Match Group (NASDAQ:MTCH) Shares Gap Down After Earnings Miss

Match Group, Inc. (NASDAQ:MTCH)’s stock price gapped down before the market opened on Wednesday following a weaker than expected 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 EPS 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 Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 17th. Investors of record on Thursday, April 3rd will be given a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 2.26%. The ex-dividend date is Thursday, April 3rd. Match Group’s dividend payout ratio is currently 33.93%.

Match Group announced that its Board of Directors has initiated a stock repurchase program on Wednesday, December 11th that allows the company to repurchase $1.50 billion in shares. This repurchase authorization allows the technology company to purchase up to 19% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

Analyst Ratings Changes

Several analysts have commented on MTCH shares. Wells Fargo & Company dropped their target price on shares of Match Group from $33.00 to $32.00 and set an “equal weight” rating on the stock in a report on Thursday, December 12th. StockNews.com lowered shares of Match Group from a “buy” rating to a “hold” rating in a research note on Friday, November 15th. Evercore ISI cut their price target on shares of Match Group from $37.00 to $35.00 and set an “outperform” rating on the stock in a research report on Friday, December 13th. Susquehanna decreased their price objective on Match Group from $45.00 to $40.00 and set a “positive” rating for the company in a report on Friday, November 8th. Finally, Truist Financial reduced their price target on Match Group from $35.00 to $34.00 and set a “hold” rating for the company in a research report on Thursday, December 12th. Fourteen investment analysts have rated the stock with a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, Match Group has an average rating of “Moderate Buy” and a consensus target price of $37.72.

Insider Buying and Selling at Match Group

In other Match Group news, Director Stephen Bailey sold 801 shares of Match Group stock in a transaction on Friday, November 22nd. The stock was sold at an average price of $31.61, for a total value of $25,319.61. Following the completion of the transaction, the director now directly owns 12,398 shares of the company’s stock, valued at $391,900.78. The trade was a 6.07 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.77% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Starboard Value LP acquired a new stake in Match Group during the third quarter worth about $361,605,000. Versor Investments LP lifted its holdings in shares of Match Group by 301.7% during the 3rd quarter. Versor Investments LP now owns 48,200 shares of the technology company’s stock worth $1,824,000 after acquiring an additional 36,200 shares during the period. Paloma Partners Management Co boosted its position in shares of Match Group by 510.3% during the 3rd quarter. Paloma Partners Management Co now owns 65,086 shares of the technology company’s stock worth $2,463,000 after acquiring an additional 54,422 shares in the last quarter. Aviance Capital Partners LLC bought a new position in Match Group in the third quarter valued at approximately $2,170,000. Finally, Mawer Investment Management Ltd. raised its position in Match Group by 71.4% during the third quarter. Mawer Investment Management Ltd. now owns 643,335 shares of the technology company’s stock valued at $24,344,000 after purchasing an additional 267,890 shares in the last quarter. Institutional investors own 94.05% of the company’s stock.

Match Group Stock Down 7.9 %

The firm has a 50 day simple moving average of $32.93 and a two-hundred day simple moving average of $34.67. The stock has a market capitalization of $8.43 billion, a P/E ratio of 14.99, a PEG ratio of 1.10 and a beta of 1.45.

Match Group Company Profile

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.