Y Intercept Hong Kong Ltd significantly increased its investment in Bumble Inc. (NASDAQ: BMBL) during the third quarter of 2023, reporting a remarkable 533% boost in its holdings. According to the company’s recent filing with the Securities and Exchange Commission, Y Intercept now owns 313,899 shares of Bumble, having acquired an additional 264,312 shares during this period. The value of their stake is approximately $1.9 million.
Other institutional investors have also adjusted their positions in Bumble. For instance, Nordea Investment Management AB raised its holdings by 5.1%, now owning 1,160,668 shares valued at $7.07 million. SG Americas Securities LLC entered a new position worth about $562,000, while Global Retirement Partners LLC increased its stake by an extraordinary 1,760.8%, totaling 10,588 shares valued at $64,000. CWM LLC raised its holdings by 46.9%, now owning 56,486 shares worth $344,000. Additionally, Exchange Traded Concepts LLC acquired a new position valued at $633,000. Overall, institutional investors hold approximately 94.85% of Bumble’s stock.
Analysts Adjust Price Targets
Equities research analysts have also revisited their assessments of Bumble’s stock. Morgan Stanley recently reduced its price target from $6.00 to $3.50 while maintaining an “equal weight” rating. Similarly, UBS Group lowered its target from $6.50 to $5.00 with a “neutral” rating. On the other hand, Zacks Research downgraded Bumble from a “hold” to a “strong sell” rating. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating with a price target of $4.00, while Citigroup set its target at $3.80, down from $5.50. Currently, twelve analysts rate the stock as a hold, with four suggesting a sell, leading to an average rating of “reduce” and a consensus price target of $4.77, according to data from MarketBeat.com.
Bumble’s Market Performance
As of the market opening on Friday, Bumble’s shares were trading down by 3.3% at $3.51. The company has a market capitalization of $395.72 million, a price-to-earnings (PE) ratio of 3.13, and a price-to-earnings-growth (PEG) ratio of 0.13. Bumble’s current ratio and quick ratio are both reported at 3.55, with a debt-to-equity ratio of 0.97. Over the past year, the stock has fluctuated between a low of $3.18 and a high of $8.82.
The latest quarterly earnings report, released on November 5, 2023, indicated that Bumble fell short of analysts’ expectations. The company reported earnings per share (EPS) of $0.33, missing the consensus estimate of $0.39 by $0.06. Revenue for the quarter reached $246.16 million, slightly exceeding expectations of $244.19 million. Year-over-year, Bumble’s revenue declined by 10%, with a negative net margin of 19.82%.
Analysts predict that Bumble Inc. will post an EPS of $4.19 for the current year.
Bumble Inc. operates a technology platform that facilitates social and professional connections through its apps, most notably the flagship Bumble dating app. The platform is designed to empower users, particularly women, to take the initiative in their interactions, thus reshaping traditional dating norms. In addition to dating, Bumble offers features for finding friends through “Bumble BFF” and professional networking via “Bumble Bizz.” The company also owns Badoo, a social discovery platform with a significant presence in Europe and Latin America.
