Y Intercept Hong Kong Ltd has significantly increased its holdings in Bumble Inc. (NASDAQ:BMBL) by an impressive 533% during the third quarter of 2023. According to the company’s recent disclosure to the Securities and Exchange Commission, Y Intercept now owns 313,899 shares, having acquired an additional 264,312 shares in this period. This investment is valued at approximately $1.9 million, representing around 0.30% of Bumble’s total shares.
Several other institutional investors have also adjusted their positions in Bumble. Notably, Nordea Investment Management AB increased its stake by 5.1%, now holding 1,160,668 shares worth $7.07 million. Meanwhile, SG Americas Securities LLC purchased a new position valued at about $562,000, while Global Retirement Partners LLC expanded its holdings by a staggering 1,760.8%, bringing its total to 10,588 shares valued at $64,000. CWM LLC also raised its position by 46.9%, now owning 56,486 shares worth $344,000. Collectively, institutional investors own 94.85% of Bumble’s stock.
Analyst Ratings and Market Performance
Market analysts have taken a cautious stance on Bumble’s stock. Morgan Stanley recently reduced its price target from $6.00 to $3.50, assigning an “equal weight” rating. Similarly, UBS Group lowered its target from $6.50 to $5.00, maintaining a “neutral” rating. In a more bearish outlook, Zacks Research downgraded Bumble from a “hold” to a “strong sell” rating.
As of November 5, 2023, the stock opened at $3.51 and has a market capitalization of $395.72 million. Bumble’s price-to-earnings (P/E) ratio stands at 3.13, with a price-to-earnings-growth (PEG) ratio of 0.13. The company’s current ratio and quick ratio are both 3.55, while the debt-to-equity ratio is 0.97. Over the past year, Bumble has seen a low of $3.18 and a high of $8.82.
On November 5, Bumble reported earnings per share (EPS) of $0.33 for the most recent quarter, falling short of analysts’ expectations of $0.39 by $0.06. The company’s revenue for the quarter was $246.16 million, slightly exceeding estimates of $244.19 million. Despite this, Bumble’s quarterly revenue has declined by 10% year-over-year, compared to earnings of ($5.11) EPS in the same quarter last year.
Bumble’s Business Model and Future Outlook
Bumble Inc. operates a technology platform that focuses on facilitating social and professional connections through its suite of applications. The flagship app empowers users, particularly women, to take the initiative in dating, thereby reshaping conventional dating norms. In addition to dating, Bumble offers features such as “Bumble BFF” for forming friendships and “Bumble Bizz” for professional networking. The company also owns Badoo, a social discovery platform with a significant presence in Europe and Latin America.
Looking ahead, analysts project that Bumble Inc. will post an EPS of $4.19 for the current year. With a consensus price target of $4.77, investors will be closely monitoring the company’s performance in the upcoming quarters as it navigates a challenging market landscape.
