Bumble Inc. (BMBL) - What Are Researchers Saying About This Stock?

Key Points

• Bumble has a consensus “Reduce” rating: 15 analysts recommend holding, two recommend selling and one recommends buying, with an average 12-month price target of $4.12.
• Ithaca’s proposed acquisition would take Bumble private for $6.05 per Class A share, an approximately 138% premium to the unaffected price. Shares are trading near the offer value, limiting further upside unless the deal closes, and the transaction remains subject to shareholder approval and other conditions.
• Bumble continues to face operational challenges, including a 15.2% year-over-year revenue decline, a quarterly adjusted loss that missed estimates and a negative net margin. Securities-law investigations and substantial insider selling could add uncertainty around the proposed merger.

Bumble Inc. (NASDAQ:BMBL - Get Free Report) has been assigned a consensus recommendation of "Reduce" from the eighteen brokerages that are currently covering the stock, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, fifteen have issued a hold recommendation and one has issued a buy recommendation on the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $4.12.

BMBL has been the subject of several analyst reports. The Goldman Sachs Group reduced their price target on shares of Bumble from $5.00 to $3.50 and set a "neutral" rating for the company in a research report on Thursday, August 6th. Wells Fargo & Company decreased their price objective on shares of Bumble from $5.00 to $4.00 and set an "equal weight" rating for the company in a report on Friday, August 7th. Weiss Ratings raised Bumble from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Monday. Raymond James Financial reiterated a "market perform" rating on shares of Bumble in a research note on Thursday, June 25th. Finally, Susquehanna cut their target price on Bumble from $3.50 to $3.00 and set a "neutral" rating on the stock in a research note on Friday, August 7th.

Insiders Place Their Bets

In related news, major shareholder Buzz Holdings L.P. Bcp sold 3,767,776 shares of the stock in a transaction on Monday, September 28th. The stock was sold at an average price of $2.94, for a total transaction of $11,077,261.44. Following the sale, the insider directly owned 16,120 shares of the company's stock, valued at $47,392.80. This trade represents a 99.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, major shareholder - Nq L.L.C. Btoa sold 3,767,776 shares of the stock in a transaction on Monday, September 28th. The shares were sold at an average price of $2.94, for a total value of $11,077,261.44. Following the sale, the insider directly owned 16,120 shares in the company, valued at $47,392.80. This trade represents a 99.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 26,127,851 shares of company stock worth $83,447,304 over the last three months. Company insiders own 15.35% of the company's stock.

Hedge Funds Weigh In On Bumble

Hedge funds have recently bought and sold shares of the business. HB Wealth Management LLC purchased a new stake in shares of Bumble during the 1st quarter valued at about $34,000. L2 Asset Management LLC purchased a new position in shares of Bumble during the second quarter valued at approximately $42,000. R Squared Ltd purchased a new position in shares of Bumble during the first quarter valued at approximately $48,000. Abel Hall LLC raised its holdings in shares of Bumble by 49.4% during the first quarter. Abel Hall LLC now owns 17,530 shares of the company's stock valued at $57,000 after purchasing an additional 5,793 shares during the last quarter. Finally, Chicago Partners Investment Group LLC bought a new position in Bumble during the first quarter valued at approximately $63,000. Hedge funds and other institutional investors own 94.85% of the company's stock.

Bumble News Summary

Here are the key news stories impacting Bumble this week:

• Positive Sentiment: Ithaca will pay Bumble shareholders $6.05 per Class A share, representing an approximately 138% premium to Bumble’s unaffected October 9 closing price. The defined cash consideration is the primary reason for the sharp rally in BMBL. Bumble acquisition report
• Positive Sentiment: The deal would take Bumble private and gives investors an exit at a significant premium amid the company’s difficult turnaround, including declining revenue and paying users. Reports characterize the transaction as a response to the broader reset in the online-dating industry. Seeking Alpha acquisition report
• Neutral Sentiment: BMBL is trading near the proposed $6.05 consideration, leaving limited additional upside unless the deal is completed. The merger remains subject to shareholder approval and customary closing conditions. UBS raised its price target to $6.05 while maintaining a neutral rating. Why BMBL stock is surging
• Negative Sentiment: Several securities law firms announced investigations into whether the $6.05 price and sale process fairly value Bumble shareholders. The notices are typically investor solicitations and do not establish wrongdoing, but potential litigation could create uncertainty or delay the transaction. Bumble merger investigation
• Negative Sentiment: Affiliated major shareholders sold 2.76 million Bumble shares for approximately $9.8 million at an average price of $3.54, reducing their ownership by 99.51%. The sale predates the acquisition announcement but may be viewed as an insider-selling overhang. Bumble insider selling report

Bumble Stock Performance

Shares of Bumble stock opened at $5.93 on Friday. Bumble has a 1 year low of $2.44 and a 1 year high of $5.98. The firm's 50-day moving average is $2.97 and its 200 day moving average is $3.16. The stock has a market cap of $782.58 million, a price-to-earnings ratio of -1.40 and a beta of 1.88. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.62 and a quick ratio of 1.62.

Bumble (NASDAQ:BMBL - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported ($0.84) earnings per share for the quarter, missing analysts' consensus estimates of $0.25 by ($1.09). The firm had revenue of $210.53 million for the quarter, compared to the consensus estimate of $210.46 million. Bumble had a negative net margin of 58.99% and a positive return on equity of 35.88%. The firm's revenue for the quarter was down 15.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($2.45) earnings per share. Sell-side analysts anticipate that Bumble will post -0.08 EPS for the current fiscal year.

About Bumble

Bumble Inc is a technology company that operates a portfolio of online dating and social networking platforms. Its flagship Bumble app is designed to help people make meaningful connections, including romantic relationships, friendships and professional contacts. A distinctive feature of Bumble's dating service has historically given women greater control over initiating conversations in heterosexual matches.

The company also operates Badoo, an online dating platform with a significant international presence, and Bumble For Friends, a service focused on helping users build platonic friendships.

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