Match Group (NASDAQ:MTCH) Shares Gap Down on Disappointing Earnings

Match Group, Inc. (NASDAQ:MTCH)’s share price gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $36.47, but opened at $34.90. Match Group shares last traded at $34.36, with a volume of 1,456,832 shares trading hands.

The technology company reported $0.62 earnings per share for the quarter, missing the consensus estimate of $0.84 by ($0.22). Match Group had a negative return on equity of 721.15% and a net margin of 17.86%.

Match Group Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, January 21st. Stockholders of record on Monday, January 6th were issued a $0.19 dividend. This represents a $0.76 annualized dividend and a dividend yield of 2.23%. The ex-dividend date was Monday, January 6th. Match Group’s dividend payout ratio (DPR) is 33.93%.

Match Group declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, December 11th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the technology company to buy up to 19% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s leadership believes its shares are undervalued.

Analyst Ratings Changes

Several equities analysts have recently issued reports on MTCH shares. Truist Financial decreased their price target on shares of Match Group from $35.00 to $34.00 and set a “hold” rating for the company in a report on Thursday, December 12th. New Street Research lowered shares of Match Group from a “buy” rating to a “neutral” rating in a research note on Monday, December 16th. KeyCorp reduced their target price on shares of Match Group from $45.00 to $43.00 and set an “overweight” rating for the company in a research note on Tuesday, November 12th. JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $33.00 target price (down from $40.00) on shares of Match Group in a report on Wednesday, December 18th. Finally, BTIG Research cut shares of Match Group from a “buy” rating to a “neutral” rating in a report on Tuesday, January 14th. Fourteen research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $37.72.

Insider Buying and Selling

In other news, Director Stephen Bailey sold 801 shares of the business’s stock in a transaction that occurred on Friday, November 22nd. The shares were sold at an average price of $31.61, for a total value of $25,319.61. Following the sale, the director now owns 12,398 shares of the company’s stock, valued at $391,900.78. The trade was a 6.07 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 0.77% of the stock is owned by corporate insiders.

Institutional Trading of Match Group

Hedge funds and other institutional investors have recently bought and sold shares of the company. Sanctuary Advisors LLC purchased a new position in Match Group in the 2nd quarter worth approximately $731,000. Czech National Bank grew its holdings in Match Group by 3.8% in the 3rd quarter. Czech National Bank now owns 52,535 shares of the technology company’s stock worth $1,988,000 after acquiring an additional 1,909 shares during the last quarter. Handelsbanken Fonder AB grew its holdings in Match Group by 19.1% in the 3rd quarter. Handelsbanken Fonder AB now owns 63,100 shares of the technology company’s stock worth $2,388,000 after acquiring an additional 10,100 shares during the last quarter. GAMMA Investing LLC lifted its position in shares of Match Group by 114.4% in the 3rd quarter. GAMMA Investing LLC now owns 5,391 shares of the technology company’s stock worth $204,000 after purchasing an additional 2,877 shares during the period. Finally, Fulton Bank N.A. lifted its position in shares of Match Group by 3.1% in the 3rd quarter. Fulton Bank N.A. now owns 10,006 shares of the technology company’s stock worth $379,000 after purchasing an additional 299 shares during the period. Institutional investors own 94.05% of the company’s stock.

Match Group Stock Performance

The company has a market capitalization of $8.54 billion, a PE ratio of 15.34, a PEG ratio of 1.10 and a beta of 1.45. The business’s 50-day moving average is $32.93 and its 200-day moving average is $34.67.

About Match Group

Match Group, Inc engages in the provision of dating products. Its portfolio of brands includes Tinder, Hinge, Match, Meetic, OkCupid, Pairs, Plenty Of Fish, Azar, BLK, and Hakuna, as well as a various other brands, each built to increase users' likelihood of connecting with others. Its services are available in over 40 languages to users worldwide.