Zachary Katz Sells 13,781 Grindr Shares, Stock Declines

Zachary Katz, an insider at Grindr Inc. (NYSE:GRND), sold a total of 13,781 shares of the company’s stock on November 13, 2023. The shares were sold at an average price of $14.39, resulting in a total transaction value of $198,308.59. Following this sale, Katz now holds 490,520 shares of Grindr, amounting to an estimated value of $7,058,582.80. This sale represents a 2.73% decrease in his overall position within the company.

The transaction was officially disclosed in a filing with the Securities and Exchange Commission. This type of disclosure is standard practice for insider trades, ensuring transparency in the market.

On the following day, Grindr’s stock experienced a decline, closing at $14.02, down $0.37 or 2.5%. The trading volume for the day reached 1,881,833 shares, slightly below the average of 2,017,556 shares.

Grindr’s financial metrics indicate a current ratio of 0.82, a quick ratio of 0.82, and a debt-to-equity ratio of 3.73. Over the past year, the stock has fluctuated between a low of $11.73 and a high of $25.13. Currently, the 50-day moving average price stands at $14.45, while the 200-day moving average is $18.54. The company has a market capitalization of approximately $2.69 billion and a price-to-earnings ratio of -37.88.

Market Analysts Review Grindr’s Outlook

Market analysts have recently offered insights into Grindr’s stock performance. On October 18, Wall Street Zen downgraded the shares from a “buy” rating to a “hold.” Following this, Citizens JMP adjusted its price target from $23.00 to $21.00 while maintaining a “market outperform” rating.

Weiss Ratings expressed a more cautious stance, restating a “sell (d-)” rating on October 8. Other analysts, including JMP Securities and Raymond James Financial, also adjusted their price targets downward. JMP Securities reduced its target from $27.00 to $23.00, while Raymond James lowered its target from $26.00 to $20.00. Currently, five analysts rate the stock as a Buy, while one has assigned it a Sell rating. According to MarketBeat.com, Grindr holds a consensus rating of “Moderate Buy” with an average target price of $22.50.

Institutional Investor Activity

Institutional investment in Grindr has seen notable changes recently. CWM LLC significantly increased its holdings by 838.5% in the first quarter, now owning 1,924 shares valued at $34,000. Similarly, EverSource Wealth Advisors LLC raised its stake by 1,473.4% in the second quarter, acquiring 1,479 shares worth $34,000.

Other institutional investors, including Raymond James Financial Inc. and Aster Capital Management DIFC Ltd, have also acquired new stakes in Grindr, with Aster Capital boosting its stake by 190.7% in the third quarter. This heightened interest from institutional investors reflects a growing acknowledgment of Grindr’s potential within the market. Currently, institutional investors and hedge funds collectively own 7.22% of the company’s stock.

Grindr Inc. operates as a social networking and dating platform tailored for the lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities globally. The company provides both an ad-supported service and a premium subscription option, enabling users to connect, share experiences, and express themselves within a supportive environment.

As the market continues to evolve, the performance of Grindr and the implications of recent insider sales will be closely monitored by investors and analysts alike.