Insider Trading Report: Match Group (MTCH)

Bernard Kim, CEO at Match Group (MTCH), recently bought 31,439 shares. The buy increased his stake by 184 percent, and came to a total cost just over $1.08 million.

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  • The last insider buy also came from the CEO last August, with a 16,000 share pickup. Otherwise, one company executive sold following the exercise of stock options, and a company director sold a small position back in March.

    Overall, insiders own about 0.7 percent of shares.

    The dating product company has seen shares drop about 60 percent over the past year. That’s more than twice the 33 percent drop in earnings in the same period, and as revenues dipped by just 2 percent.

    As a result, shares now trade for about 15 times forward earnings, compared to 117 times earnings early last year.

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  • Action to take: Shares are coming off of 52-week lows in the low-$30 range, and could be in for a further long-term rally ahead. Match Group will need to work on increasing its profit margins, as a 9 percent margin for an app business is low for the industry.

    For traders, the rebound underway is likely to continue. The September $45 calls, last going for about $1.65, could see high double-digit returns in the coming months on a further move higher for shares.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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