Bumble Inc. (NASDAQ:BMBL) director Sissie L. Hsiao has sold a portion of her holdings in the company, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on October 4, 2024, involved the sale of 2,707 shares of Class A Common Stock at a weighted average price of $6.7578 per share, totaling approximately $18,293.
The sales were executed as part of a pre-arranged 10b5-1 trading plan, which Hsiao adopted on March 7, 2024. Such plans allow company insiders to sell stocks at predetermined times to avoid allegations of insider trading. The filing noted that the sales were made in part to cover tax obligations associated with the vesting of restricted stock units.
The SEC filing provided a price range for the shares sold. The transactions occurred at varying prices from $6.68 to $6.7950 per share, indicating that the sales were spread out to minimize market impact and possibly to maximize returns.
Following the sale, Hsiao still retains a substantial interest in Bumble Inc., with 40,571 shares of Class A Common Stock remaining in her possession. The transactions are part of the routine financial management of her investment in the company and are publicly disclosed for transparency and regulatory compliance.
Bumble Inc., headquartered in Austin, Texas, operates in the tech sector, providing online dating and networking platforms. The company's stock is publicly traded on the NASDAQ, where investors can follow its performance under the ticker symbol BMBL.
In other recent news, Bumble Inc. has been a focal point in the analyst community. Loop Capital, despite noting a slowdown in the app's user growth, maintains a Buy rating on Bumble, emphasizing the company's solid financial position. However, revenue projections are now $4 million below consensus. The firm also highlighted Bumble's Q2 2024 results, which showed a 3% rise in total revenue to $269 million and a surge in net earnings to $38 million.
TD (TSX:TD) Cowen, on the other hand, downgraded Bumble's stock from Buy to Hold due to concerns about year-over-year revenue declines in the second half of 2024. KeyBanc also adjusted its stance, reducing its price target for Bumble amid growth concerns but maintained its Overweight rating.
Susquehanna downgraded Bumble's stock from Positive to Neutral, citing concerns about the company's strategic overhaul. Similarly, Citi downgraded Bumble's stock from Buy to Neutral following a disappointing outlook for the company. Despite these downgrades, Bumble made a strategic move to diversify its offerings with the recent acquisition of the community app Geneva. These are the recent developments that investors should keep an eye on.
InvestingPro Insights
Bumble Inc.'s recent insider transaction occurs against a backdrop of mixed financial signals. According to InvestingPro data, the company's market capitalization stands at $1.1 billion, with a P/E ratio of 19.66, suggesting a relatively modest valuation compared to some tech peers. This aligns with an InvestingPro Tip indicating that Bumble is "Trading at a low P/E ratio relative to near-term earnings growth," which could be of interest to value-oriented investors.
Despite the recent insider sale, there are positive indicators for Bumble's financial health. The company's revenue for the last twelve months as of Q2 2024 reached $1.09 billion, with a robust gross profit margin of 70.44%. This strong profitability is complemented by an InvestingPro Tip noting that "Net income is expected to grow this year," suggesting potential for improved financial performance.
However, investors should be aware of the stock's recent volatility. InvestingPro data shows a significant 31.68% price decline over the past three months, with the stock trading at just 40.13% of its 52-week high. This volatility is captured in another InvestingPro Tip, which states that "Stock price movements are quite volatile."
For those interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for Bumble Inc., providing a deeper understanding of the company's financial position and market performance.
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