 1.96.

Bumble (NASDAQ:BMBL - Get Free Report) last posted 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 negative net margin of 82.41% and a positive return on equity of 10.35%. The firm had revenue of $248.23 million during the quarter, compared to analysts' expectations of $243.72 million. During the same quarter in the previous year, the company posted $0.22 EPS. Bumble's revenue was down 7.6% on a year-over-year basis. Equities analysts expect that Bumble Inc. will post 4.19 EPS for the current year.

Insider Transactions at Bumble

In other news, major shareholder - Nq L.L.C. Btoa sold 16,689,884 shares of the company's 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 sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Whitney Wolfe Herd sold 1,365,116 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 transaction of $8,545,626.16. Following the completion of the transaction, the chief executive officer directly owned 1,598,258 shares in the company, valued at approximately $10,005,095.08. This represents a 46.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 68,124,652 shares of company stock worth $426,460,322. Company insiders own 15.84% of the company's stock.

Institutional Trading of Bumble

Several large investors have recently made changes to their positions in BMBL. Evergreen Capital Management LLC acquired a new position in shares of Bumble during the second quarter worth $116,000. Tower Research Capital LLC TRC lifted its holdings in shares of Bumble by 182.7% during the second quarter. Tower Research Capital LLC TRC now owns 11,117 shares of the company's stock worth $73,000 after purchasing an additional 7,185 shares during the period. Corient Private Wealth LLC lifted its holdings in shares of Bumble by 1,157.3% during the second quarter. Corient Private Wealth LLC now owns 141,045 shares of the company's stock worth $929,000 after purchasing an additional 129,827 shares during the period. Captrust Financial Advisors acquired a new position in shares of Bumble during the second quarter worth $84,000. Finally, Cubist Systematic Strategies LLC lifted its holdings in shares of Bumble by 3,714.4% during the second quarter. Cubist Systematic Strategies LLC now owns 923,093 shares of the company's stock worth $6,083,000 after purchasing an additional 898,893 shares during the period. Institutional investors and hedge funds own 94.85% of the company's stock.

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.