Grindr (NYSE:GRND) Shares Gap Down Following Weak Earnings

Key Points

• Grindr's stock (NYSE:GRND) gapped down from $17.89 to $14.96 following an earnings report that missed expectations, with the company reporting $0.08 EPS compared to the consensus estimate of $0.10.
• Despite the earnings miss, Grindr's quarterly revenue rose by 26.6% year-over-year, totaling $104.00 million, slightly below analyst estimates of $104.40 million.
• Analysts remain optimistic, with multiple firms upgrading their ratings and setting target prices above the current trading price, indicating a consensus rating of "Buy" for Grindr's stock.

Grindr Inc. (NYSE:GRND - Get Free Report) gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $17.89, but opened at $14.96. Grindr shares last traded at $15.49, with a volume of 1,382,661 shares traded.

The company reported $0.08 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.10 by ($0.02). The company had revenue of $104.00 million for the quarter, compared to analyst estimates of $104.40 million. Grindr had a positive return on equity of 132.07% and a negative net margin of 14.41%. The firm's revenue for the quarter was up 26.6% on a year-over-year basis. During the same period last year, the firm earned ($0.13) earnings per share.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the company. The Goldman Sachs Group upped their price target on Grindr from $20.00 to $26.00 and gave the stock a "buy" rating in a research note on Monday, May 12th. JMP Securities upped their price target on Grindr from $24.00 to $27.00 and gave the stock a "market outperform" rating in a research note on Monday, June 30th. Wall Street Zen downgraded Grindr from a "strong-buy" rating to a "buy" rating in a research note on Saturday. Raymond James Financial decreased their price target on Grindr from $26.00 to $20.00 and set an "outperform" rating for the company in a research note on Friday. Finally, Citizens Jmp assumed coverage on Grindr in a research note on Monday, June 30th. They set an "outperform" rating and a $27.00 price target for the company. Six investment analysts have rated the stock with a buy rating, Based on data from MarketBeat, the company currently has an average rating of "Buy" and an average price target of $23.40.

Insider Buying and Selling at Grindr

In other Grindr news, Director Daniel Brooks Baer sold 2,435 shares of the stock in a transaction on Thursday, May 29th. The stock was sold at an average price of $24.00, for a total value of $58,440.00. Following the transaction, the director directly owned 24,693 shares in the company, valued at approximately $592,632. This trade represents a 8.98% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Zachary Katz sold 14,693 shares of the stock in a transaction on Thursday, July 24th. The shares were sold at an average price of $19.25, for a total value of $282,840.25. Following the completion of the transaction, the insider owned 595,112 shares in the company, valued at $11,455,906. The trade was a 2.41% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 4,641,251 shares of company stock worth $110,831,024 over the last 90 days. Company insiders own 67.70% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in GRND. Nuveen LLC acquired a new stake in Grindr during the 1st quarter worth $20,049,000. Adage Capital Partners GP L.L.C. acquired a new stake in Grindr during the 1st quarter worth $14,320,000. Bwcp LP acquired a new stake in Grindr during the 4th quarter worth $12,088,000. Marshall Wace LLP raised its stake in Grindr by 85.2% during the 4th quarter. Marshall Wace LLP now owns 1,117,053 shares of the company's stock worth $19,928,000 after buying an additional 513,770 shares during the period. Finally, Woodline Partners LP acquired a new stake in shares of Grindr in the 4th quarter valued at about $7,436,000. Institutional investors and hedge funds own 7.22% of the company's stock.

Grindr Price Performance

The company has a 50 day simple moving average of $21.14 and a 200-day simple moving average of $20.04. The stock has a market cap of $3.08 billion, a price-to-earnings ratio of -35.73 and a beta of 0.25. The company has a current ratio of 4.22, a quick ratio of 4.22 and a debt-to-equity ratio of 0.85.

About Grindr

Grindr Inc operates social network and dating application for the lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities worldwide. Its platform enables LGBTQ people to find and engage with each other, share content and experiences, and express themselves. The company offers ad-supported service and a premium subscription version.