Match Group (NASDAQ:MTCH) Stock Price Down 5.9% on Analyst Downgrade

Key Points

• Match Group shares fell 5.9% after Wells Fargo cut its price target from $39 to $38 while maintaining an Equal Weight rating. The stock closed near $39.60, below the prior close of $42.07.
• Analyst sentiment remains mixed, though the consensus rating is Moderate Buy with a $45.21 price target; Barclays and Susquehanna raised their targets, while other firms maintained neutral or hold ratings.
• Match slightly exceeded third-quarter EPS expectations at $0.73, but revenue declined 2.5% year over year to about $891 million. Tinder usage is showing signs of improvement, yet weak near-term growth, declining payers and uncertainty around monetization and margins continue to pressure the outlook.

Match Group Inc. (NASDAQ:MTCH - Get Free Report)'s stock price fell 5.9% during trading on Tuesday after Wells Fargo & Company lowered their price target on the stock from $39.00 to $38.00. Wells Fargo & Company currently has an equal weight rating on the stock. Match Group traded as low as $39.39 and last traded at $39.6020. 1,693,882 shares were traded during mid-day trading, a decline of 57% from the average daily volume of 3,979,576 shares. The stock had previously closed at $42.07.

A number of other research firms have also recently commented on MTCH. JPMorgan Chase & Co. started coverage on Match Group in a report on Monday, August 24th. They set a "neutral" rating and a $43.00 price target on the stock. Weiss Ratings upgraded Match Group from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, October 8th. Barclays lifted their target price on Match Group from $51.00 to $52.00 and gave the company an "overweight" rating in a research note on Tuesday. Truist Financial boosted their price target on Match Group from $37.00 to $41.00 and gave the stock a "hold" rating in a report on Wednesday, August 5th. Finally, Susquehanna increased their price objective on shares of Match Group from $45.00 to $50.00 and gave the company a "positive" rating in a report on Tuesday. Nine analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $45.21.

Insider Buying and Selling at Match Group

In related news, Director Stephen Bailey sold 4,760 shares of the stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $42.26, for a total value of $201,157.60. Following the completion of the transaction, the director owned 11,742 shares of the company's stock, valued at approximately $496,216.92. This trade represents a 28.84% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Glenn Schiffman acquired 3,000 shares of Match Group stock in a transaction on Tuesday, August 11th. The shares were bought at an average cost of $36.63 per share, for a total transaction of $109,890.00. Following the completion of the purchase, the director directly owned 56,370 shares of the company's stock, valued at $2,064,833.10. The trade was a 5.62% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders have sold 23,291 shares of company stock valued at $976,478. Corporate insiders own 0.71% of the company's stock.

Match Group News Summary

Here are the key news stories impacting Match Group this week:

• Positive Sentiment: Tinder usage is improving. Tinder’s U.S. daily active users returned to year-over-year growth in September and October, an important milestone after more than three years of declines. Match also highlighted continued double-digit user, revenue and payer growth at Hinge. Reuters report on Tinder user growth
• Positive Sentiment: Quarterly results were slightly better on adjusted earnings. Match reported third-quarter revenue of approximately $891 million, broadly in line with expectations, while earnings per share of $0.73 exceeded the cited consensus estimate of $0.71. Revenue, however, declined 2.5% year over year. Match Group third-quarter results
• Neutral Sentiment: Analyst views remain divided. Barclays raised its price target from $51 to $52 and retained an Overweight rating, while Wells Fargo lowered its target from $39 to $38 and maintained Equal Weight. Morgan Stanley and JPMorgan also kept Hold ratings, with targets of $40 and $43, respectively. Barclays rating action
• Negative Sentiment: Near-term growth remains weak. Match guided to fourth-quarter revenue of $865 million to $875 million, implying revenue will be down approximately 1% to flat and is centered near consensus. Investors are also concerned about falling payers and the company’s disclosure of an approximately one-percentage-point margin headwind in 2027. Match Group fourth-quarter guidance
• Negative Sentiment: The recovery is not yet translating into proven monetization or profit growth. Analysts noted that Tinder stabilization, payer trends and margin expansion remain uncertain, limiting the impact of improving engagement metrics on the stock’s valuation. Morgan Stanley Match Group rating

Institutional Trading of Match Group

Several hedge funds and other institutional investors have recently bought and sold shares of MTCH. Fifth Third Wealth Advisors LLC increased its position in shares of Match Group by 2.4% during the third quarter. Fifth Third Wealth Advisors LLC now owns 9,572 shares of the technology company's stock worth $384,000 after purchasing an additional 220 shares in the last quarter. Versant Capital Management Inc boosted its holdings in shares of Match Group by 1.9% in the 2nd quarter. Versant Capital Management Inc now owns 15,463 shares of the technology company's stock valued at $588,000 after acquiring an additional 289 shares during the last quarter. Bessemer Group Inc. grew its holdings in Match Group by 3.1% during the first quarter. Bessemer Group Inc. now owns 10,327 shares of the technology company's stock worth $317,000 after acquiring an additional 311 shares during the period. Bollard Group LLC increased its holdings in shares of Match Group by 0.6% during the 1st quarter. Bollard Group LLC now owns 52,928 shares of the technology company's stock valued at $1,625,000 after purchasing an additional 322 shares in the last quarter. Finally, Whittier Trust Co. increased its holdings in Match Group by 91.3% in the first quarter. Whittier Trust Co. now owns 903 shares of the technology company's stock valued at $29,000 after buying an additional 431 shares in the last quarter. Hedge funds and other institutional investors own 94.05% of the company's stock.

Match Group Stock Performance

The firm has a market capitalization of $9.06 billion, a PE ratio of 13.95, a price-to-earnings-growth ratio of 0.63 and a beta of 1.43. The firm's 50 day moving average price is $42.28 and its 200-day moving average price is $36.54.

Match Group (NASDAQ:MTCH - Get Free Report) last issued its quarterly earnings data on Monday, November 2nd. The technology company reported $0.73 EPS for the quarter, beating the consensus estimate of $0.71 by $0.02. The company had revenue of $891.23 million for the quarter, compared to analyst estimates of $892.45 million. Match Group had a negative return on equity of 324.82% and a net margin of 20.17%. Match Group's quarterly revenue was down 2.5% compared to the same quarter last year. During the same period last year, the company earned $0.62 earnings per share. On average, equities research analysts expect that Match Group Inc. will post 3.31 earnings per share for the current fiscal year.

Match Group Company Profile

Match Group, Inc is a global provider of online dating and social discovery services. The company operates a portfolio of dating applications and websites designed to help people form relationships, including Tinder, Hinge, Match, Meetic, OkCupid, Plenty of Fish, BLK, Chispa and The League.

Its platforms serve users across a broad range of geographies and relationship preferences. Match Group generates revenue primarily through paid subscriptions, premium features, à la carte purchases and advertising.

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