Analyst: Bumble Stock Is 'De-Risked'

The majority of firms in coverage are already bullish

Deputy Editor
Sep 29, 2023 at 9:27 AM
facebook X logo linkedin

Shares of online dating firm Bumble Inc (NASDAQ:BMBL) are 5.7% higher before the bell, following a bull note from Loop Capital Markets. The analyst upgraded BMBL to "buy," calling it "de-risked," praising the company's cash balance and free cash flow generation, both of which will help shield its balance sheet.

Coming into today, analysts were mostly bullish on Bumble stock, but there's room for an unwinding of pessimism. Coming into today, 10 of 16 covering brokerages rated the equity a "buy" or better, but six recommended a "hold." 

Short interest added 29.1% in the last two reporting periods, yet the 7.27 million shares sold short account for 5.4% of the stock's available float. At the security's average pace of trading, it would take shorts nearly four days to buy back their bearish bets.

Short-term options traders, meanwhile, have been much more pessimistic than usual. This is per Bumble stock's Schaeffer's put/call open interest ratio (SOIR) of 12.84 that ranks higher than 97% of reading from the past 12 months.

On the charts, BMBL yesterday touched a new record low of $14.14, lending credence to the thought that now is an intriguing time to buy. Set to end September with a 13.7% loss, the stock is down more than 31% in 2023.



How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.