Analysts Shun Bumble Stock Despite Earnings Beat

Quarter-to-date, BMBL has shed more than 31%

Digital Content Manager

May 13, 2021 at 10:02 AM

The shares of Bumble Inc (NASDAQ:BMBL) are down 10.8% at $42.12 at last check, despite the online dating concern reporting blowout first-quarter earnings of $1.69 per share -- substantially higher than analysts' estimated losses of 4 cents per share -- as well as a revenue beat. The company posted an upbeat current-quarter forecast to boot, and attributed the positive results to strong user growth, as more people turned to the app during the pandemic.

The brokerage bunch is hesitant, however, after Bumble's CFO cautioned that a return to in-person meetings might not match the speed of the economic reopening. In turn, the security earned seven price-target cuts this morning, including one from Jefferies to $65 from $82. Analysts are split towards Bumble stock, with six of the 12 in question calling it a "strong buy," while the remaining six carried a tepid "hold" rating. Meanwhile, the 12-month consensus target price of $65.31 is a whopping 55.6% premium to current levels.

The security has been trending lower since February, after it went public with an initial public offering price (IPO) of $43. The 40-day moving average has acted as a ceiling over the past month, too. Quarter-to-date, Bumble stock has shed more than 31%.

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