Grindr (NYSE:GRND) Shares Gap Down - Should You Sell?

Key Points

• Grindr shares opened lower, falling from a previous close of $15.66 to $15.34 before trading around $15.48. The stock remains above its 200-day moving average but below the $20 consensus analyst price target.
• Analyst sentiment remains broadly positive, with five Buy ratings and one Hold rating producing a consensus “Moderate Buy” recommendation. Morgan Stanley, Raymond James and TD Cowen maintained favorable views, while Wall Street Zen downgraded the stock to Hold.
• Grindr exceeded quarterly revenue expectations with $138.14 million, but earnings per share of $0.10 missed the $0.16 consensus estimate. Insiders have sold 48,750 shares over the past three months, while insiders retain a 60.90% ownership stake.

Grindr Inc. (NYSE:GRND - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $15.66, but opened at $15.34. Grindr shares last traded at $15.48, with a volume of 38,109 shares changing hands.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on GRND. TD Cowen reiterated a "buy" rating on shares of Grindr in a report on Monday, June 1st. Weiss Ratings restated a "hold (c)" rating on shares of Grindr in a report on Friday, August 7th. Morgan Stanley reissued an "overweight" rating and set a $20.00 price objective on shares of Grindr in a research report on Friday, August 7th. Wall Street Zen downgraded Grindr from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Finally, Raymond James Financial reiterated an "outperform" rating on shares of Grindr in a report on Friday, August 7th. Five equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $20.00.

Grindr Stock Up 0.1%

The company has a debt-to-equity ratio of 442.30, a quick ratio of 1.10 and a current ratio of 1.10. The stock's 50 day simple moving average is $15.36 and its 200 day simple moving average is $13.30. The firm has a market cap of $2.73 billion, a P/E ratio of 31.36 and a beta of 0.20.

Grindr (NYSE:GRND - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.10 earnings per share for the quarter, missing analysts' consensus estimates of $0.16 by ($0.06). Grindr had a net margin of 18.75% and a return on equity of 357.13%. The business had revenue of $138.14 million during the quarter, compared to the consensus estimate of $132.50 million. Research analysts anticipate that Grindr Inc. will post 0.51 EPS for the current year.

Insider Buying and Selling

In other news, insider Zachary Katz sold 12,979 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $17.89, for a total value of $232,194.31. Following the completion of the sale, the insider directly owned 690,172 shares of the company's stock, valued at $12,347,177.08. This represents a 1.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 48,750 shares of company stock worth $763,270. Insiders own 60.90% of the company's stock.

Institutional Investors Weigh In On Grindr

Several institutional investors have recently bought and sold shares of the stock. Susquehanna Fundamental Investments LLC purchased a new stake in Grindr in the 2nd quarter valued at $159,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Grindr by 14.4% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 89,720 shares of the company's stock worth $1,289,000 after acquiring an additional 11,296 shares during the last quarter. Bank of America Corp DE bought a new stake in shares of Grindr in the 2nd quarter worth $4,758,000. Jupiter Topco LLC bought a new stake in shares of Grindr in the 2nd quarter worth $183,000. Finally, PDT Partners LLC purchased a new stake in shares of Grindr in the second quarter valued at about $460,000. Institutional investors own 7.22% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source