Analysts: Match Group, Inc. (MTCH) Has Outsized Upside Potential

On a downside, Match Group, Inc. (NASDAQ:MTCH) is likely to find some support, which begins at $38.22. On the upside, the stock will test short term resistance at around $42.89. The failure to get near-term support could push it to $35.28. Its 50 day simple moving average (SMA 50) price is $48.25 and its 200-day simple moving average (SMA 200) price is $45.06. The company’s stock currently has a total float of 51.19M shares. Its weekly volatility is hovering around 6.51% and felt 5.66% volatility in price over a month.

MTCH stock has been range bound between the range of $37 and $37 during the whole day. The stock finished Thursday at $41.17. The 7.16% uptrend helped its market value to reach at $11.76B. The price went up as high as $37 before retreating. Trading activity significantly improved as the volume at ready counter increased to 4,140,612 shares versus 3,745,810 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,536,047 shares. The stock is now 54.54% above against its bear-market low of $26.64 on December 12, 2017. It has retreated -48.04% since it’s 52-week high of $60.95 reached in September. Now the market price is up 52.69% on the year and up 38.16% YTD.

Separately, it has been reported that multiple insider activity took place at Match Group, Inc. (MTCH). CFO, Match Group Swidler Gary sold 105,611 shares for $63,090 in transaction occurred on 2018/08/23. After making this transaction, the CFO, Match Group owns a direct stake of 5,235,137 shares, worth $2,597,415, as per the last closing price. On 2018/08/21 Ginsberg Amanda, CEO at MTCH, dumped 11,196 shares at an average price of $48.78 per share. The selling total is valued at $796,598.

General Counsel, Sine Jared F. had divested 27,343 shares for $2,522 through a trade on 2018/08/20. Following this activity, the insider holds 1,326,409 shares worth $103,831 as of recent close. Wall Street’s most bullish Match Group, Inc. (NASDAQ:MTCH) analysts are predicting the share price to blow past $62 per share during the next 12 months. The current median share price forecast by them is $52, suggesting that the stock could increase 26.31% in that time frame. The average price target of $51.47 calls for a nearly 25.02% increase in the stock price.

It had seen a new analyst call from Macquarie, which initiated the stock at Outperform on November 29. Analysts at Aegis Capital, maintained the company shares at Buy on November 09 but switched target price from $65 to $62. Brokerage firm Aegis Capital, looks cautious as they stick to prior recommendation of Buy, in a call on September 12. However, they did change the target price from $55 to $65. Jefferies analysts came out with bullish views on June 11 when the call was made. They think the stock is now Buy compared to to their prior call for Hold.

When looking at valuations, Match Group, Inc. (MTCH) has a cheap P/E of 26.56x as compared to industry average of 36.8x. Moreover, it trades for 24.45 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 17.9x price/book and 7.12x price/sales. Compared to others, Match Group, Inc. is in a different league with regards to profitability, having net margins of 21.4%. To put some perspective around this, the industry’s average net margin is 3.06%. MTCH’s ROE is 63.1%, which is also considerably better than the industry’s ROE of 19.22%. It’s also very liquid in the near term, with a current ratio of 1.6. The stock has a debt/capital of 1.97.

Shares of Match Group, Inc. (MTCH) have dropped -25.4% since the company’s last earnings report. Over the past 12 fiscal quarters, Match Group, Inc. (NASDAQ:MTCH) has topped consensus earnings estimates in 6 quarters (50%), missed earnings in 5 quarters (41%), whereas at 1 occasion EPS met analyst expectations. MTCH last reported earnings on November 06, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.39 per share, -95.68% change on the same period last year. That was better than consensus for $0.36. Revenue for the recent quarter stood at $443.94 million, up 29% on last year and above the $438.12 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $441 million to $455 million, which should be compared with $417 million generated last year. EPS is seen in a range of $0.34 to $0.43, against the $0.37 reported a year ago.