Blend Labs (BLND): Valuation Check After Insider Buying, Q3 Beat, and Institutional Position Shifts
Blend Labs (BLND) has jumped onto investors radar after sizable insider buying coincided with Q3 2025 results that topped expectations, and institutional investors quietly reshuffled their positions around the stock.
See our latest analysis for Blend Labs.
Even after that upbeat Q3 surprise and insider buying, Blend Labs’ share price is still around $3.11, with a 30 day share price return of 11.47% but a 1 year total shareholder return of negative 39.26%, suggesting near term momentum is improving while the longer term picture remains bruised but potentially resetting.
If Blend’s story has you watching for early momentum shifts, this could be a good moment to explore fast growing stocks with high insider ownership as a way to uncover other conviction backed growth ideas.
With shares still trading at a steep discount to analyst targets despite improving growth and margins, are investors overlooking Blend’s turnaround potential, or is the current price already accounting for the next leg of growth?
Most Popular Narrative: 33.5% Undervalued
With Blend Labs last closing at $3.11 versus a narrative fair value of $4.68, the current price implies a sizable valuation gap that hinges on execution.
Ongoing investment and integration of AI driven automation are expected to improve operational efficiency on Blend's platform, reduce customer costs, and drive higher margin software revenues over time, positively impacting net margins and operating income.
Curious what has to happen for this valuation gap to close? The narrative leans on rising margins, disciplined growth, and a future earnings multiple usually reserved for elite software names. Want to see which precise revenue and profit assumptions power that fair value?
Result: Fair Value of $4.68 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, persistent weakness in the mortgage market and reliance on lower margin strategic deals could cap revenue growth and delay the margin inflection that underpins this valuation story.
Find out about the key risks to this Blend Labs narrative.
Another Angle on Value
While the narrative fair value of $4.68 flags Blend Labs as undervalued, our price to sales work paints a tougher picture. At 4.8 times sales versus a 1.6 times peer average and a 2.2 times fair ratio, investors may be paying up today for a lot of future execution. Could sentiment be running ahead of fundamentals?
See what the numbers say about this price — find out in our valuation breakdown.
Build Your Own Blend Labs Narrative
If you see the story differently or want to dig into the numbers yourself, you can build a custom narrative in just a few minutes: Do it your way.
A great starting point for your Blend Labs research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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