Grindr (NYSE:GRND) Trading Up 3% - Still a Buy?

Key Points

• Grindr shares rose about 3% to $15.38, though trading volume was 97% below the average. The stock has a $2.67 billion market capitalization and trades at a price-to-earnings ratio of 30.66.
• Analysts remain broadly positive, with five Buy ratings and one Hold rating producing a consensus “Moderate Buy” rating and a $20 price target. Goldman Sachs reaffirmed its Buy rating with a $19 target.
• Grindr exceeded revenue expectations with $138.14 million for the quarter but missed earnings estimates, reporting $0.10 per share versus the expected $0.16. Insiders have sold 52,250 shares over the past three months, while institutional investors—including BlackRock—have increased or initiated positions.

Grindr Inc. (NYSE:GRND - Get Free Report)'s share price rose 3% on Thursday . The company traded as high as $15.42 and last traded at $15.3780. Approximately 53,035 shares were traded during mid-day trading, a decline of 97% from the average daily volume of 1,553,268 shares. The stock had previously closed at $14.93.

Analyst Ratings Changes

GRND has been the subject of several analyst reports. The Goldman Sachs Group reissued a "buy" rating and issued a $19.00 price objective on shares of Grindr in a research note on Friday, August 7th. TD Cowen restated a "buy" rating on shares of Grindr in a report on Monday, June 1st. Morgan Stanley restated an "overweight" rating on shares of Grindr in a report on Tuesday. Weiss Ratings restated a "hold (c)" rating on shares of Grindr in a report on Friday, August 7th. Finally, Raymond James Financial restated an "outperform" rating on shares of Grindr in a research note on Friday, August 7th. Five research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $20.00.

Grindr Stock Up 2.7%

The stock has a market capitalization of $2.67 billion, a PE ratio of 30.66 and a beta of 0.19. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 442.30. The company's 50-day moving average is $15.91 and its 200 day moving average is $13.80.

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

Insider Buying and Selling at Grindr

In other Grindr news, insider Zachary Katz sold 12,979 shares of the business's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $17.89, for a total transaction of $232,194.31. Following the sale, the insider owned 690,172 shares in the company, valued at approximately $12,347,177.08. The trade was a 1.85% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Daniel Baer sold 3,500 shares of the business's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $15.65, for a total value of $54,775.00. Following the sale, the director owned 47,912 shares in the company, valued at approximately $749,822.80. The trade was a 6.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 52,250 shares of company stock worth $818,045. 60.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Grindr

A number of institutional investors and hedge funds have recently modified their holdings of the company. Emmett Investment Management LP purchased a new position in shares of Grindr in the 1st quarter valued at about $3,702,000. Canada Pension Plan Investment Board purchased a new position in Grindr during the second quarter worth approximately $1,631,000. Dimensional Fund Advisors LP boosted its position 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 in the last quarter. Quantinno Capital Management LP grew its holdings in Grindr by 194.0% in the first quarter. Quantinno Capital Management LP now owns 117,998 shares of the company's stock valued at $1,427,000 after purchasing an additional 77,867 shares during the period. Finally, BlackRock Inc. acquired a new stake in Grindr in the second quarter valued at approximately $49,159,000. Institutional investors and hedge funds 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.

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