Bumble (NASDAQ:BMBL) Sets New 1-Year High – What’s Next?

Shares of Bumble Inc. (NASDAQ:BMBL) reached a new 52-week high during mid-day trading on Tuesday. The stock 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.

Bumble News Roundup

Here are the key news stories impacting Bumble this week:

• Positive Sentiment: Ithaca will pay Bumble shareholders $6.05 per Class A share, representing an approximately 138% premium to Bumble’s unaffected October 9 closing price. The transaction provides a defined cash-exit value and would take Bumble private. Bumble acquisition announcement
• Positive Sentiment: The announced premium has driven a major repricing in BMBL, with reports describing the stock as up roughly 138% for the week. The deal also reduces investor exposure to Bumble’s ongoing turnaround challenges, including weak user engagement and declining paying users. Reuters Bumble take-private report
• Neutral Sentiment: BMBL is trading close to the proposed $6.05 consideration, leaving only a relatively small spread for investors. Further upside may therefore depend on deal completion rather than Bumble’s standalone operating performance. The transaction remains subject to customary closing conditions and shareholder approval. Yahoo Finance acquisition report
• Negative Sentiment: Several law firms, including Bleichmar Fonti & Auld, Kahn Swick & Foti, and Ademi, have announced investigations into whether the $6.05 price and sale process fairly value Bumble and adequately protect shareholders. These announcements are typically investor solicitations and do not establish wrongdoing, but they could create litigation, delay, or additional uncertainty around the merger. BFA Law Bumble investigation

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on BMBL shares. Wall Street Zen cut Bumble from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Raymond James Financial restated a “market perform” rating on shares of Bumble in a research note on Thursday, June 25th. Wells Fargo & Company dropped their price target on shares of Bumble from $5.00 to $4.00 and set an “equal weight” rating for the company in a research note on Friday, August 7th. Royal Bank Of Canada cut their price target on shares of Bumble from $5.00 to $4.00 and set a “sector perform” rating on the stock in a report on Friday, August 7th. Finally, UBS Group increased their price objective on shares of Bumble from $3.00 to $6.05 and gave the company a “neutral” rating in a research note on Wednesday. One equities research 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’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Reduce” and an average price target of $4.12.

Bumble Stock Up 0.3%

The company has a market capitalization of $787.86 million, a price-to-earnings ratio of -1.41 and a beta of 1.88. The stock’s fifty day simple moving average is $2.90 and its two-hundred day simple moving average is $3.14. 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 quarterly earnings results on Wednesday, August 5th. The company reported ($0.84) earnings per share (EPS) 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 during the quarter, compared to the consensus estimate of $210.46 million. During the same quarter in the previous year, the business posted ($2.45) earnings per share. The company’s quarterly revenue was down 15.2% compared to the same quarter last year. On average, sell-side analysts predict that Bumble Inc. will post -0.08 earnings per share for the current fiscal year.

Insider Buying and Selling at Bumble

In other Bumble news, major shareholder Buzz Holdings L.P. Bcp sold 2,763,510 shares of the firm’s stock in a transaction dated Tuesday, October 13th. The shares were sold at an average price of $3.54, for a total value of $9,782,825.40. Following the transaction, the insider owned 13,733 shares of the company’s stock, valued at $48,614.82. This trade represents a 99.51% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, major shareholder Holdings Gp Man Blackstone III sold 2,763,510 shares of the firm’s stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $3.54, for a total transaction of $9,782,825.40. Following the completion of the transaction, the insider directly owned 13,733 shares in the company, valued at $48,614.82. This represents a 99.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 26,127,851 shares of company stock worth $83,447,304 in the last ninety days. Insiders own 15.35% of the company’s stock.

Institutional Trading of Bumble

Institutional investors and hedge funds have recently made changes to their positions in the stock. Headlands Technologies LLC grew its stake in Bumble by 10.1% during the 2nd quarter. Headlands Technologies LLC now owns 51,703 shares of the company’s stock worth $165,000 after buying an additional 4,746 shares during the last quarter. L2 Asset Management LLC bought a new stake in Bumble in the second quarter valued at $42,000. Globeflex Capital L P acquired a new position in shares of Bumble during the second quarter valued at $70,000. Accel Growth Fund V Associates L.L.C. acquired a new position in shares of Bumble during the second quarter valued at $16,174,499. Finally, Bank of New York Mellon Corp acquired a new position in shares of Bumble during the second quarter valued at $1,035,000. 94.85% of the stock is currently owned by institutional investors and hedge funds.

Bumble Company Profile

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.