On September 26, 2023, global financial institution HSBC initiated coverage on the shares of Bumble (NASDAQ:BMBL) and released a report via Bloomberg.com. In this report, HSBC gave the stock a “buy” rating and set a price target of $20.30. This indicates a potential upside of 37.16% from the current price.
At market open on Tuesday, BMBL stock was valued at $14.80. The company’s financial ratios show a debt-to-equity ratio of 0.42, a current ratio and quick ratio of 2.82 each. The firm’s 50-day moving average stands at $16.80, while its two-hundred day moving average is recorded as $17.46.The stock’s low over the past 12 months has been $14.28, with a high of $27.92 during the same period. Bumble currently holds a market capitalization of $2.02 billion with a PE ratio of -22.09 and possesses a beta of 1.87.
Bumble Inc operates as an online dating and social networking platform in North America, Europe, and internationally. The company owns and manages websites and applications that offer subscription-based and in-app purchases for dating products like Bumble and Badoo apps, along with Fruitz—an online dating app. On Tuesday, August 8th, Bumble (NASDAQ:BMBL) announced its most recent earnings results, reporting earnings per share (EPS) for the quarter at $0.05 which exceeded analysts’ consensus estimates by $0.02.
Despite having a net margin of -8.94%, Bumble showcased positive return on equity at 1.82%. The company generated revenue totaling $259.70 million for the quarter—higher than the estimated consensus figure of $256.63 million—indicating an increase in revenue of 17.0% compared to the corresponding period of the previous year. Analysts predict that Bumble will achieve earnings per share of 0.24 for the current fiscal year.
In conclusion, with HSBC initiating coverage on Bumble shares, providing a “buy” rating and price target suggesting significant potential upside from the current stock price, investors may want to consider carefully analyzing their investment options based on this information regarding Bumble’s financial performance and projected growth in the online dating and social networking industry.
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Bumble Faces Uncertainty as Research Firms and Institutional Investors Weigh In
In recent months, Bumble, the popular dating app, has been subject to a wave of reports from various research firms. These reports have provided insight into the company’s stock performance and its outlook for the future. The reduction of price targets by several prominent research firms has led to a sense of perplexity and uncertainty surrounding Bumble’s prospects.
Loop Capital, one such research firm, lowered its price target on Bumble shares from $19.00 to $18.00 in late June. This decision was followed by Raymond James’ reduction from $25.00 to $22.00 in early August, along with an “outperform” rating on the stock. Royal Bank of Canada also adjusted its price target, bringing it down from $27.00 to $23.00 while maintaining an “outperform” rating.
KeyCorp further lowered the price target from $25.00 to $24.00 in mid-August, but expressed optimism with an “overweight” rating on the stock. On a more positive note, Piper Sandler raised its target price on Bumble from $18.00 to $20.00.
Overall, five research analysts have given Bumble a hold rating and ten have assigned it a buy rating according to Bloomberg data as of September 26th, 2023. The consensus among these analysts is that Bumble is a moderate buy with an average target price of $24.78.
Aside from these reports, institutional investors and hedge funds have made significant moves regarding their stakes in Bumble over the past few months. For instance, Teachers Retirement System of The State of Kentucky saw its holdings increase by 24.8% during the second quarter after acquiring an additional 12,233 shares worth approximately $1,032,000.
Nuveen Asset Management LLC also expanded its holdings in Bumble by 0.9% during the same period through the acquisition of an additional 4,003 shares valued at $7,439,000. Neo Ivy Capital Management likewise established a new position in the company, investing approximately $70,000 in the second quarter. GTS Securities LLC also entered the Bumble market during that period with a position worth $369,000.
Alliancebernstein L.P., on the other hand, increased its holdings by 11.9% to own 98,495 shares worth around $1,653,000.
Overall, institutional investors and hedge funds currently account for a significant 94.85% ownership of Bumble’s stock.
The combination of these reports and movements from key institutional investors has contributed to a sense of confusion and uncertainty surrounding Bumble’s future trajectory. Market watchers are paying close attention as they relentlessly seek answers about the company’s stock performance.
It remains to be seen how these developments will impact Bumble’s overall performance in the coming quarters. Investors and analysts alike will continue to monitor the situation closely for any signs of stability or potential growth within the dating app sector or whether further adjustments are necessary moving forward.
