Match Group (NASDAQ:MTCH) Sets New 1-Year High on Strong Earnings

Match Group Inc. (NASDAQ:MTCH)’s share price reached a new 52-week high during trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $41.32 and last traded at $41.1860, with a volume of 394290 shares changing hands. The stock had previously closed at $40.54.

The technology company reported $0.70 EPS for the quarter, topping the consensus estimate of $0.65 by $0.05. The firm had revenue of $853.11 million during the quarter, compared to analyst estimates of $857.77 million. Match Group had a net margin of 20.17% and a negative return on equity of 326.67%. Match Group’s revenue for the quarter was down 1.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.49 earnings per share.

Match Group Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 20th. Stockholders of record on Monday, October 5th will be issued a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 2.1%. The ex-dividend date of this dividend is Monday, October 5th. Match Group’s dividend payout ratio is presently 30.53%.

Key Match Group News

Here are the key news stories impacting Match Group this week:

• Positive Sentiment: Turnaround indicators improved. Tinder’s year-over-year daily and monthly active-user declines narrowed, while Hinge revenue increased 22% and global monthly active users rose 13%. Management also highlighted improving Tinder engagement and continued product innovation. Match Group Announces Second Quarter Results
• Positive Sentiment: Profitability exceeded expectations. Match Group reported adjusted earnings of $0.70 per share versus the $0.65 consensus estimate, while net income rose 36% year over year to $170.5 million. The company also repurchased approximately 7.3 million shares year to date. Match Group Earnings Report
• Positive Sentiment: Shareholder returns remain supportive. The board declared a quarterly dividend of $0.20 per share, equivalent to an annualized yield of roughly 2.1%. TD Cowen reaffirmed a Buy rating, although it reduced its price target to $45. Match Group Buy Rating Reaffirmed
• Neutral Sentiment: Management is investing for a longer-term recovery. Match Group is expanding Tinder Events to 26 cities by the end of September and continuing product and user-experience changes that may benefit engagement but weigh on short-term monetization. Match Group Q3 Outlook and Tinder Events
• Negative Sentiment: Revenue missed estimates and declined. Second-quarter revenue was approximately $853 million, down about 1% year over year and below analysts’ expectations near $858 million. Tinder’s sluggish performance and lower payer numbers remain the primary concerns. Match Group Q2 Earnings and Revenue Miss
• Negative Sentiment: Third-quarter guidance reinforced investor caution. Match Group forecast revenue of $885 million to $895 million, roughly around but slightly below the $891 million consensus midpoint, signaling that the recovery may take time. Match Group Weak Outlook

Wall Street Analysts Forecast Growth

MTCH has been the subject of a number of research reports. Royal Bank Of Canada upped their price objective on Match Group from $37.00 to $42.00 and gave the company an “outperform” rating in a research report on Wednesday, May 6th. Truist Financial boosted their price target on Match Group from $37.00 to $41.00 and gave the company a “hold” rating in a research note on Wednesday. Weiss Ratings raised shares of Match Group from a “hold (c)” rating to a “hold (c+)” rating in a research report on Wednesday, July 15th. Citigroup increased their price objective on shares of Match Group from $33.00 to $39.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. Finally, UBS Group raised their price objective on shares of Match Group from $34.00 to $38.00 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. Six research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $41.79.

Insiders Place Their Bets

In other Match Group news, Director Melissa Anne Brenner sold 5,141 shares of the business’s stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $35.94, for a total transaction of $184,767.54. Following the completion of the sale, the director owned 16,218 shares of the company’s stock, valued at approximately $582,874.92. The trade was a 24.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 0.71% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Principal Financial Group Inc. grew its position in shares of Match Group by 338.3% during the first quarter. Principal Financial Group Inc. now owns 1,143,744 shares of the technology company’s stock valued at $35,124,000 after purchasing an additional 882,821 shares in the last quarter. Robeco Institutional Asset Management B.V. increased its holdings in shares of Match Group by 22.7% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 625,638 shares of the technology company’s stock worth $20,202,000 after purchasing an additional 115,852 shares during the last quarter. Deprince Race & Zollo Inc. lifted its position in shares of Match Group by 97.2% in the first quarter. Deprince Race & Zollo Inc. now owns 1,549,147 shares of the technology company’s stock worth $47,574,000 after buying an additional 763,764 shares in the last quarter. Swedbank AB boosted its stake in Match Group by 22.3% during the fourth quarter. Swedbank AB now owns 816,800 shares of the technology company’s stock valued at $26,374,000 after buying an additional 148,700 shares during the last quarter. Finally, Hillsdale Investment Management Inc. boosted its stake in Match Group by 537.9% during the first quarter. Hillsdale Investment Management Inc. now owns 152,450 shares of the technology company’s stock valued at $4,682,000 after buying an additional 128,550 shares during the last quarter. 94.05% of the stock is owned by hedge funds and other institutional investors.

Match Group Stock Performance

The firm has a fifty day simple moving average of $37.31 and a two-hundred day simple moving average of $34.34. The firm has a market cap of $8.90 billion, a PE ratio of 13.48, a PEG ratio of 0.66 and a beta of 1.30.

Match Group Company Profile

Match Group, Inc (NASDAQ: MTCH) is a leading provider of online dating products and services. The company owns and operates a diverse portfolio of consumer brands that connect singles through digital platforms. Its flagship offerings include Match.com, Tinder, Hinge, OkCupid and PlentyOfFish, which together serve users looking for long-term relationships, casual encounters and social networking opportunities.

Originating with the launch of Match.com in 1995, Match Group has grown through a combination of organic development and strategic acquisitions.