Roth Capital Believes The Meet Group Inc (NYSE MKT: MEET) Won’t Stop Here

By Ryan Adsit

In a report released yesterday, Darren Aftahi from Roth Capital maintained a Buy rating on The Meet Group Inc (MEETResearch Report), with a price target of $8. The company’s shares closed yesterday at $5.55, close to its 52-week high of $6.

Aftahi commented:

“We do not see this as a negative data point, and would use any weakness as a buying opportunity as MEET remains a favorite of ours with numerous growth catalysts in 2019 and a solid risk/reward tradeoff at current levels. MEET CEO Sells ~225K shares as part pre-set of 10b5-1 trading plan. MEET CEO Geoff Cook recently sold ~225K shares as part of a pre-established 10b5-1 trading plan for estate planning and diversification purposes. Under this agreement, Mr. Cook has ~75K remaining shares to be sold under the plan (~300K in aggregate). Mr. Cook made a similar divestiture last year and currently still holds ~831K shares. As such, we do not see the planned sale as a negative data point for MEET’s fundamental outlook and remain buyers of shares, especially on any negative immediate term impact from the insider selling.”

According to TipRanks.com, Aftahi is a 5-star analyst with an average return of 11.5% and a 55.7% success rate. Aftahi covers the Technology sector, focusing on stocks such as Digital Turbine Inc, Mitek Systems Inc, and RumbleON Inc.

The Meet Group Inc has an analyst consensus of Moderate Buy, with a price target consensus of $7.50, representing a 35.1% upside. In a report issued on January 10, Canaccord Genuity also reiterated a Buy rating on the stock with a $7 price target.

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Based on The Meet Group Inc’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $1.3 million. In comparison, last year the company had a GAAP net loss of $67.74 million.

Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MEET in relation to earlier this year.

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The Meet Group, Inc. engages in the provision of mobile social entertainment apps designed for human connections. Its primary apps include MeetMe, LOOVOO, Skout, and Tagged. It operates through the mobile platforms like iPhone, Android, iPad and other tablets. The company was founded by Jeffrey Scott Peterson in June 1997 and is headquartered in New Hope, PA.