Insider Selling: Bumble (NASDAQ:BMBL) Major Shareholder Sells $9,782,825.40 in Stock

Key Points

• Bumble major shareholder Bx Buzz ML-1 GP sold 2.76 million shares for approximately $9.78 million, reducing its ownership by 99.51% to just 13,733 shares.
• Ithaca agreed to acquire Bumble for $6.05 per Class A share, a roughly 138% premium to the unaffected price, though the deal remains subject to shareholder approval and customary closing conditions.
• Bumble’s fundamentals remain challenging: quarterly revenue fell 15.2% year over year, the company missed earnings expectations, and analysts’ consensus rating is “Reduce” with a $4.12 price target.

Bumble Inc. (NASDAQ:BMBL - Get Free Report) major shareholder Bx Buzz Ml-1 Gp Llc sold 2,763,510 shares of Bumble stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $3.54, for a total transaction of $9,782,825.40. Following the transaction, the insider directly owned 13,733 shares in the company, valued at approximately $48,614.82. The trade was a 99.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Large shareholders that own more than 10% of a company's shares are required to disclose their sales and purchases with the SEC.

Bx Buzz Ml-1 Gp Llc also recently made the following trade(s):

• On Monday, September 28th, Bx Buzz Ml-1 Gp Llc sold 3,767,776 shares of Bumble stock. The shares were sold at an average price of $2.94, for a total value of $11,077,261.44.

Bumble Stock Up 0.3%

Shares of NASDAQ BMBL traded up $0.02 during mid-day trading on Wednesday, reaching $5.97. 39,295,089 shares of the company were exchanged, compared to its average volume of 9,838,894. The stock has a market cap of $787.86 million, a price-to-earnings ratio of 2.69 and a beta of 1.88. The company has a quick ratio of 1.62, a current ratio of 1.62 and a debt-to-equity ratio of 0.65. The firm has a 50-day moving average of $2.85 and a 200 day moving average of $3.13. Bumble Inc. has a 1 year low of $2.44 and a 1 year high of $5.98.

Bumble (NASDAQ:BMBL - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.84) EPS for the quarter, missing the consensus estimate of $0.25 by ($1.09). Bumble had a negative net margin of 58.99% and a positive return on equity of 35.88%. The firm had revenue of $210.53 million for the quarter, compared to analysts' expectations of $210.46 million. During the same period in the previous year, the company posted ($2.45) earnings per share. The business's quarterly revenue was down 15.2% compared to the same quarter last year. On average, research analysts expect that Bumble Inc. will post -0.08 earnings per share for the current year.

Hedge Funds Weigh In On Bumble

A number of institutional investors have recently bought and sold shares of BMBL. Accel Growth Fund V Associates L.L.C. acquired a new stake in shares of Bumble in the second quarter worth $16,174,499. Renaissance Technologies LLC raised its holdings in shares of Bumble by 48.6% during the first quarter. Renaissance Technologies LLC now owns 4,213,887 shares of the company's stock worth $13,737,000 after purchasing an additional 1,378,487 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of Bumble by 16.7% during the first quarter. Bank of America Corp DE now owns 1,914,553 shares of the company's stock worth $6,241,000 after purchasing an additional 274,548 shares during the last quarter. RBF Capital LLC lifted its position in Bumble by 86.9% during the first quarter. RBF Capital LLC now owns 967,372 shares of the company's stock valued at $3,154,000 after purchasing an additional 449,866 shares during the period. Finally, Pacer Advisors Inc. acquired a new position in Bumble during the first quarter valued at $2,039,000. 94.85% of the stock is owned by hedge funds and other institutional investors.

Bumble News Roundup

Here are the key news stories impacting Bumble this week:

• Positive Sentiment: Ithaca will pay Bumble shareholders $6.05 per Class A share, representing an approximately 138% premium to Bumble’s unaffected October 9 closing price. The transaction provides a defined cash-exit value and would take Bumble private. Bumble acquisition announcement
• Positive Sentiment: The announced premium has driven a major repricing in BMBL, with reports describing the stock as up roughly 138% for the week. The deal also reduces investor exposure to Bumble’s ongoing turnaround challenges, including weak user engagement and declining paying users. Reuters Bumble take-private report
• Neutral Sentiment: BMBL is trading close to the proposed $6.05 consideration, leaving only a relatively small spread for investors. Further upside may therefore depend on deal completion rather than Bumble’s standalone operating performance. The transaction remains subject to customary closing conditions and shareholder approval. Yahoo Finance acquisition report
• Negative Sentiment: Several law firms, including Bleichmar Fonti & Auld, Kahn Swick & Foti, and Ademi, have announced investigations into whether the $6.05 price and sale process fairly value Bumble and adequately protect shareholders. These announcements are typically investor solicitations and do not establish wrongdoing, but they could create litigation, delay, or additional uncertainty around the merger. BFA Law Bumble investigation

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on BMBL shares. Raymond James Financial reaffirmed a "market perform" rating on shares of Bumble in a research report on Thursday, June 25th. Wall Street Zen downgraded Bumble from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. The Goldman Sachs Group dropped their price target on Bumble from $5.00 to $3.50 and set a "neutral" rating on the stock in a research note on Thursday, August 6th. Weiss Ratings upgraded shares of Bumble from a "sell (e+)" rating to a "sell (d-)" rating in a report on Monday. Finally, Wells Fargo & Company cut their price objective on shares of Bumble from $5.00 to $4.00 and set an "equal weight" rating on the stock in a report on Friday, August 7th. One investment analyst has rated the stock with a Buy rating, fifteen have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Bumble presently has a consensus rating of "Reduce" and a consensus price target of $4.12.

Bumble Company Profile

Bumble Inc is a technology company that operates a portfolio of online dating and social networking platforms. Its flagship Bumble app is designed to help people make meaningful connections, including romantic relationships, friendships and professional contacts. A distinctive feature of Bumble's dating service has historically given women greater control over initiating conversations in heterosexual matches.

The company also operates Badoo, an online dating platform with a significant international presence, and Bumble For Friends, a service focused on helping users build platonic friendships.

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