Analyst Coverage Change:
KeyBanc, a financial services company, Upgraded the dating app company Bumble to “Overweight” from “Sector Weight”. The “Overweight” rating is generally considered a positive rating indicating that the company’s stock is expected to perform better than the overall market. The target price for Bumble’s stock as of January 10, 2023 is $27 per share.
Bumble stock Analysis
Based on the stock forecasts from 17 analysts, the average target price for Bumble Inc’s stock is USD 28.48 over the next 12 months. This suggests that on average, analysts believe that the stock has the potential to increase in value by around 40% over the next year.
The average analyst rating for Bumble Inc is “Buy”, which indicates that on average, analysts believe that the stock is undervalued and has the potential to generate returns for investors.
Stock Target Advisor, a stock analysis tool, also provides their own analysis of Bumble Inc, which is “Slightly Bullish”. The analysis is based on 11 signals, 6 of them positive and 5 of them negative.
Looking at Bumble Inc’s stock performance over time, it’s closing stock price was USD 20.06. It’s stock price has change by -4.70% over the past week, -14.38% over the past month and -36.26% over the last year. This suggests that the stock has underperformed over the short and medium term, but over a year, the stock has experienced significant decrease in value. It’s important to note that past performance is not indicative of future performance and other factors such as company’s future prospects, economic conditions, and industry performance should be considered before making any investment decisions.
Positive Fundamentals on BMBL:
- High market capitalization: Market capitalization, or market cap, is the total value of a company’s outstanding shares of stock. A high market capitalization typically indicates that a company is large and well-established, which can be a positive sign for investors as these companies tend to be more stable and have a larger operating history.
- Low volatility: Volatility refers to the amount of uncertainty or risk involved with the value of a stock. Low volatility in a stock’s annual returns over a period of at least 12 months can be a positive sign, as it indicates that the stock’s value has been relatively stable and consistent compared to its peers. However, it’s important to note that too much stability may limit potential returns.
- Superior return on equity (ROE): ROE is a measure of a company’s profitability that takes into account how well the company is using its shareholders’ equity to generate profits. A superior ROE, in comparison to its peers, indicates that a company’s management team is effectively utilizing its resources to generate profits, and is often viewed as a positive sign for investors.
- Superior return on assets (ROA): ROA is a measure of how profitable a company is relative to its total assets. Like ROE, a superior ROA compared to peers can indicate that a company’s management is effectively utilizing its resources to generate profits.
- Positive cash flow: Positive cash flow indicates that a company is generating more cash than it is spending, and thus it has more cash available to invest in growth opportunities or return to shareholders.
- Positive free cash flow: Free cash flow is similar to cash flow, but it subtracts out the capital expenditures a company is making to maintain or expand its asset base. Positive free cash flow indicates that a company has enough cash flow to fund its growth and also return money to its shareholders.
Negative Fundamentals oF BMBL:
- Poor risk-adjusted returns: This means that the company’s returns on investment are not as high as other companies in its industry when taking into account the level of risk involved. This can indicate that the company may be taking on too much risk to achieve its returns.
- Below median dividend returns: The company’s average dividend yield over the past 5 years is low compared to its peers. This could be a red flag for investors looking for income from their investments.
- Overpriced on cashflow basis: The company’s stock is trading at a higher price compared to its peers when looking at the price to cash flow ratio. This suggests that the stock may be overvalued and less attractive to buy.
- Highly leveraged: The company has a higher level of debt compared to its equity when compared to other companies in its industry. This can be a sign that the company is taking on too much debt which can put pressure on the company.
- Overpriced on free cash flow basis: The company’s stock is trading at a higher price compared to its peers when looking at the price to free cash flow ratio. This suggests that the company’s future cash flow may not be strong enough to support the current stock price, which can be a negative indicator
About Bumble:
Bumble Inc. is a company that operates in the online dating and social networking industry. The company provides its services primarily in North America and Europe, but also has a presence in other countries around the world. They operate a number of websites and mobile applications that allow users to connect with others and form romantic or platonic relationships. These platforms offer a variety of features and services, such as the ability to send messages, share photos, and search for potential matches. Some of these features may require a subscription or in-app purchase to access.
The company operates two primary dating apps: Bumble and Badoo. Both of these apps have a large user base, with an estimated 40 million people using them on a monthly basis. In addition to these two apps, Bumble Inc. also owns and operates Fruitz, an online dating app targeted towards a specific demographic.
Bumble Inc. was founded in 2014 and is headquartered in Austin, Texas. The company’s mission is to empower users and create a safe and inclusive space for people to connect and build relationships. They strive to create a platform that is free from harassment and hate speech, and encourage users to be respectful and considerate of one another.
