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5 Investors Betting Big on Match (MTCH) Stock

  • Match Group (MTCH) reported Q3 revenue of $810 million, beating the estimate of $793 million by 2.1%.
  • BlackRock (BLK) is the largest shareholder of the company.
  • Shares of MTCH stock are down over 60% year-to-date.
MTCH stock - 5 Investors Betting Big on Match (MTCH) Stock

Source: T. Schneider / Shutterstock

Shares of Tinder’s parent company Match Group (NASDAQ:MTCH) are up by over 5% after the company reported its third-quarter earnings. Revenue tallied in at $810 million, up by 1% year-over-year and by 10% on a constant currency basis. Revenue also beat the average analyst estimate of $793 million by 2.1%. Furthermore, diluted earnings per share (EPS) was 44 cents, falling short of the estimate of 64 cents. Meanwhile, total paying members grew to 16.5 million, up 2% YOY from 16.3 million.

For Tinder, direct revenue grew by 6% or 16% on a constant currency basis, driven by a paying members growth of 7%. All of Match’s other dating brands experienced a direct revenue decline of 5% due to an 8% decrease in paying members. On the bright side, Hinge’s direct revenue grew by almost 40% YOY. Throughout 2022, Match has generated a total of $262 million of free cash flow. This was negatively impacted by a $441 million Tinder settlement payment during Q2.

CEO Bernard Kim added:

“Because we expect a challenging operating environment for the foreseeable future, we plan to accelerate our efforts to control costs, especially in headcount-related expenses and marketing spend, in other areas of the business.”

For Q4, Match expects revenue between $780 million and $790 million. For 2023, the company expects to grow overall revenue and Tinder direct revenue by between 5% to 10%. In addition, Hinge is expected to add “at least” $100 million of direct revenue.

With that in mind, let’s take a look at the investors betting big on MTCH stock.

5 Investors Betting Big on MTCH Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q2, 689 13F filers reported owning MTCH, a decline of 30 filers from the previous quarter. On top of that, the institutional put/call ratio sits at 1.21, down from 1.25 during Q1. That’s equivalent to 6.38 million calls and 7.68 million puts, implying a bearish options stance. So, who are Match’s top shareholders?

  1. BlackRock (NYSE:BLK): 32.20 million shares. BlackRock purchased 4.64 million shares during Q2.
  2. Vanguard: 30.60 million shares. Vanguard purchased 1.44 million shares during Q2.
  3. T. Rowe Price (NASDAQ:TROW): 16.24 million shares. T. Rowe purchased 827,025 shares during Q2.
  4. Edgewood Management: 15.52 million shares. Edgewood sold 1.19 million shares during Q2.
  5. State Street (NYSE:STT): 11.75 million shares. State Street sold 732,775 shares during Q2.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/11/5-investors-betting-big-on-match-mtch-stock/.

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