Insiders have initiated selling actions as stock prices decline.
Riding the Match Wave: Get ready to cash in on the dating app titan, Match Group (MTCH), as it bounces back from a rocky start!
Picture this: Every investor's wildest dream – buying a stock during a dip and selling it at a peak. It's tough, but with a little help from insider trading, it can become a reality. By this, we mean tracking the buying trends of those close to the action, such as executives or board members. They have inside knowledge of a company's inner workings and secrets.
Financial analysis website, TipRanks, has been on the hunt for stocks that experienced a significant downturn this year yet are now attracting interest. One company stands out:
Match Group: Swipe Left on the Downturn, Swipe Right on the Comeback
You've probably heard of Tinder – the hugely popular dating app ruling the roost. It's owned by none other than the Match Group, which also runs a slew of other apps like OKCupid and Plenty of Fish worldwide. Despite the global online dating market's projected growth – expected to grow by around 5.5% per year until 2030 by Grand View Research – Match Group's stock hasn't had the smoothest sail this year.
The stock is down roughly 50% since the beginning of the year. In the second quarter, which ended on June 30, the company reported a loss of $0.11 per share, compared to $0.46 per share a year ago. Despite posting a 12% year-over-year revenue growth to $795 million, the company missed market expectations and fell short of its first quarter's revenue.
What caused this dip? According to TipRanks, the expensive acquisition of Hyperconnect from South Korea, Match Group's biggest acquisition to date at $1.725 billion, and the $441 million settlement paid to Tinder's founders in December, both played a role. Moreover, Tinder's CEO, Renate Nyborg, recently bid the company adieu.
However, with the stock's nearly 50% decline since the start of the year, the time for smart investors to pounce may be now. Last week, Match Group CEO Bernard Kim bought around 16,000 shares. For the entire year, analysts expect revenue growth to surpass seven percent to $3.2 billion and a gain of over 100% in earnings per share to $1.88. Matt Farrell, analyst at Piper Sandler, is hopeful: "We're fans of this name as online dating isn't going anywhere, and this is the name to own in this space. Tinder continues to be the most downloaded dating app in the world." His rating? Overweight! Target price? $80 – that's a potential 16% increase.
[1] Yahoo Finance data.[2] Google Finance data.[3] Zacks Investment Research data.[4] Coincodex data.[5] MarketWatch data.
- TipRanks, a financial analysis website, has identified Match Group (MTCH) as a stock that has experienced a significant downturn this year but is now attracting interest.
- Match Group, the company that owns Tinder, has had a rocky start this year with its stock down roughly 50% since the beginning of the year.
- Despite the global online dating market's projected growth and a 12% year-over-year revenue growth to $795 million, Match Group missed market expectations and fell short of its first quarter's revenue.
- Bernard Kim, Match Group's CEO, recently bought around 16,000 shares, hinting at a potential buying opportunity for smart investors.
