Bumble's First-Ever Acquisition Pushes Stock Higher

The stock is still facing a few technical obstacles on the charts

Deputy Editor
Feb 7, 2022 at 10:04 AM
facebook twitter linkedin

Dating app purveyor Bumble Inc (NASDAQ:BMBL) has made its first acquisition, purchasing its French sector peer Fruitz for an undisclosed amount. Fruitz is a popular dating app among Gen Z, and has seen wide growth in France, the Netherlands, Canada, Spain, Switzerland, and more. BMBL was last seen up 3% at $28.49. 

The stock has a long way before it recovers from its mid-November bear gap. The equity briefly found support at the $30 level, though its 30-day moving average has moved in as pressure on the charts since then, ultimately sending BMBL to a record low of $25.90 on Jan 28. The stock is still facing pressure at both these areas, though it seems to have found its footing at the $27 level. 

Bumble was recently the recipient of a lofty bull note from J.P. Morgan Securities, and sentiment surrounding the stock is surprisingly optimistic. Of the 13 in coverage, nine call it a "buy" or better, and there's not a single "sell" on the books. What's more, the 12-month consensus price target of $52.47 is an 89.7% premium to Friday's close. 

Options traders have taken a more bearish stance than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BMBL sports a 10-day put/call volume ratio of 0.94, which stands higher than 92% of readings from the past year. This implies options traders are picking up long puts at a quicker-than-usual clip. 

Short interest has also been on the rise, climbing 14.2% in the last two reporting periods. The 7.18 million shares sold short represent 5.6% of the stock's available float, or a little under four days at its average daily pace of trading. 





Special Offers from Schaeffer's Trading Partners