Wall Street Zen Downgrades Grindr (NYSE:GRND) to Hold

Key Points

• Wall Street Zen downgraded Grindr from “Buy” to “Hold,” although the broader analyst consensus remains “Moderate Buy,” with five Buy ratings and one Hold rating and a consensus price target of $19.20.
• Grindr shares opened at $17.34, near their 12-month high of $18.69, while the company’s latest quarterly results exceeded expectations with EPS of $0.14 versus $0.13 estimated and revenue of $129.94 million versus $119.42 million expected.
• Insiders sold 35,771 shares worth $531,075 over the past quarter, while institutional ownership stands at 7.22%; corporate insiders continue to hold a majority 60.90% stake.

Grindr (NYSE:GRND - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

A number of other brokerages have also recently issued reports on GRND. Morgan Stanley raised shares of Grindr from an "equal weight" rating to an "overweight" rating and boosted their target price for the company from $15.00 to $18.00 in a report on Wednesday, July 1st. Weiss Ratings raised Grindr from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, May 11th. Raymond James Financial reiterated an "outperform" rating and set a $18.00 price objective on shares of Grindr in a research note on Friday, May 8th. Finally, TD Cowen reissued a "buy" rating on shares of Grindr in a report on Monday, June 1st. Five research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, Grindr currently has a consensus rating of "Moderate Buy" and a consensus target price of $19.20.

Grindr Price Performance

Shares of NYSE:GRND opened at $17.34 on Friday. The firm has a market capitalization of $3.08 billion, a PE ratio of 36.11 and a beta of 0.22. The company has a quick ratio of 1.32, a current ratio of 1.32 and a debt-to-equity ratio of 442.30. The company has a 50-day moving average price of $14.08 and a two-hundred day moving average price of $12.87. Grindr has a twelve month low of $9.73 and a twelve month high of $18.69.

Grindr (NYSE:GRND - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.13 by $0.01. The company had revenue of $129.94 million for the quarter, compared to analyst estimates of $119.42 million. Grindr had a net margin of 19.85% and a return on equity of 123.31%. Equities analysts forecast that Grindr will post 0.59 EPS for the current year.

Insider Buying and Selling at Grindr

In related news, insider Zachary Katz sold 12,800 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $16.28, for a total value of $208,384.00. Following the sale, the insider owned 713,323 shares in the company, valued at approximately $11,612,898.44. This trade represents a 1.76% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 35,771 shares of company stock valued at $531,075 over the last quarter. Corporate insiders own 60.90% of the company's stock.

Hedge Funds Weigh In On Grindr

A number of institutional investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC grew its holdings in shares of Grindr by 289.1% during the first quarter. AQR Capital Management LLC now owns 88,134 shares of the company's stock worth $1,578,000 after purchasing an additional 65,485 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Grindr by 2.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 28,878 shares of the company's stock worth $517,000 after purchasing an additional 762 shares during the last quarter. Creative Planning purchased a new stake in Grindr in the second quarter valued at approximately $310,000. Legal & General Group Plc raised its stake in Grindr by 33.8% in the second quarter. Legal & General Group Plc now owns 30,341 shares of the company's stock valued at $689,000 after purchasing an additional 7,668 shares in the last quarter. Finally, Rhumbline Advisers lifted its position in Grindr by 27.8% during the second quarter. Rhumbline Advisers now owns 55,006 shares of the company's stock valued at $1,249,000 after purchasing an additional 11,963 shares during the last quarter. 7.22% of the stock is currently owned by institutional investors.

About Grindr

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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