Vandana Mehta-Krantz, the Chief Financial Officer of Grindr Inc. (NYSE:GRND), recently sold a significant portion of her holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Mehta-Krantz sold 60,776 shares of common stock on November 13. The shares were sold at a weighted average price of $14.29, amounting to a total transaction value of approximately $868,489.
The sale was conducted under a pre-established Rule 10b5-1 trading plan, which was adopted on August 13, 2024. Following this transaction, Mehta-Krantz retains ownership of 722,126 shares in Grindr. The shares were sold in multiple transactions with prices ranging from $14.13 to $14.58.
In other recent news, Just Eat Takeaway (AS:TKWY) has divested Grubhub (NYSE:GRUB) to Wonder for $650 million, marking a significant shift within the meal delivery industry. This transaction is part of Just Eat Takeaway's strategic decision to streamline its operations and refocus on its core markets amid intense competition and rapidly changing market dynamics. The deal is expected to boost Wonder's presence in the U.S. meal delivery market.
In a separate development, Grindr reported strong growth in its recent third quarter earnings call, with total revenue increasing by 27% year-over-year to reach $89 million. The company's adjusted EBITDA stood at $40 million, contributing to a 45% margin. This growth was fueled by the success of the Weekly Unlimited subscription and a surge in advertising demand, resulting in a 43% increase in indirect revenue to $12 million.
These are just a few of the recent developments within these companies. It's important to note that while these events are significant, they are part of a broader context of ongoing business activities and market trends.
InvestingPro Insights
While Grindr Inc. (NYSE:GRND) has seen its CFO reduce her stake, recent data from InvestingPro paints a nuanced picture of the company's financial health and market performance. The stock has demonstrated remarkable strength, with InvestingPro data showing a 108.7% price total return over the past year and a 40.66% return in the last six months. This robust performance aligns with an InvestingPro Tip indicating a "high return over the last year."
Despite the positive stock momentum, Grindr faces profitability challenges. An InvestingPro Tip notes that analysts do not anticipate the company to be profitable this year, which is consistent with the reported negative earnings per share of -$0.30 for the last twelve months. However, the company's revenue growth remains strong, with a 31.79% increase in the last twelve months, reaching $319.1 million.
Investors should note that Grindr is trading at high valuation multiples, as highlighted by another InvestingPro Tip. This could explain the CFO's decision to sell shares, potentially capitalizing on the current market valuation. For a more comprehensive analysis, InvestingPro offers 12 additional tips for Grindr, providing deeper insights into the company's financial position and market outlook.
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