Bumble (NASDAQ:BMBL) Hits New 12-Month High - What's Next?

Key Points

• Ithaca will acquire Bumble for approximately $1.3 billion in cash, with shareholders receiving $6.05 per Class A share—about a 138% premium to the unaffected share price. The deal drove shares to a new 52-week high near the offer price.
• The acquisition comes as Bumble faces declining paying users, falling revenue and ongoing losses; latest-quarter revenue fell 15.2% year over year and the company missed earnings expectations.
• Analyst sentiment remains cautious, with Bumble carrying an average “Reduce” rating and a consensus price target of $3.87, well below the $6.05 takeover offer.

Bumble Inc. (NASDAQ:BMBL - Get Free Report) shares reached a new 52-week high on Tuesday. The company traded as high as $5.96 and last traded at $5.9650, with a volume of 12,217,681 shares trading hands. The stock had previously closed at $3.80.

More Bumble News

Here are the key news stories impacting Bumble this week:

• Positive Sentiment: Takeover at a substantial premium: Ithaca will acquire Bumble in an all-cash transaction valued at approximately $1.3 billion. Shareholders will receive $6.05 per Class A share, representing roughly a 138% premium to Bumble’s unaffected October 9 closing price. The premium is the primary catalyst for the stock’s upward move. Bumble acquisition announcement
• Positive Sentiment: Potentially limits exposure to a challenged public-market turnaround: The deal allows investors to monetize their holdings while Ithaca takes responsibility for Bumble’s efforts to address changing Gen Z dating behavior and declining paying-user trends. Reuters report on Bumble going private
• Neutral Sentiment: Trading was temporarily halted: BMBL trading was paused for news pending, reflecting the material nature of the acquisition announcement. Once resumed, the share price will likely trade in relation to the $6.05 offer price rather than solely on Bumble’s operating results.
• Negative Sentiment: Underlying business remains pressured: Bumble has faced declining paying users, falling revenue, and losses. Its latest reported quarter showed revenue down 15.2% year over year and an adjusted earnings shortfall versus analyst expectations. These challenges explain why the company is being acquired at a valuation far below its 2021 public-market peak. New York Post report on Bumble take-private talks

Wall Street Analyst Weigh In

Several analysts have weighed in on BMBL shares. UBS Group cut their target price on Bumble from $4.50 to $3.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 12th. Weiss Ratings raised shares of Bumble from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Monday. Wall Street Zen downgraded Bumble from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Susquehanna dropped their price objective on Bumble from $3.50 to $3.00 and set a "neutral" rating on the stock in a research note on Friday, August 7th. Finally, Royal Bank Of Canada lowered their target price on Bumble from $5.00 to $4.00 and set a "sector perform" rating on the stock in a report on Friday, August 7th. One 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's stock. According to data from MarketBeat.com, Bumble has an average rating of "Reduce" and a consensus price target of $3.87.

Bumble Stock Up 56.7%

The firm has a market cap of $785.88 million, a P/E ratio of -1.41 and a beta of 1.88. The business's fifty day moving average price is $2.79 and its two-hundred day moving average price is $3.11. The company has a current ratio of 1.62, a quick ratio of 1.62 and a debt-to-equity ratio of 0.65.

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

Insider Activity at Bumble

In other news, major shareholder - Nq L.L.C. Btoa sold 3,767,776 shares of the company's stock in a transaction dated Monday, September 28th. The shares were sold at an average price of $2.94, for a total transaction of $11,077,261.44. Following the completion of the transaction, the insider owned 16,120 shares of the company's stock, valued at approximately $47,392.80. This represents a 99.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Bx Buzz Ml-1 Gp Llc sold 3,767,776 shares of Bumble stock in a transaction that occurred on 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 directly owned 16,120 shares in the company, valued at $47,392.80. The trade was a 99.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 15,073,811 shares of company stock worth $44,316,003. 15.35% of the stock is owned by insiders.

Hedge Funds Weigh In On Bumble

Several institutional investors have recently bought and sold shares of BMBL. Principal Financial Group Inc. increased its stake in shares of Bumble by 314.5% in the 1st quarter. Principal Financial Group Inc. now owns 609,226 shares of the company's stock valued at $1,986,000 after acquiring an additional 462,251 shares during the last quarter. RBF Capital LLC increased its position in shares of Bumble by 86.9% in the 1st quarter. RBF Capital LLC now owns 967,372 shares of the company's stock valued at $3,154,000 after buying an additional 449,866 shares in the last quarter. Renaissance Technologies LLC lifted its holdings in 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 in the last quarter. Pacer Advisors Inc. acquired a new position in Bumble in the first quarter valued at about $2,039,000. Finally, Accel Growth Fund V Associates L.L.C. bought a new stake in shares of Bumble in the second quarter worth about $16,174,499. Institutional investors own 94.85% of the company's stock.

About Bumble

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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