Grindr (NYSE:GRND) Shares Gap Down After Earnings Miss

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) shares gapped down before the market opened on Friday following a weaker than expected 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 changing hands.

The company reported $0.08 earnings per share for the quarter, missing the consensus estimate of $0.10 by ($0.02). The business had revenue of $104.00 million during the quarter, compared to the consensus estimate 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 was up 26.6% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.13) earnings per share.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the stock. JMP Securities reduced their price target on shares of Grindr from $27.00 to $23.00 and set a "market outperform" rating on the stock in a report on Monday. Citizens Jmp started coverage on shares of Grindr in a research report on Monday, June 30th. They issued an "outperform" rating and a $27.00 price target for the company. Raymond James Financial decreased their target price on shares of Grindr from $26.00 to $20.00 and set an "outperform" rating for the company in a research report on Friday. The Goldman Sachs Group increased their price objective on shares of Grindr from $20.00 to $26.00 and gave the stock a "buy" rating in a research note on Monday, May 12th. Finally, Wall Street Zen lowered shares of Grindr from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Six investment analysts have rated the stock with a buy rating, According to data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus target price of $22.60.

Insider Transactions at Grindr

In other news, Director J Michael Gearon, Jr. sold 477,570 shares of the company's stock in a transaction that occurred on Monday, May 19th. The shares were sold at an average price of $23.64, for a total value of $11,289,754.80. Following the transaction, the director directly owned 5,500,000 shares in the company, valued at approximately $130,020,000. This represents a 7.99% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director James Fu Bin Lu sold 852,567 shares of the company's stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $23.93, for a total transaction of $20,401,928.31. Following the completion of the transaction, the director owned 26,588,867 shares in the company, valued at approximately $636,271,587.31. This represents a 3.11% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 3,376,922 shares of company stock worth $80,701,035 over the last 90 days. 67.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Grindr

Large investors have recently added to or reduced their stakes in the business. Wells Fargo & Company MN increased its position in shares of Grindr by 51.7% in the 4th quarter. Wells Fargo & Company MN now owns 11,472 shares of the company's stock valued at $205,000 after purchasing an additional 3,911 shares during the last quarter. Russell Investments Group Ltd. lifted its stake in shares of Grindr by 31.9% in the 4th quarter. Russell Investments Group Ltd. now owns 2,655 shares of the company's stock worth $47,000 after acquiring an additional 642 shares during the period. Legal & General Group Plc lifted its stake in shares of Grindr by 721.8% in the fourth quarter. Legal & General Group Plc now owns 22,673 shares of the company's stock valued at $404,000 after purchasing an additional 19,914 shares during the period. Barclays PLC lifted its stake in shares of Grindr by 30.4% in the fourth quarter. Barclays PLC now owns 94,647 shares of the company's stock valued at $1,689,000 after purchasing an additional 22,067 shares during the period. Finally, XTX Topco Ltd purchased a new position in Grindr during the 4th quarter valued at about $296,000. 7.22% of the stock is owned by hedge funds and other institutional investors.

Grindr Trading Down 3.5%

The firm has a market capitalization of $3.20 billion, a PE ratio of -37.22 and a beta of 0.25. The company has a quick ratio of 4.22, a current ratio of 4.22 and a debt-to-equity ratio of 0.85. The business's fifty day moving average price is $20.99 and its 200 day moving average price is $20.05.

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.