Grindr (NYSE:GRND) Shares Gap Up Following Earnings Beat

Key Points

• Quarterly beat: Grindr reported $0.14 EPS vs. $0.13 expected and revenue of $129.94M vs. $119.42M, sending the stock to a gap-up open ($13.81 → $14.76) and a roughly 4.4% intraday rise.
• Analyst views remain mixed—Goldman Sachs cut its target to $17 (buy), Morgan Stanley initiated at $14 (equal weight) and TD Cowen lowered to $22 (buy)—with a consensus rating of Moderate Buy and an average target of $18.80.
• Institutional interest is rising—Vanguard, Norges Bank, Quinn and Dimensional have built or increased positions—though institutions own just 7.22% of the stock; Grindr’s market cap is about $2.67B with a PE of 33.54.

Grindr Inc. (NYSE:GRND - Get Free Report) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $13.81, but opened at $14.76. Grindr shares last traded at $14.4150, with a volume of 1,429,999 shares changing hands.

The company reported $0.14 EPS for the quarter, beating the consensus estimate of $0.13 by $0.01. The company had revenue of $129.94 million for the quarter, compared to analyst estimates of $119.42 million. Grindr had a net margin of 21.54% and a return on equity of 60.60%.

Analysts Set New Price Targets

Several analysts have recently issued reports on GRND shares. The Goldman Sachs Group dropped their target price on shares of Grindr from $20.00 to $17.00 and set a "buy" rating on the stock in a research report on Monday, March 2nd. Morgan Stanley started coverage on shares of Grindr in a research report on Tuesday, February 24th. They issued an "equal weight" rating and a $14.00 target price on the stock. Weiss Ratings raised Grindr from a "sell (d-)" rating to a "hold (c-)" rating in a research note on Wednesday, March 4th. Finally, TD Cowen lowered their price target on Grindr from $26.00 to $22.00 and set a "buy" rating on the stock in a research note on Tuesday, February 24th. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, Grindr presently has an average rating of "Moderate Buy" and an average target price of $18.80.

Hedge Funds Weigh In On Grindr

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. boosted its position in Grindr by 0.4% during the third quarter. Vanguard Group Inc. now owns 2,292,256 shares of the company's stock worth $34,430,000 after acquiring an additional 9,952 shares during the last quarter. Norges Bank purchased a new position in Grindr during the fourth quarter worth about $27,441,000. Quinn Opportunity Partners LLC purchased a new position in Grindr during the fourth quarter worth about $20,565,000. Dimensional Fund Advisors LP raised its stake in Grindr by 77.6% during the first quarter. Dimensional Fund Advisors LP now owns 1,396,122 shares of the company's stock worth $16,881,000 after purchasing an additional 610,111 shares during the period. Finally, Jacobs Levy Equity Management Inc. raised its stake in Grindr by 327.5% during the third quarter. Jacobs Levy Equity Management Inc. now owns 1,381,211 shares of the company's stock worth $20,746,000 after purchasing an additional 1,058,084 shares during the period. 7.22% of the stock is currently owned by institutional investors and hedge funds.

Grindr Stock Up 4.4%

The company has a debt-to-equity ratio of 8.00, a current ratio of 1.96 and a quick ratio of 1.96. The business's 50 day simple moving average is $12.47 and its 200 day simple moving average is $12.68. The company has a market capitalization of $2.67 billion, a PE ratio of 33.54 and a beta of 0.27.

About Grindr

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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