Bumble (NASDAQ:BMBL) Reaches New 52-Week High – Time to Buy?

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

Trending Headlines about Bumble

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

Analysts Set New Price Targets

Several research firms recently commented on BMBL. The Goldman Sachs Group cut their price objective on shares of Bumble from $5.00 to $3.50 and set a “neutral” rating on the stock in a research report on Thursday, August 6th. Royal Bank Of Canada dropped their target price on Bumble from $5.00 to $4.00 and set a “sector perform” rating on the stock in a research report on Friday, August 7th. Wall Street Zen cut shares of Bumble from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Raymond James Financial reissued a “market perform” rating on shares of Bumble in a research report on Thursday, June 25th. Finally, Weiss Ratings upgraded shares of Bumble from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Monday. One investment analyst has rated the stock with a Buy rating, fifteen have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Reduce” and an average price target of $3.87.

Bumble Trading Up 56.7%

The business has a 50-day simple moving average of $2.79 and a two-hundred day simple moving average of $3.11. The stock has a market cap of $785.88 million, a price-to-earnings ratio of -1.41 and a beta of 1.88. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.62 and a quick ratio of 1.62.

Bumble (NASDAQ:BMBL) last posted its earnings results on Wednesday, August 5th. The company reported ($0.84) earnings per share for the quarter, missing analysts’ consensus estimates 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 business had revenue of $210.53 million for the quarter, compared to analyst estimates of $210.46 million. During the same period in the previous year, the firm posted ($2.45) earnings per share. The firm’s revenue was down 15.2% compared to the same quarter last year. Equities analysts forecast that Bumble Inc. will post -0.08 EPS for the current fiscal year.

Insider Transactions at Bumble

In related news, major shareholder Bx Buzz Ml-1 Gp Llc 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 value of $11,077,261.44. Following the transaction, the insider directly owned 16,120 shares in the company, valued at approximately $47,392.80. This represents a 99.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, major shareholder – Nq L.L.C. Btoa sold 3,767,776 shares of the firm’s stock in a transaction that occurred on Monday, September 28th. The stock was sold at an average price of $2.94, for a total transaction of $11,077,261.44. Following the transaction, the insider directly owned 16,120 shares in the company, valued at $47,392.80. This represents a 99.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 15,073,811 shares of company stock worth $44,316,003 over the last three months. Company insiders own 15.35% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. HB Wealth Management LLC bought a new stake in shares of Bumble during the 1st quarter worth approximately $34,000. L2 Asset Management LLC bought a new position in shares of Bumble in the second quarter worth about $42,000. R Squared Ltd bought a new position in Bumble in the 1st quarter valued at approximately $48,000. Abel Hall LLC boosted its position in Bumble by 49.4% in the first quarter. Abel Hall LLC now owns 17,530 shares of the company’s stock valued at $57,000 after buying an additional 5,793 shares in the last quarter. Finally, Chicago Partners Investment Group LLC acquired a new stake in shares of Bumble during the 1st quarter valued at $63,000. Institutional investors and hedge funds 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.