Bumble (NASDAQ:BMBL) Hits New 1-Year High - Here's Why

Key Points

• Bumble shares reached a new 52-week high near $5.98, despite the stock’s negative earnings and net margin profile.
• Analyst sentiment remains cautious: 15 analysts rate the stock Hold, two rate it Sell, and one rates it Buy. The consensus rating is “Reduce,” with a target price of $4.12.
• Bumble’s latest quarter missed EPS expectations and revenue declined 15.2% year over year, while insiders sold approximately $83.4 million worth of shares over the past 90 days.

Bumble Inc. (NASDAQ:BMBL - Get Free Report) reached a new 52-week high on Tuesday. The stock traded as high as $5.98 and last traded at $5.9930, with a volume of 1,710,112 shares changing hands. The stock had previously closed at $5.97.

Analysts Set New Price Targets

A number of analysts have commented on the company. Wall Street Zen cut Bumble from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. UBS Group raised their price objective on Bumble from $3.00 to $6.05 and gave the stock a "neutral" rating in a research note on Wednesday, October 14th. Royal Bank Of Canada lowered their price objective on Bumble from $5.00 to $4.00 and set a "sector perform" rating on the stock in a research report on Friday, August 7th. Susquehanna cut their price objective on Bumble from $3.50 to $3.00 and set a "neutral" rating for the company in a research note on Friday, August 7th. Finally, Wells Fargo & Company reduced their target price on shares of Bumble from $5.00 to $4.00 and set an "equal weight" rating for the company in a report on Friday, August 7th. One equities research analyst has rated the stock with a Buy rating, fifteen have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Bumble currently has an average rating of "Reduce" and a consensus target price of $4.12.

Bumble Stock Performance

The company has a current ratio of 1.62, a quick ratio of 1.62 and a debt-to-equity ratio of 0.65. The business's 50 day moving average is $3.41 and its two-hundred day moving average is $3.30. The company has a market cap of $789.18 million, a PE ratio of -1.41 and a beta of 1.88.

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

Insiders Place Their Bets

In related news, major shareholder Holdings Gp Man Blackstone III sold 3,767,776 shares of the stock in a transaction dated Monday, September 28th. The stock was sold at an average price of $2.94, for a total transaction of $11,077,261.44. Following the completion of the sale, the insider owned 16,120 shares in the company, valued at approximately $47,392.80. This trade represents a 99.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, major shareholder Buzz Holdings L.P. Bcp sold 3,767,776 shares of the stock in a transaction dated Monday, September 28th. The stock was sold at an average price of $2.94, for a total value of $11,077,261.44. Following the sale, the insider owned 16,120 shares of the company's stock, valued at $47,392.80. This represents a 99.57% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 26,127,851 shares of company stock worth $83,447,304. 15.35% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Bumble

Institutional investors have recently added to or reduced their stakes in the stock. Accel Growth Fund V Associates L.L.C. purchased a new position in shares of Bumble in the second quarter worth $16,174,499. Renaissance Technologies LLC boosted its position 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 acquiring an additional 1,378,487 shares during the last quarter. Bank of America Corp DE grew its stake in Bumble by 16.7% during the first quarter. Bank of America Corp DE now owns 1,914,553 shares of the company's stock valued at $6,241,000 after acquiring an additional 274,548 shares in the last quarter. RBF Capital LLC grew its stake 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 acquiring an additional 449,866 shares in the last quarter. Finally, Pacer Advisors Inc. purchased 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 Company Profile

Bumble Inc is a technology company that operates online dating and social networking platforms. Its flagship Bumble app is designed to help people make romantic connections, while emphasizing user control and safety in the online dating experience.

The company also operates Badoo, a dating platform with an international user base, and offers services focused on friendship and social connections through Bumble-branded products. Its platforms provide features such as profile discovery, matching, messaging, and paid options intended to enhance users' experiences.

Founded in 2014 by Whitney Wolfe Herd, Bumble has expanded from its initial focus on dating to a broader range of personal-connection services.

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