Top-level corporate executives and board members tend to have a thorough understanding of their firms’ operating and financial activities. If these insiders are buying stock, it’s often worth taking a closer look.
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. The company listed on the NASDAQ via an IPO earlier in the year and currently has a market capitalization of $5.7 billion.
Bumble Inc: Insider Buying
Our data shows that on 26 May, Bumble board member Amy Griffin bought 117,500 BMBL shares at a price of $42.81 per share. This purchase cost the insider approximately $5.0 million.
Venture Capital Background
This insider activity is worth highlighting for a couple of reasons. Firstly, the purchase is substantial in size. It is the largest insider purchase since the IPO and shows a certain level of commitment from the board member.
Secondly, Ms. Griffin has a venture capital background. Currently, she is the Managing Partner of G9 Ventures, an early-stage fund that supports companies that empower consumers to live, look, and feel better (and has an investment in Bumble). She has served on the board of Bumble since February 2020 so she is likely to have a good read on the company’s recent performance and future prospects.
BMBL stock has been caught up in the recent technology sell-off. Since the company’s IPO in February, it has been locked in a downtrend and in late May fell below its IPO price of $43.
Bumble’s recent first-quarter results showed that the company continues to make progress, however. For the period, revenue came in at $171 million, up from approximately $120 million in the same period in 2020. Meanwhile, net earnings were $323.4 million, compared to a loss of around $90 million in Q1 2020. At the end of the quarter, the group had total paying users of 2.8 million, up from 2.2 million at the end of Q1 2020.
On the back of these results, the company raised its full-year guidance. It now expects full-year revenue of around $724 million to $734 million (2020: $582.2 million) along with adjusted EBITDA of $177 million to $182 million (2020: $152.5 million).
In light of these results, we see the insider buying here as bullish. It suggests that Ms. Griffin expects Bumble stock to rebound.