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Grindr's chief product officer sells $5.56 million in stock

Published 19/12/2024, 22:26
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Austin J. Balance, the Chief Product Officer at Grindr Inc. (NYSE:GRND), executed a significant stock transaction on December 17, 2024. According to a recent SEC filing, Balance sold 332,105 shares of Grindr common stock, generating approximately $5.56 million. The shares were sold at an average price of $16.75, with transactions occurring within a range from $16.51 to $17.08 per share. InvestingPro analysis indicates the stock is trading near its 52-week high of $17.39, having delivered an impressive 106.5% return over the past year, though current valuations suggest the stock may be overvalued.

In addition to the sale, Balance exercised stock options to acquire 315,661 shares at a price of $4.20 per share, totaling approximately $1.33 million. These transactions were part of a pre-established Rule 10b5-1 trading plan adopted on September 17, 2024. Following these activities, Balance now holds 557,414 shares of Grindr common stock. The company, now valued at nearly $3 billion, has shown strong revenue growth of 31.8% over the last twelve months. Discover more insights and 13 additional ProTips with a subscription to InvestingPro, including comprehensive analysis in our Pro Research Report.

In other recent news, Grindr, the online dating platform, has been making notable strides in its financial performance. The company reported a robust 27% year-over-year increase in total revenue, reaching $89 million in its Q3 2024 earnings call. Adjusted EBITDA also saw a significant rise, reaching $40 million, marking a 45% margin. This growth was largely attributed to the success of the Weekly Unlimited subscription and a surge in advertising demand, which saw indirect revenue climb 43% to $12 million.

In terms of user engagement, Grindr reported an 8% growth in monthly active users, reaching 14.6 million. Paying users also saw an increase, rising by 15% to 1.11 million. The company's executives, CEO George Arison and CFO Vanna Krantz, expressed optimism for the future, highlighting user engagement features and a refined ad strategy as key growth drivers.

In addition to these performance highlights, Goldman Sachs (NYSE:GS) initiated coverage on Grindr, issuing a Buy rating and setting a 12-month price target of $20.00 for the company's shares. The firm's analysis indicated confidence in Grindr's potential to achieve a 20% or higher compound annual growth rate (CAGR) in revenue from 2024 to 2029. The price target set by Goldman Sachs was derived from a combination of valuation methodologies, reflecting an equal weighting of these two approaches. These recent developments indicate a positive outlook for Grindr's growth prospects and market potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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