navigating the stock market: a closer look at match group
Insiders initiate significant selling of shares as stock prices decline.
Ever wondered what it'd be like to invest in a goldmine just as it hits rock bottom, and then cash out when it soars? Now, that's a tasty dream, ain't it? Well, there's a trick to that elusive goal: insider trading.
But hey, let's not get into any legal tangles! By insider trading, we mean keeping tabs on the bigwigs close to the action, like executives or board members. They've got the lowdown on a company's ins and outs, and they're just dying to share that intel with you (and their bank account). financially-inclined website TipRanks has been sniffing out bargains like these, and they've got a beauty on their hands.
match made in heaven: the tinder connection
The dating app kingdom's crowning jewel? None other than Tinder, with its parent company, Match Group, reigning supreme. Match Group's portfolio includes tried-and-true apps like OKCupid and Plenty of Fish, and it's currently dominating the world of online dating. The market's still growing - it's expected to swell by 5.5% annually till 2030, according to Grand View Research.
But Match Group's stock is having a rough ride this year, with a tumble of almost 50% since the new year started. 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. Revenue did inch up 12% to $795 million, but it fell short of expectations, and it was also less than the first quarter's revenue.
So, what gives? Last year's pricey acquisition of Hyperconnect from South Korea, which set Match Group back a whopping $1.725 billion, didn't exactly help. To add insult to injury, Tinder's co-founders settled their long-standing legal dispute in December, with Match Group shelling out $441 million. Oh, and Tinder's CEO, Renate Nyborg, took her talents elsewhere, too.
But here's where things get interesting. With a dip like that, would you buy, or would you fly? Well, Bernard Kim, Match Group's CEO, just dropped a whopping $508,000 on nearly 16,000 shares. For the year, analysts expect revenue to grow by over 7% to $3.2 billion, and earnings per share to skyrocket by over 100% to $1.88. Piper Sandler analyst Matt Farrell has even given Match Group an "Overweight" rating, with a target price of $80 - that's a 16% upside!
"We still love this name," says Farrell. "Tinder is still the most downloaded dating app in the world." But hold on - some insiders have been cashing out more than they've been buying. In March 2025, President Gary Swidler sold a whopping 242,209 shares, leaving him with a mere 1,690 shares.
The overall picture? Match Group's stock's been through the ringer, but analysts remain optimistic. However, insider trading activities have shown a major sell-off, which could suggest some insiders are playing it safe. Weigh both positive analyst forecasts and insider activities carefully when deciding where to invest your hard-earned dough.
The financial website TipRanks has discovered an intriguing investment opportunity within Match Group, the parent company of Tinder, a leading player in the online dating industry. Despite a tumble of almost 50% since the beginning of the year, analysts forecast a earnings per share growth of over 100% to $1.88 and revenue growth of over 7% to $3.2 billion for the year. Piper Sandler analyst Matt Farrell has given Match Group an "Overweight" rating, with a target price of $80, indicating a 16% upside. However, insiders have been selling more shares than buying, which might suggest some insiders are playing it safe. Therefore, when deciding where to invest, consider both positive analyst forecasts and insider activities. Additionally, technology companies like Match Group, with a presence in the fast-growing online dating market, could prove to be lucrative investments for investors.
