Y Intercept Hong Kong Ltd has dramatically increased its stake in Bumble Inc. (NASDAQ:BMBL), raising its holdings by an impressive 533.0% during the third quarter of 2023. According to the latest disclosure made to the Securities and Exchange Commission (SEC), the institutional investor now owns 313,899 shares of Bumble’s stock after acquiring an additional 264,312 shares over this period. As of the most recent filing, Y Intercept Hong Kong Ltd’s investment in Bumble is valued at approximately $1.9 million, which represents about 0.30% of the company.
Several other institutional investors have also adjusted their positions in Bumble. Notably, Nordea Investment Management AB increased its holdings by 5.1%, now owning 1,160,668 shares worth $7.07 million after purchasing an additional 56,574 shares in the last quarter. SG Americas Securities LLC has entered the market with a new investment valued at approximately $562,000. Global Retirement Partners LLC made a remarkable adjustment, boosting its position by 1,760.8%, now holding 10,588 shares valued at $64,000 after acquiring an additional 10,019 shares.
CWM LLC also increased its stake by 46.9%, owning 56,486 shares worth $344,000 after adding 18,040 shares. Additionally, Exchange Traded Concepts LLC has invested $633,000 in Bumble during this quarter. Collectively, institutional investors now own 94.85% of Bumble’s stock.
Analysts Adjust Ratings and Price Targets
In light of these developments, Wall Street analysts have reevaluated their outlook on Bumble. Morgan Stanley has reduced its price objective from $6.00 to $3.50, maintaining an “equal weight” rating on the stock. Similarly, UBS Group lowered its price target from $6.50 to $5.00, assigning a “neutral” rating. Zacks Research has taken a more pessimistic view, downgrading Bumble from a “hold” to a “strong sell” rating.
Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating with a target price of $4.00. Citigroup has also adjusted its price target down from $5.50 to $3.80, reflecting a “neutral” rating. Overall, twelve analysts have assigned a “hold” rating, while four have issued a “sell” rating, 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 and Financial Results
As of the latest trading session, Bumble’s shares opened at $3.51, reflecting a decline of 3.3%. The company currently holds a market capitalization of $395.72 million, with a price-to-earnings (PE) ratio of 3.13 and a price-to-earnings growth (PEG) ratio of 0.13. Bumble also reports a beta of 1.95, indicating higher volatility compared to the market.
Bumble’s financial metrics show a current ratio and quick ratio of 3.55 each, while the debt-to-equity ratio stands at 0.97. The company has experienced a 50-day simple moving average of $3.58 and a 200-day simple moving average of $5.25. Over the past year, Bumble’s stock has reached a low of $3.18 and a high of $8.82.
In its most recent quarterly earnings report released on November 5, 2023, Bumble reported earnings per share (EPS) of $0.33, falling short of analysts’ consensus estimates of $0.39 by $0.06. The company posted revenue of $246.16 million, which exceeded expectations of $244.19 million. Despite this, Bumble’s revenue reflects a 10.0% decline compared to the same quarter last year, where it reported an EPS loss of ($5.11). Analysts project 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 various apps, with the flagship Bumble dating app leading the charge. The company empowers users, particularly women, to take the initiative in dating, aiming to reshape traditional dynamics. In addition to its dating feature, Bumble offers services such as “Bumble BFF” for finding friends and “Bumble Bizz” for professional networking. The company also owns Badoo, a social discovery platform with a significant presence in Europe and Latin America.