Newegg commerce: Galkin family buys $5.8M in NEGG stock
Nathan Richardson, a director at Grindr Inc. (NYSE:GRND), recently sold 1,000 shares of the company’s common stock, according to a filing with the Securities and Exchange Commission. The sale comes as Grindr’s stock has surged 66% over the past year, with the company now commanding a market capitalization of $3.53 billion. The shares were sold at an average price of $16.34, totaling $16,340. The stock, currently trading at $16.94, sits near its 52-week high of $19.20 and appears slightly overvalued according to InvestingPro Fair Value analysis. Following this transaction, Richardson holds 17,642 shares of Grindr. The sale was conducted under a Rule 10b5-1 trading plan, which Richardson adopted in May 2024. For deeper insights into insider trading patterns and access to 10+ additional ProTips, explore Grindr’s comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Grindr reported a substantial 35% increase in fourth-quarter revenue for 2024, reaching $98 million, which exceeded the forecasted $91 million. The company’s full-year revenue for 2024 grew by 33% to $345 million. This growth was attributed to both direct and indirect revenue streams, as well as new product innovations and increased user engagement. Additionally, Grindr announced a $500 million share repurchase program, representing about 15% of its market capitalization, which is seen as a positive move toward shareholder returns.
Analysts have responded positively to these developments. Goldman Sachs maintained a Buy rating with a $20 price target, appreciating Grindr’s strong product roadmap and industry-leading margins. Meanwhile, Raymond (NSE:RYMD) James upgraded its price target from $21 to $22, highlighting Grindr’s operational excellence and the strategic significance of the share repurchase program. The company’s guidance for 2025 aligns with market expectations, with a projected revenue growth of 24% or higher and an adjusted EBITDA margin of at least 41%.
Grindr’s management emphasized their focus on a strong product roadmap and goals for 2025, which include expanding the Gayborhood feature and enhancing the brand’s global presence. The company is also investing in AI technology and expanding its engineering team. Despite the positive financial performance, Grindr’s stock experienced a decline in after-hours trading, reflecting potential investor concerns about future growth prospects or market volatility.
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