Wall Street Zen Downgrades Bumble (NASDAQ:BMBL) to Hold

Key Points

• Wall Street Zen downgraded Bumble from “buy” to “hold,” adding to a broadly cautious analyst backdrop. The stock’s consensus rating is now “Reduce,” with an average price target of $4.33.
• Bumble shares were down 5% and opened at $2.84, near the 52-week low of $2.61. The company has a market cap of about $368.7 million.
• Recent results were mixed: Bumble beat quarterly EPS and revenue estimates, but revenue still fell 14.1% year over year. Insiders have also sold heavily in recent months, while institutional ownership remains high at 94.85%.

Bumble (NASDAQ:BMBL - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

A number of other equities research analysts have also issued reports on the stock. JPMorgan Chase & Co. upgraded shares of Bumble from an "underweight" rating to a "neutral" rating in a report on Thursday, March 12th. Susquehanna restated a "neutral" rating and set a $3.50 price target on shares of Bumble in a report on Thursday, March 12th. Morgan Stanley boosted their price target on shares of Bumble from $3.50 to $4.00 and gave the company an "equal weight" rating in a report on Thursday, March 12th. Bank of America cut their price target on shares of Bumble from $3.50 to $3.30 and set an "underperform" rating on the stock in a report on Thursday, March 12th. Finally, Citigroup dropped their price objective on shares of Bumble from $3.90 to $3.60 and set a "neutral" rating on the stock in a research note on Tuesday, May 26th. One analyst has rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $4.33.

Bumble Stock Down 5.0%

BMBL stock opened at $2.84 on Friday. Bumble has a 52-week low of $2.61 and a 52-week high of $8.64. The company's 50 day simple moving average is $3.54 and its 200-day simple moving average is $3.45. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.22 and a quick ratio of 1.22. The firm has a market capitalization of $368.69 million, a P/E ratio of -0.49, a P/E/G ratio of 0.10 and a beta of 1.89.

Bumble (NASDAQ:BMBL - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported $0.34 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.25 by $0.09. Bumble had a negative net margin of 72.04% and a positive return on equity of 32.66%. The business had revenue of $212.38 million for the quarter, compared to analyst estimates of $211.59 million. During the same quarter in the previous year, the business earned $0.13 earnings per share. The firm's revenue was down 14.1% compared to the same quarter last year. As a group, equities research analysts anticipate that Bumble will post 0.99 EPS for the current year.

Insider Activity at Bumble

In other news, major shareholder - Nq L.L.C. Btoa sold 7,477,504 shares of the stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $3.51, for a total transaction of $26,246,039.04. Following the transaction, the insider owned 25,832 shares in the company, valued at $90,670.32. This represents a 99.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, major shareholder Bx Buzz Ml-1 Gp Llc sold 7,477,504 shares of the stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $3.51, for a total transaction of $26,246,039.04. Following the transaction, the insider owned 25,832 shares in the company, valued at approximately $90,670.32. This trade represents a 99.66% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 29,910,016 shares of company stock worth $104,984,156 in the last 90 days. 15.35% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of BMBL. Vanguard Group Inc. increased its stake in shares of Bumble by 52.0% during the 3rd quarter. Vanguard Group Inc. now owns 11,164,004 shares of the company's stock worth $67,989,000 after purchasing an additional 3,820,205 shares during the last quarter. Saba Capital Management L.P. increased its stake in shares of Bumble by 52.6% during the 4th quarter. Saba Capital Management L.P. now owns 5,337,549 shares of the company's stock worth $19,055,000 after purchasing an additional 1,838,923 shares during the last quarter. Renaissance Technologies LLC increased its stake in shares of Bumble by 48.6% during the 1st 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. Tudor Investment Corp ET AL acquired a new position in shares of Bumble during the 3rd quarter worth $6,013,000. Finally, Jacobs Levy Equity Management Inc. acquired a new position in shares of Bumble during the 4th quarter worth $3,516,000. Institutional investors and hedge funds own 94.85% of the company's stock.

Bumble Company Profile

Bumble Inc operates a technology platform designed to facilitate social and professional connections through its suite of apps, most notably the flagship Bumble dating app. The company's core premise is to empower users—particularly women—to make the first move, helping to reshape traditional dating dynamics. In addition to its dating function, Bumble offers mode-switching features that allow users to find friends through “Bumble BFF” or pursue professional networking opportunities via “Bumble Bizz.”

Beyond the Bumble app, the company also owns and operates Badoo, a social discovery platform with a substantial global footprint, particularly in Europe and Latin America.

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