Match Group (NASDAQ:MTCH) Shares Down 5.9% Following Analyst Downgrade

Match Group Inc. (NASDAQ:MTCH) shares were down 5.9% 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. Approximately 1,693,882 shares were traded during trading, a decline of 57% from the average daily volume of 3,979,576 shares. The stock had previously closed at $42.07.

MTCH has been the topic of several other research reports. JPMorgan Chase & Co. started coverage on Match Group in a research report on Monday, August 24th. They issued a “neutral” rating and a $43.00 target price on the stock. Morgan Stanley set a $40.00 target price on shares of Match Group in a research note on Wednesday, August 5th. BTIG Research reaffirmed a “neutral” rating on shares of Match Group in a report on Tuesday. Barclays increased their target price on shares of Match Group from $51.00 to $52.00 and gave the company an “overweight” rating in a research report on Tuesday. Finally, Needham & Company LLC raised shares of Match Group to a “buy” rating in a research note on Tuesday. Nine analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $45.21.

Insider Buying and Selling

In related news, Director Stephen Bailey sold 4,760 shares of the company’s 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 sale, the director owned 11,742 shares of the company’s stock, valued at approximately $496,216.92. This represents a 28.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CAO Philip D. Eigenmann sold 15,000 shares of the firm’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $41.70, for a total transaction of $625,500.00. Following the sale, the chief accounting officer owned 19,389 shares of the company’s stock, valued at approximately $808,521.30. The trade was a 43.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 23,291 shares of company stock valued at $976,478 in the last quarter. Corporate insiders own 0.71% of the company’s stock.

Match Group News Roundup

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 Investors Weigh In On Match Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Bank of America Corp DE acquired a new stake in shares of Match Group during the second quarter valued at about $77,859,000. PointState Capital LP purchased a new stake in Match Group during the 2nd quarter worth approximately $41,754,000. Man Group plc purchased a new stake in Match Group during the 2nd quarter worth approximately $23,631,000. Redwood Investment Management LLC acquired a new stake in Match Group during the 2nd quarter worth approximately $2,275,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Match Group during the 2nd quarter worth approximately $1,910,000. Institutional investors and hedge funds own 94.05% of the company’s stock.

Match Group Stock Performance

The company’s 50-day simple moving average is $42.28 and its 200 day simple moving average is $36.54. The company has a market cap of $9.06 billion, a PE ratio of 13.95, a PEG ratio of 0.63 and a beta of 1.43.

Match Group (NASDAQ:MTCH) last released its earnings results on Monday, November 2nd. The technology company reported $0.73 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.71 by $0.02. Match Group had a negative return on equity of 324.82% and a net margin of 20.17%. The firm had revenue of $891.23 million during the quarter, compared to analyst estimates of $892.45 million. During the same period last year, the business posted $0.62 earnings per share. Match Group’s revenue was down 2.5% compared to the same quarter last year. Analysts forecast that Match Group Inc. will post 3.31 EPS for the current year.

About Match Group

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.