<div id="readability-page-1"><div><p>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.</p> <p>See our latest analysis for Blend Labs.</p> <p>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.</p> <p>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.</p> <p>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?</p> <h2>Most Popular Narrative: 33.5% Undervalued</h2> <p>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.</p> <blockquote> <p><em>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.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>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?</p> <p><strong>Result: Fair Value of $4.68 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>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.</p> <p>Find out about the key risks to this Blend Labs narrative.</p> <h2>Another Angle on Value</h2> <p>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?</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/2a4920cc-1f2a-4bd8-8551-e0f0c65091e0/chart/ps-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/2a4920cc-1f2a-4bd8-8551-e0f0c65091e0/chart/ps-multiple-vs-industry"/><figcaption>NYSE:BLND PS Ratio as at Dec 2025</figcaption></figure><h2> Build Your Own Blend Labs Narrative</h2> <p>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.</p> <p>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.</p> <h2>Ready for more investment ideas?</h2> <p>Do not stop with Blend Labs when the Simply Wall Street Screener can surface fresh opportunities tailored to your style, before the rest of the market catches on.</p> <ul> <li>Capture potential multi baggers early by scanning these 3577 penny stocks with strong financials that pair tiny market caps with surprisingly solid financial foundations.</li> <li>Position ahead of the next wave of innovation by reviewing these 26 AI penny stocks that are harnessing artificial intelligence to reshape entire industries.</li> <li>Lock in attractive entry points by targeting these 905 undervalued stocks based on cash flows that the market has mispriced based on future cash flows.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p></div></div>

BLND

<p>Blend Labs (BLND) is under investor scrutiny after insider buying and Q3 results exceeded expectations. Despite a share price of $3.11, it's considered 33.5% undervalued with a fair value of $4.68. The company aims to improve margins through AI-driven automation, but faces challenges in the mortgage market. Investors are advised to explore growth stocks with high insider ownership for potential opportunities.</p>

Blend Labs (BLND): Valuation Check After Insider Buying, Q3 Beat, and Institutional Position Shifts