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

Key Points

• Grindr shares fell sharply after the company reported quarterly earnings of $0.10 per share, missing analyst expectations of $0.16. The stock opened at $15.80 versus a prior close of $17.15, despite revenue of $138.14 million exceeding estimates.
• Analyst sentiment remains generally positive, with five Buy ratings and one Hold rating producing a “Moderate Buy” consensus and an average price target of $19.20.
• Insiders have continued selling shares, including a 12,979-share sale by Zachary Katz for approximately $232,000; insiders collectively own 60.9% of Grindr, while institutional investors own 7.22%.

Grindr Inc. (NYSE:GRND - Get Free Report) gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $17.15, but opened at $15.80. Grindr shares last traded at $16.3580, with a volume of 327,446 shares changing hands.

The company reported $0.10 earnings per share for the quarter, missing analysts' consensus estimates of $0.16 by ($0.06). Grindr had a return on equity of 123.31% and a net margin of 19.85%.The business had revenue of $138.14 million for the quarter, compared to analysts' expectations of $132.50 million.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on GRND shares. Morgan Stanley upgraded Grindr from an "equal weight" rating to an "overweight" rating and raised their target price for the company from $15.00 to $18.00 in a research note on Wednesday, July 1st. Wall Street Zen cut shares of Grindr from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Raymond James Financial reaffirmed an "outperform" rating and set a $18.00 price objective on shares of Grindr in a research report on Friday, May 8th. Weiss Ratings raised shares of Grindr from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, May 11th. Finally, TD Cowen restated a "buy" rating on shares of Grindr in a research note on Monday, June 1st. Five analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $19.20.

Insider Buying and Selling

In other Grindr news, insider Zachary Katz sold 12,979 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $17.89, for a total value of $232,194.31. Following the sale, the insider owned 690,172 shares in the company, valued at approximately $12,347,177.08. This trade represents a 1.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 48,750 shares of company stock valued at $763,270. 60.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Grindr

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Grindr by 2.7% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 28,878 shares of the company's stock valued at $517,000 after acquiring an additional 762 shares during the last quarter. The Manufacturers Life Insurance Company grew its stake in shares of Grindr by 8.0% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 14,634 shares of the company's stock worth $332,000 after purchasing an additional 1,086 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its holdings in shares of Grindr by 69.9% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 2,983 shares of the company's stock worth $40,000 after purchasing an additional 1,227 shares in the last quarter. Vident Advisory LLC raised its holdings in shares of Grindr by 2.6% in the 4th quarter. Vident Advisory LLC now owns 50,616 shares of the company's stock worth $685,000 after purchasing an additional 1,271 shares in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its stake in Grindr by 1,473.4% during the second quarter. EverSource Wealth Advisors LLC now owns 1,479 shares of the company's stock valued at $34,000 after purchasing an additional 1,385 shares during the last quarter. 7.22% of the stock is owned by institutional investors.

Grindr Stock Down 5.1%

The company has a debt-to-equity ratio of 442.30, a current ratio of 1.32 and a quick ratio of 1.32. The stock has a market capitalization of $2.89 billion, a P/E ratio of 33.90 and a beta of 0.20. The stock's fifty day moving average is $14.46 and its two-hundred day moving average is $13.01.

Grindr Company Profile

Grindr, trading on the NYSE under the ticker symbol GRND, operates a global social networking and dating platform designed primarily for gay, bisexual, transgender and queer (GBTQ) individuals. The company’s core offering is a location-based mobile application that enables users to connect, chat and share content with others in their vicinity. Through its free tier and premium subscription services—known as Grindr XTRA and Grindr Unlimited—Grindr provides enhanced features such as ad-free browsing, advanced filters and unlimited profile views, catering to a broad spectrum of user needs.

Originally launched in 2009 by entrepreneur Joel Simkhai, Grindr was one of the first mobile apps to leverage geolocation technology for social networking.

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