Match Stock Gains After Letter From Activist Investor

Match Group, Inc. MTCH shares are trading higher Tuesday after activist-investment fund Starboard Value sent a letter to the company outlining initiatives for improving growth, profitability and capital allocation.

The Details:

Starboard Value sent a letter to Match Group’s CEO, CFO, president and board of directors regarding actionable opportunities for enhancing shareholder value. Starboard Value holds a 6.6% stake in the company, making it the third-largest shareholder. 

Starboard said in the letter that Match Group should concentrate on enhancing Tinder, which contributes more than half of the company's total revenue, through product innovation and cost reductions. Starboard also sees potential in the Hinge business and Match Group's other emerging apps.

Additionally, Starboard advocated for more aggressive share buybacks by Match Group. If these changes are not implemented successfully, Starboard suggested that Match Group should consider going private.

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Match Group shares have declined by approximately 12% year-to-date. The company reported its first quarter results in May with revenue of$787.12 million, missing the consensus of $793.87 million and representing a 2% decline from the same period last year.

According to data from Benzinga Pro, Match Group shares are moving on heavy volume Tuesday and trading above the stock’s 50-day moving average of $30.79.

Will MTCH Stock Go Up?

When trying to assess whether or not Match Group will trade higher from current levels, it's a good idea to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $37.92 on Match Group. The Street high target is currently at $46 and the Street low target is $30. Of all the analysts covering Match Group, 8 have positive ratings, 4 have neutral ratings and no one has negative ratings.

In the last month, 3 analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Match Group have performed in recent history.

Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Match Group is 28.53% down year-to-date. The average analyst price target suggests the stock could have further upside ahead.

For a broad overview of everything you need to know about Match Group, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.

MTCH Price Action: According to Benzinga Pro, Match Group shares are up 8.65% at $34.79 at the time of publication Tuesday.

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