Match Group (NASDAQ:MTCH) Hits New 12-Month High After Better-Than-Expected Earnings

Match Group Inc. (NASDAQ:MTCH) shares reached a new 52-week high on Tuesday following a stronger than expected earnings report. The company traded as high as $41.32 and last traded at $41.1860, with a volume of 394290 shares. The stock had previously closed at $40.54.

The technology company reported $0.70 earnings per share for the quarter, topping analysts’ consensus estimates of $0.65 by $0.05. The firm had revenue of $853.11 million for the quarter, compared to analyst estimates of $857.77 million. Match Group had a negative return on equity of 326.67% and a net margin of 20.17%.Match Group’s quarterly revenue was down 1.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.49 earnings per share.

Match Group Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 20th. Stockholders of record on Monday, October 5th will be paid a dividend of $0.20 per share. The ex-dividend date of this dividend is Monday, October 5th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.1%. Match Group’s dividend payout ratio is 30.53%.

Key Headlines Impacting Match Group

Here are the key news stories impacting Match Group this week:

• Positive Sentiment: Turnaround indicators improved. Tinder’s year-over-year daily and monthly active-user declines narrowed, while Hinge revenue increased 22% and global monthly active users rose 13%. Management also highlighted improving Tinder engagement and continued product innovation. Match Group Announces Second Quarter Results
• Positive Sentiment: Profitability exceeded expectations. Match Group reported adjusted earnings of $0.70 per share versus the $0.65 consensus estimate, while net income rose 36% year over year to $170.5 million. The company also repurchased approximately 7.3 million shares year to date. Match Group Earnings Report
• Positive Sentiment: Shareholder returns remain supportive. The board declared a quarterly dividend of $0.20 per share, equivalent to an annualized yield of roughly 2.1%. TD Cowen reaffirmed a Buy rating, although it reduced its price target to $45. Match Group Buy Rating Reaffirmed
• Neutral Sentiment: Management is investing for a longer-term recovery. Match Group is expanding Tinder Events to 26 cities by the end of September and continuing product and user-experience changes that may benefit engagement but weigh on short-term monetization. Match Group Q3 Outlook and Tinder Events
• Negative Sentiment: Revenue missed estimates and declined. Second-quarter revenue was approximately $853 million, down about 1% year over year and below analysts’ expectations near $858 million. Tinder’s sluggish performance and lower payer numbers remain the primary concerns. Match Group Q2 Earnings and Revenue Miss
• Negative Sentiment: Third-quarter guidance reinforced investor caution. Match Group forecast revenue of $885 million to $895 million, roughly around but slightly below the $891 million consensus midpoint, signaling that the recovery may take time. Match Group Weak Outlook

Analyst Upgrades and Downgrades

A number of research firms recently commented on MTCH. Wall Street Zen raised shares of Match Group from a “hold” rating to a “buy” rating in a report on Sunday, April 26th. Royal Bank Of Canada increased their target price on shares of Match Group from $37.00 to $42.00 and gave the company an “outperform” rating in a report on Wednesday, May 6th. Wells Fargo & Company lifted their price target on shares of Match Group from $38.00 to $41.00 and gave the company an “equal weight” rating in a research report on Tuesday, July 7th. UBS Group lifted their price target on shares of Match Group from $34.00 to $38.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. Finally, Truist Financial boosted their price target on Match Group from $37.00 to $41.00 and gave the stock a “hold” rating in a research note on Wednesday. Six analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $41.79.

Insider Activity

In other news, Director Melissa Anne Brenner sold 5,141 shares of the stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $35.94, for a total value of $184,767.54. Following the sale, the director directly owned 16,218 shares in the company, valued at $582,874.92. This represents a 24.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.71% of the stock is owned by company insiders.

Institutional Trading of Match Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Woodline Partners LP purchased a new stake in shares of Match Group during the first quarter worth about $662,000. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Match Group by 20.4% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 5,260 shares of the technology company’s stock valued at $162,000 after buying an additional 891 shares during the period. First Trust Advisors LP boosted its position in Match Group by 45.9% during the second quarter. First Trust Advisors LP now owns 649,721 shares of the technology company’s stock worth $20,070,000 after acquiring an additional 204,472 shares during the last quarter. Amundi boosted its position in Match Group by 1,477.6% during the second quarter. Amundi now owns 358,709 shares of the technology company’s stock worth $11,637,000 after acquiring an additional 335,971 shares during the last quarter. Finally, Cresset Asset Management LLC purchased a new stake in Match Group in the 2nd quarter worth approximately $298,000. Hedge funds and other institutional investors own 94.05% of the company’s stock.

Match Group Trading Down 7.5%

The company’s 50 day simple moving average is $37.31 and its 200 day simple moving average is $34.34. The stock has a market capitalization of $8.90 billion, a PE ratio of 13.48, a PEG ratio of 0.66 and a beta of 1.30.

About Match Group

Match Group, Inc (NASDAQ: MTCH) is a leading provider of online dating products and services. The company owns and operates a diverse portfolio of consumer brands that connect singles through digital platforms. Its flagship offerings include Match.com, Tinder, Hinge, OkCupid and PlentyOfFish, which together serve users looking for long-term relationships, casual encounters and social networking opportunities.

Originating with the launch of Match.com in 1995, Match Group has grown through a combination of organic development and strategic acquisitions.