Bumble (NASDAQ:BMBL) Stock Sees Unusually High Call Option Buying

Bumble Inc. (NASDAQ:BMBL) saw unusually large options trading activity on Tuesday. Stock investors bought 22,861 call options on the stock. This represents an increase of 1,682% compared to the typical daily volume of 1,283 call options.

Insider Activity at Bumble

In other news, major shareholder Holdings Gp Man Blackstone III sold 3,767,776 shares of the stock in a transaction dated Monday, September 28th. The shares were sold at an average price of $2.94, for a total value of $11,077,261.44. Following the completion of the transaction, the insider owned 16,120 shares in the company, valued at $47,392.80. This trade represents a 99.57% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, major shareholder Buzz Holdings L.P. Bcp sold 3,767,776 shares of the stock in a transaction dated Monday, September 28th. The shares were sold at an average price of $2.94, for a total transaction of $11,077,261.44. Following the completion of the transaction, the insider owned 16,120 shares of the company’s stock, valued at $47,392.80. This represents a 99.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 15,073,811 shares of company stock valued at $44,316,003. Company insiders own 15.35% of the company’s stock.

Institutional Trading of Bumble

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BMBL. HB Wealth Management LLC purchased a new stake in Bumble during the 1st quarter worth about $34,000. L2 Asset Management LLC acquired a new position in Bumble in the 2nd quarter valued at about $42,000. R Squared Ltd acquired a new stake in shares of Bumble during the 1st quarter worth about $48,000. Abel Hall LLC boosted its stake in shares of Bumble by 49.4% during the 1st quarter. Abel Hall LLC now owns 17,530 shares of the company’s stock worth $57,000 after purchasing an additional 5,793 shares during the last quarter. Finally, Chicago Partners Investment Group LLC purchased a new stake in Bumble in the 1st quarter worth approximately $63,000. Hedge funds and other institutional investors own 94.85% of the company’s stock.

Bumble Price Performance

NASDAQ:BMBL traded up $2.13 during trading hours on Tuesday, reaching $5.93. 79,010,179 shares of the company traded hands, compared to its average volume of 3,875,159. The firm’s 50-day moving average is $2.79 and its 200-day moving average is $3.11. The stock has a market cap of $783.24 million, a P/E ratio of -1.40 and a beta of 1.88. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.62 and a quick ratio of 1.62. Bumble has a 1-year low of $2.44 and a 1-year high of $5.98.

Bumble (NASDAQ:BMBL) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.84) earnings per share for the quarter, missing the consensus estimate of $0.25 by ($1.09). Bumble had a positive return on equity of 35.88% and a negative net margin of 58.99%. The company had revenue of $210.53 million for the quarter, compared to analysts’ expectations of $210.46 million. During the same period in the previous year, the business posted ($2.45) EPS. The business’s quarterly revenue was down 15.2% on a year-over-year basis. Equities research analysts expect that Bumble will post -0.08 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several research analysts have weighed in on BMBL shares. Susquehanna lowered their target price on shares of Bumble from $3.50 to $3.00 and set a “neutral” rating on the stock in a research report on Friday, August 7th. The Goldman Sachs Group reduced their price target on shares of Bumble from $5.00 to $3.50 and set a “neutral” rating for the company in a research report on Thursday, August 6th. Raymond James Financial reissued a “market perform” rating on shares of Bumble in a research note on Thursday, June 25th. Weiss Ratings raised Bumble from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Monday. Finally, Royal Bank Of Canada lowered their price target on Bumble from $5.00 to $4.00 and set a “sector perform” rating on the stock in a report on Friday, August 7th. One analyst has rated the stock with a Buy rating, fifteen have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Reduce” and an average price target of $3.87.

Bumble News Summary

Here are the key news stories impacting Bumble this week:

• Positive Sentiment: Take-private offer provides a significant premium. Bumble shareholders will receive $6.05 per Class A share, representing roughly a 138% premium to the unaffected closing price on October 9. The cash consideration gives investors a clear exit value and substantially exceeds the stock’s recent trading levels. Bumble acquisition announcement
• Positive Sentiment: Acquisition ends prolonged public-market pressure. Ithaca Holdings, an investment firm associated with technology executives, is acquiring Bumble as the company attempts to execute a turnaround amid changing Gen Z dating habits and weaker user monetization. Going private could give management more flexibility to pursue that strategy away from quarterly market scrutiny. Reuters acquisition report
• Neutral Sentiment: Heavy call-option activity reflects speculation. Traders bought 22,861 Bumble call options, approximately 1,682% above average volume. The activity signals intense interest in the deal but does not by itself change the company’s fundamentals or guarantee that the transaction will close.
• Negative Sentiment: The offer follows significant operating weakness. Bumble has faced weak engagement and declining paying users, while its latest reported quarter showed a 15.2% year-over-year revenue decline and a loss that missed analyst expectations. Those challenges help explain why the company is being sold at a valuation far below its earlier public-market peak. TechCrunch acquisition report

About Bumble

Bumble Inc is a technology company that operates a portfolio of online dating and social networking platforms. Its flagship Bumble app is designed to help people make meaningful connections, including romantic relationships, friendships and professional contacts. A distinctive feature of Bumble’s dating service has historically given women greater control over initiating conversations in heterosexual matches.

The company also operates Badoo, an online dating platform with a significant international presence, and Bumble For Friends, a service focused on helping users build platonic friendships.