Bumble (NASDAQ:BMBL) Sees Large Volume Increase – Here’s What Happened

Bumble Inc. (NASDAQ:BMBL) shares saw unusually-strong trading volume on Wednesday. 11,813,047 shares were traded during mid-day trading, an increase of 190% from the previous session’s volume of 4,078,010 shares. The stock last traded at $5.9450 and had previously closed at $5.95.

More Bumble News

Here are the key news stories impacting Bumble this week:

• Positive Sentiment: Ithaca Holdings will acquire Bumble in an all-cash transaction valued at approximately $1.3 billion. Bumble shareholders will receive $6.05 per Class A share, representing an approximately 138% premium to the October 9 unaffected closing price. The premium explains the stock’s surge as investors reassess Bumble’s value based on the acquisition offer. Bumble acquisition announcement
• Positive Sentiment: The transaction gives shareholders a defined cash exit after a difficult period for Bumble, including weak user engagement, declining paying users and pressure across the online-dating industry. Ithaca, a technology holding company, is expected to pursue Bumble’s turnaround away from public-market scrutiny. Reuters Bumble take-private report
• Neutral Sentiment: Trading activity has been unusually heavy, including a substantial jump in call-option volume and temporary trading halts while deal reports were released. This signals intense speculative interest but does not change the transaction’s underlying terms. Bumble acquisition details
• Negative Sentiment: Several law firms have announced investigations into whether the $6.05 offer fairly values Bumble, whether the board obtained the best available price and whether insiders received inappropriate benefits. These reviews could create legal costs, delay closing or encourage competing bids, although they do not currently alter the announced consideration. Bumble shareholder investigation

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on BMBL. Wall Street Zen lowered shares of Bumble from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. Royal Bank Of Canada lowered their target price on shares of Bumble from $5.00 to $4.00 and set a “sector perform” rating for the company in a research note on Friday, August 7th. Raymond James Financial reiterated a “market perform” rating on shares of Bumble in a report on Thursday, June 25th. The Goldman Sachs Group reduced their price target on Bumble from $5.00 to $3.50 and set a “neutral” rating on the stock in a research note on Thursday, August 6th. Finally, Wells Fargo & Company reduced their price target on Bumble from $5.00 to $4.00 and set an “equal weight” rating on the stock in a research note 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’s stock. Based on data from MarketBeat.com, Bumble currently has an average rating of “Reduce” and an average price target of $4.12.

Bumble Trading Down 0.3%

The business has a 50 day simple moving average of $2.85 and a 200-day simple moving average of $3.13. The company has a current ratio of 1.62, a quick ratio of 1.62 and a debt-to-equity ratio of 0.65. The stock has a market capitalization of $783.24 million, a price-to-earnings ratio of -1.40 and a beta of 1.88.

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

Insider Activity at Bumble

In related news, major shareholder Bx Buzz Ml-1 Gp Llc sold 3,767,776 shares of the business’s stock in a transaction that occurred on 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 sale, the insider directly owned 16,120 shares in the company, valued at approximately $47,392.80. The trade was a 99.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Buzz Holdings L.P. Bcp sold 3,767,776 shares of the business’s stock in a transaction that occurred on 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 sale, the insider owned 16,120 shares of the company’s stock, valued at approximately $47,392.80. The trade was a 99.57% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 15,073,811 shares of company stock valued at $44,316,003 over the last three months. Insiders own 15.35% of the company’s stock.

Hedge Funds Weigh In On Bumble

Large investors have recently bought and sold shares of the stock. Headlands Technologies LLC boosted its holdings in shares of Bumble by 10.1% in the 2nd quarter. Headlands Technologies LLC now owns 51,703 shares of the company’s stock valued at $165,000 after purchasing an additional 4,746 shares during the last quarter. L2 Asset Management LLC purchased a new stake in shares of Bumble during the 2nd quarter valued at $42,000. Globeflex Capital L P acquired a new stake in shares of Bumble during the 2nd quarter worth $70,000. Accel Growth Fund V Associates L.L.C. acquired a new stake in shares of Bumble during the 2nd quarter worth $16,174,499. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Bumble during the 2nd quarter worth $1,035,000. Hedge funds and other institutional investors own 94.85% of the company’s stock.

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.