Insiders are increasingly selling their shares, as the company's stock experiences a significant decline.
A golden investment opportunity? Dropping stocks and insider trading tricks could be your key to striking it rich.
Sneaking a peek at the insider circles is a popular strategy for investors aiming to score a winning stock. These players, like executives and board members, have premium information about a company's inner workings. Luckily, financial analysis website TipRanks has been digging for stocks that took a dive this year but are now seeing a resurgence. One that has caught our eye:
Match Group - Love brewing in the App Market
The globally recognized powerhouse behind the world's most downloaded, revenue-generating, and inherently popular dating app, Tinder, is none other than Match Group. The company also boosts an impressive collection of other apps like OKCupid and Plenty of Fish. Despite the online dating market's ongoing expansion – expected to grow at a CAGR of 5.5% by 2030 – Match Group's stock hasn’t exactly danced to a cheerful tune this year.
The stock has astoundingly dropped a whopping 50% since the start of the year. During the second quarter, which concluded on June 30, the corporation reported a loss of $0.11 per share, in stark contrast to $0.46 per share a year ago. Although revenue surged by 12% to $795 million, it failed to meet predictions and underperformed the first quarter's revenue.
The blame for this slump can be pinned on Match Group's expensive acquisition of Hyperconnect from South Korea, their priciest acquisition ever at $1.725 billion. To add fuel to the fire, in December, an old legal dispute of Tinder's founders got settled with a hefty payment of $441 million. To top it all off, Tinder's CEO, Renate Nyborg, recently bid the company farewell.
However, this dramatic decline in the stock value could spell good news for aspiring investors: Last week, Bernard Kim, Match Group's CEO, scooped up approximately 16,000 shares. For the year, analysts predict revenue to grow beyond 7% to $3.2 billion, and earnings per share to surge more than 100% to $1.88. Matt Farrell, analyst at Piper Sandler, remains bullish: "We continue to find this name appealing as online dating is here to stay, and Match Group is the name to own in this domain. Tinder still retains the crown as the world's most downloaded dating app." His rating: Overweight! Target price: $80 – currently indicating a potential 16% increase.
In steering your investing decisions, TipRanks delves into the recent trends, insider purchases, and analyst forecasts regarding Match Group stock:
- Stock Momentum: Match Group's stock has exhibited turbulence, wrapping up at $29.25 on May 16, 2025[1].
- Recent Drop: The stock has taken a substantial hit in recent times, plummeting over 10% in the past week, trading close to its 52-week low of $26.39[3].
- Short-term Fluctuation: The stock has recorded a loss of 4.69% over the last fortnight, with a swing in trading volume[5].
The analyst community presents a mixed bag of opinions, with price targets being revised by some, yet others keep their "Buy" rating intact[4][3]. However, there are concerns about the app's ability to effectively engage and monetize users due to trends like declining monthly active users (MAUs) and paying users (Payers)[3].
Recent insider purchases haven't been indicated, although these signals can reflect positive sentiment regarding the company's future.[ Thompson] Nonetheless, the absence of data makes it challenging to determine their impact on investment decisions.
The investment decision in Match Group stock remains a gamble given the recent slump, challenges in user trends, as well as mixed analyst opinions. Yet, Match Group holds strong financial fundamentals and analysts still look optimistic. It's vital to do thorough research to assess both the potential growth and the current hurdles before jumping onto the investment bandwagon.
- The dramatic decline in Match Group's stock could provide a potential opportunity for individuals interested in personal-finance and investing, as suggested by analyst Matt Farrell, who remains bullish on Match Group's position in the online dating domain and forecasts a 16% increase in the stock price.
- Analyzing the insider trading activities, such as the recent purchase of approximately 16,000 shares by Match Group's CEO Bernard Kim, could be a crucial factor for finance-minded individuals to evaluate when making a decision about investing in Match Group stock.
