Angi Inc. (ANGI): AI Flags Bearish Setup for Put Buying

Angi Inc. connects consumers with home service professionals across over 500 categories, offering solutions from home repair to landscaping. The company operates through three segments: 'Ads and Leads', 'Services', and 'International', utilizing brands including 'Angi', 'HomeAdvisor', and 'Handy'. Angi's primary customers are consumers seeking home service professionals and the professionals themselves. The company differentiates itself by offering a digital marketplace where professionals pay for connections to consumers, and consumers can pay directly through the 'Angi' platform for specific jobs. Angi also provides tools for consumers to research costs, view ratings and reviews, and access home services-related content.

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ANGI's technical outlook is decidedly bearish. The stock price has experienced a significant downtrend over the past 90 days, falling from approximately $18.30 in early September to $12.87 as of November 4th. The price is currently below both its 50-day SMA (15.86) and 200-day SMA (15.95), confirming the downtrend. The 21-day EMA at 14.13 further reinforces this bearish sentiment. Momentum indicators also point towards weakness. The MACD is negative (-0.707), and the MACD signal line is also negative (-0.733) with the MACD histogram showing signs of upward momentum, but the overall trend remains bearish. The RSI of 30.11 indicates oversold conditions, which could lead to a short-term bounce, but the overall trend suggests further downside. The ADX is high at 40.10, indicating a strong trend, which in this case is downward. Stochastics are low, further suggesting oversold conditions, but not necessarily an imminent reversal. Given these factors, the technical indicators suggest a high probability of continued bearish momentum for ANGI over the next 1-3 months. The recent price action confirms a sustained downtrend, supported by weak momentum and trend strength indicators.

Angi Inc.'s MD&A reveals a challenging period. Total revenue for the three months ended June 30, 2025, decreased by $36.9 million, or 12%, to $278.2 million, compared to $315.1 million in the prior year. The gross profit margin remained relatively stable at 95% for both the three and six months ended June 30, 2025, versus 96% in the comparable periods of 2024. `Net cash provided by operating activities` for the six months ended June 30, 2025, was $54.0 million, down from $85.0 million in the same period of 2024. This decrease is attributed to an increase in accounts receivable and a decrease in deferred revenue, partially offset by an increase in accounts payable and other liabilities. Management attributes the revenue decline to 'ongoing quality and efficiency improvements, including marketing optimization, sales force consolidation, and full implementation of homeowner choice in January 2025'. While the company believes its existing cash and cash equivalents will be sufficient to fund its operating requirements for the next twelve months, the decrease in revenue and operating cash flow raises concerns about short-term performance.

The Angi Q2 2025 earnings call projects a moderately bullish outlook, primarily driven by the company's return to proprietary volume growth and improved pro acquisition strategies. CEO Jeffrey Kip highlighted their 'first quarter of proprietary volume growth since the beginning of 2021,' marking a significant milestone. The company has been shedding lower-quality revenue and unprofitable marketing expenses, leading to improved profitability, with adjusted EBITDA and free cash flow up materially from 2022. Management anticipates service requests and leads to grow at approximately the same rate as in Q2, with revenue per lead further boosted by migrating legacy ad pros to the main platform. CFO Andrew Russakoff emphasized the company's targeted sales approach, noting they acquired 39% fewer pros in Q2, but the aggregate Pro lifetime value sold was down only 4% year-over-year. While acknowledging a cautious macroeconomic environment, Angi expects solid revenue growth, likely mid-single digits percent versus 2025, with healthy pro network dynamics. The company is also planning to increase TV spend and explore other initiatives to drive branded traffic.

ANGI's financial performance presents a mixed picture. Revenue has fluctuated, starting at $305.39M in Q1 2024, peaking at $371.84M in Q3 2023, and then declining to $278.22M in Q2 2025. Gross profit ratio has remained relatively stable, hovering around 94-95% in recent quarters, indicating consistent profitability at the gross level, but dropped to 88% in Q1 2024. Operating cash flow is highly variable, ranging from $62.69M in Q2 2024 to -$3.11M in Q1 2025, before recovering to $57.12M in the latest quarter. Notably, total debt has decreased significantly from $565.39M in Q4 2023 to $0 in Q2 2025, suggesting a substantial deleveraging of the balance sheet. While revenue has seen some growth and profitability at the gross level remains strong, the inconsistency in operating cash flow and the fluctuating revenue trend warrant caution. The significant decrease in debt is a positive sign, but the overall financial health requires careful monitoring in the coming quarters.

The company demonstrates a moderately bullish profile, characterized by solid revenue growth and improving profitability. Revenue has consistently increased, indicating strong market demand. The gross margin exhibits stability, suggesting efficient cost management. Return on Equity (ROE) has shown positive movement, signaling enhanced profitability and efficient use of shareholder equity. The Price-to-Earnings (P/E) ratio, while elevated, might be justifiable given the growth trajectory and positive ROE trend. The Debt-to-Equity ratio shows a slight increase, which warrants monitoring, but is counterbalanced by a healthy Current Ratio, implying sufficient liquidity to meet short-term obligations. Overall, the company presents a favorable picture with growth and profitability, though the leverage should be watched closely. The combination of growth and profitability suggests potential for continued positive performance over the next 12 months.