Bumble Inc. (NASDAQ:BMBL) Given Average Rating of "Reduce" by Brokerages

Key Points

• Analysts remain cautious on Bumble: Eighteen brokerages assign the stock an average “Reduce” rating, including two sells, 15 holds and one buy. The average 12-month price target is $3.87.
• Recent performance was weak: Bumble reported a quarterly loss of $0.84 per share, missing consensus by $1.09, while revenue declined 15.2% year over year to $210.53 million. Shares opened at $2.75, near their 12-month low of $2.54.
• Insider selling has been significant: Insiders sold nearly 30 million shares worth about $113.2 million over the past 90 days, although institutional investors and hedge funds collectively own 94.85% of the company.

Shares of Bumble Inc. (NASDAQ:BMBL - Get Free Report) have been assigned an average recommendation of "Reduce" from the eighteen ratings firms that are currently covering the company, Marketbeat.com reports. Two research analysts have rated the stock with a sell rating, fifteen have issued a hold rating and one has given a buy rating to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $3.8667.

BMBL has been the subject of several analyst reports. Citigroup cut their price target on Bumble from $3.90 to $3.60 and set a "neutral" rating for the company in a report on Tuesday, May 26th. Susquehanna decreased their price objective on Bumble from $3.50 to $3.00 and set a "neutral" rating on the stock in a report on Friday, August 7th. UBS Group lowered their price objective on Bumble from $4.50 to $3.00 and set a "neutral" rating for the company in a research report on Wednesday, August 12th. Wells Fargo & Company dropped their target price on Bumble from $5.00 to $4.00 and set an "equal weight" rating for the company in a research note on Friday, August 7th. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Bumble in a research report on Tuesday, August 4th.

Bumble Price Performance

Bumble stock opened at $2.75 on Thursday. Bumble has a 12-month low of $2.54 and a 12-month high of $7.32. The stock has a market capitalization of $362.92 million, a P/E ratio of -0.65, a P/E/G ratio of 0.15 and a beta of 1.87. The firm's 50-day moving average is $2.93 and its two-hundred day moving average is $3.20. 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 posted 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 during the quarter, compared to analyst estimates of $210.46 million. Bumble had a negative net margin of 58.99% and a positive return on equity of 35.88%. The business's quarterly revenue was down 15.2% on a year-over-year basis. During the same period in the prior year, the firm earned ($2.45) EPS. Equities analysts predict that Bumble will post 0.62 earnings per share for the current year.

Insider Buying and Selling

In other news, major shareholder - Nq L.L.C. Btoa sold 7,477,500 shares of the company's stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $3.78, for a total transaction of $28,264,950.00. Following the completion of the transaction, the insider owned 19,374 shares of the company's stock, valued at $73,233.72. This represents a 99.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Ann Mather sold 22,013 shares of the company's stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $2.79, for a total transaction of $61,416.27. Following the transaction, the director directly owned 117,853 shares of the company's stock, valued at approximately $328,809.87. This represents a 15.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 29,954,026 shares of company stock worth $113,182,633 over the last ninety days. Insiders own 15.35% of the company's stock.

Hedge Funds Weigh In On Bumble

Several institutional investors and hedge funds have recently bought and sold shares of BMBL. Saba Capital Management L.P. grew its stake in shares of Bumble by 52.6% during the 4th quarter. Saba Capital Management L.P. now owns 5,337,549 shares of the company's stock valued at $19,055,000 after buying an additional 1,838,923 shares during the period. Accel Growth Fund V Associates L.L.C. acquired a new position in Bumble in the second quarter valued at $16,174,499,000. Dimensional Fund Advisors LP boosted its holdings in Bumble by 10.6% in the third quarter. Dimensional Fund Advisors LP now owns 4,882,350 shares of the company's stock valued at $29,735,000 after acquiring an additional 466,646 shares during the last quarter. Renaissance Technologies LLC grew its position in Bumble by 48.6% during the first quarter. Renaissance Technologies LLC now owns 4,213,887 shares of the company's stock valued at $13,737,000 after acquiring an additional 1,378,487 shares during the period. Finally, Bank of America Corp DE grew its position in Bumble by 36.2% during the third quarter. Bank of America Corp DE now owns 2,528,128 shares of the company's stock valued at $15,396,000 after acquiring an additional 671,907 shares during the period. Institutional investors and hedge funds own 94.85% of the company's stock.

About Bumble

Bumble Inc operates a technology platform designed to facilitate social and professional connections through its suite of apps, most notably the flagship Bumble dating app. The company's core premise is to empower users—particularly women—to make the first move, helping to reshape traditional dating dynamics. In addition to its dating function, Bumble offers mode-switching features that allow users to find friends through “Bumble BFF” or pursue professional networking opportunities via “Bumble Bizz.”

Beyond the Bumble app, the company also owns and operates Badoo, a social discovery platform with a substantial global footprint, particularly in Europe and Latin America.

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