WEST HOLLYWOOD, CA—Nathan Richardson, a director at Grindr Inc. (NYSE:GRND), has sold 1,000 shares of the company's common stock, according to a recent SEC filing. The shares were sold at a price of $16.58 each, resulting in a total transaction value of $16,580. The transaction comes as Grindr's stock has surged over 90% in the past year, with shares currently trading near their 52-week high of $18.43.
Following this transaction, Richardson retains ownership of 19,642 shares of Grindr. The sale was conducted under a Rule 10b5-1 trading plan, which Richardson adopted on May 15, 2024. This plan allows insiders to set up a predetermined schedule for buying or selling stock, providing an affirmative defense against accusations of insider trading. According to InvestingPro data, Grindr maintains a healthy financial position with a "GOOD" overall health score, and analysts expect the company to turn profitable this year.
Investors and analysts often monitor insider transactions like these for insights into company sentiment and individual executives' perspectives on the company's future performance. For deeper insights into insider trading patterns and comprehensive analysis, InvestingPro subscribers can access detailed financial metrics and 12 additional ProTips about Grindr's valuation and growth prospects.
In other recent news, Grindr, the online dating platform, has been the subject of positive analysis by Goldman Sachs. The firm initiated coverage on the company, issuing a Buy rating and setting a 12-month price target of $20.00 for the company's shares. This coverage is based on Grindr's potential for a 20% or higher compound annual growth rate in revenue from 2024 to 2029, and its ability to continue gaining cost leverage in the forthcoming years.
In more recent developments, Grindr reported robust growth in its third quarter of 2024. The company's total revenue increased by 27% year-over-year, reaching $89 million, with adjusted EBITDA standing at $40 million, marking a 45% margin. The success of the Weekly Unlimited subscription and a surge in advertising demand contributed to this growth, with indirect revenue climbing 43% to $12 million. The company also raised its revenue growth guidance for the year to 29% or more.
Grindr's strong operational execution, impressive revenue growth, and robust gross margin have elicited optimism from both the company's executives and analysts at Goldman Sachs. The firm's analysis presents a constructive view on the stock, suggesting confidence in Grindr's strategic positioning within its niche market. Analyst targets now range from $18 to $21, reflecting broad optimism about the company's trajectory.
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