Insider buying can provide valuable trading signals. Insiders sell company stock for many reasons. But they only buy stock for one reason – they expect it to go up.
In this report, we are going to highlight some interesting insider buying at Bumble Inc (BMBL:US). Bumble is the parent company of Badoo and Bumble – two of the world’s highest-grossing dating apps. Founded by CEO Whitney Wolfe Herd in 2014, Bumble was one of the first dating apps built with women at the center. The company is listed on the NASDAQ Global Select Market and currently has a market capitalization of $5.6 billion.
Bumble Inc: Insider Buying
Our insider transaction data shows that on March 17, board member Amy Griffin bought 35,200 BMBL shares at a price of $28.37 per share. This trade cost the insider approximately $1 million and increased the size of her holding to 152,700 shares.
Ms. Griffin has a venture capital background. Currently, she is the Managing Partner of G9 Ventures, an early-stage fund that has invested in Bumble. Meanwhile, she has served on the board of Bumble since February 2020. This background means that she is likely to have an excellent understanding of the company’s intrinsic value.
What stands out about this purchase is that it has increased the size of Ms. Griffin’s holding by around 30%. The fact that the insider has boosted her position by such a large percentage suggests she is very confident that the stock is set to move higher. Our Insider Model views the trade as bullish.
Bumble stock jumped in March after the company’s Q4 2021 results beat estimates.
For the period, revenue amounted to $208.2 million, up 26% year on year, while the total average revenue per paying user (ARPPU) was $22.83, compared to $20.02 a year earlier. Adjusted EBITDA was $54.8 million, or 26.3% of revenue, compared to $44.1 million, or 26.6% of revenue a year earlier.
Looking ahead, management was confident that the company can continue to generate strong growth.
“We finished 2021 with a strong fourth quarter, highlighted by Bumble App's 42% year over year revenue growth and increase of 108,000 paying users quarter over quarter,” said CFO Anu Subramanian. “We expect Bumble App to have another strong year in 2022 and grow revenue 34% to 36% year over year, driven by continued international expansion and product innovation."
Given the growth projections here, we see insider buying as a bullish indicator.