Match Group (NASDAQ:MTCH) Shares Gap Down Following Weak Earnings

Shares of Match Group, Inc. (NASDAQ:MTCH) 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.

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 net margin of 17.86% and a negative return on equity of 721.15%.

Match Group Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 17th. Stockholders of record on Thursday, April 3rd will be issued a $0.19 dividend. This represents a $0.76 annualized dividend and a dividend yield of 2.20%. The ex-dividend date of this dividend is Thursday, April 3rd. Match Group’s payout ratio is 37.62%.

Match Group declared that its Board of Directors has authorized a stock buyback plan on Wednesday, December 11th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the technology company to buy up to 19% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on MTCH shares. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $33.00 target price (down from $40.00) on shares of Match Group in a research note on Wednesday, December 18th. New Street Research downgraded shares of Match Group from a “buy” rating to a “neutral” rating in a research note on Monday, December 16th. Morgan Stanley raised their target price on shares of Match Group from $32.00 to $33.00 and gave the company an “equal weight” rating in a research note on Thursday. Truist Financial cut their target price on shares of Match Group from $35.00 to $34.00 and set a “hold” rating for the company in a research note on Thursday, December 12th. Finally, BTIG Research downgraded shares of Match Group from a “buy” rating to a “neutral” rating in a research note on Tuesday, January 14th. Fifteen investment analysts have rated the stock with a hold rating, nine have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $37.68.

Insider Activity

In related news, Director Stephen Bailey sold 801 shares of Match Group 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 transaction, the director now directly owns 12,398 shares of the company’s stock, valued at $391,900.78. This trade represents a 6.07 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.77% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in MTCH. Starboard Value LP bought a new position in Match Group in the third quarter valued at approximately $361,605,000. Retirement Systems of Alabama increased its stake in Match Group by 2,732.1% in the third quarter. Retirement Systems of Alabama now owns 1,659,718 shares of the technology company’s stock valued at $62,804,000 after acquiring an additional 1,601,115 shares during the last quarter. Seizert Capital Partners LLC increased its stake in Match Group by 468.6% in the fourth quarter. Seizert Capital Partners LLC now owns 1,481,967 shares of the technology company’s stock valued at $48,475,000 after acquiring an additional 1,221,347 shares during the last quarter. KBC Group NV increased its stake in Match Group by 3,325.7% in the fourth quarter. KBC Group NV now owns 1,122,906 shares of the technology company’s stock valued at $36,730,000 after acquiring an additional 1,090,127 shares during the last quarter. Finally, Pacer Advisors Inc. increased its stake in Match Group by 17.0% in the fourth quarter. Pacer Advisors Inc. now owns 6,475,636 shares of the technology company’s stock valued at $211,818,000 after acquiring an additional 939,078 shares during the last quarter. 94.05% of the stock is owned by institutional investors.

Match Group Stock Up 3.0 %

The business’s 50 day simple moving average is $32.95 and its two-hundred day simple moving average is $34.66. The stock has a market cap of $8.69 billion, a P/E ratio of 15.44, 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.