B. Riley Financial Forecasts Strong Price Appreciation for PubMatic (NASDAQ:PUBM) Stock

Key Points

• B. Riley Financial raised PubMatic’s price target from $17 to $21 and maintained a “buy” rating, implying 21.18% upside. Analysts overall assign the stock a “Moderate Buy” consensus rating with an average target of $19.30.
• PubMatic exceeded quarterly expectations, reporting an adjusted loss of $0.03 per share versus the expected $0.18 loss and revenue of $78.59 million versus the $68.95 million consensus estimate.
• Insiders sold heavily, including the CEO’s sale of more than 211,000 shares; insiders sold 538,626 shares worth $8.66 million over the past 90 days. Institutional investors own 64.26% of the company.

PubMatic (NASDAQ:PUBM - Get Free Report) had its target price upped by equities research analysts at B. Riley Financial from $17.00 to $21.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm currently has a "buy" rating on the stock. B. Riley Financial's target price indicates a potential upside of 21.18% from the company's current price.

Several other equities research analysts have also recently commented on PUBM. Lake Street Capital reaffirmed a "buy" rating and issued a $20.00 target price on shares of PubMatic in a research report on Friday, August 7th. Wall Street Zen cut PubMatic from a "buy" rating to a "hold" rating in a research report on Saturday, September 5th. Citigroup reissued an "outperform" rating on shares of PubMatic in a research report on Friday, August 7th. Evercore restated an "outperform" rating and set a $21.00 price target on shares of PubMatic in a research report on Monday, August 10th. Finally, Rosenblatt Securities raised their price objective on PubMatic from $21.00 to $23.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Ten investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $19.30.

PubMatic Stock Performance

NASDAQ PUBM opened at $17.33 on Friday. The stock has a market cap of $789.38 million, a P/E ratio of -57.76 and a beta of 1.58. PubMatic has a fifty-two week low of $6.15 and a fifty-two week high of $19.19. The stock has a 50 day simple moving average of $15.34 and a two-hundred day simple moving average of $11.95.

PubMatic (NASDAQ:PUBM - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.18) by $0.15. The firm had revenue of $78.59 million for the quarter, compared to analysts' expectations of $68.95 million. PubMatic had a negative return on equity of 5.41% and a negative net margin of 4.66%. Sell-side analysts predict that PubMatic will post -0.09 earnings per share for the current year.

Insiders Place Their Bets

In other PubMatic news, CEO Rajeev K. Goel sold 211,302 shares of PubMatic stock in a transaction on Friday, August 7th. The stock was sold at an average price of $17.74, for a total value of $3,748,497.48. Following the completion of the sale, the chief executive officer owned 31,692 shares of the company's stock, valued at approximately $562,216.08. This trade represents a 86.96% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Andrew Woods sold 38,331 shares of the business's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $17.96, for a total value of $688,424.76. Following the completion of the transaction, the general counsel owned 39,761 shares of the company's stock, valued at $714,107.56. This represents a 49.08% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 538,626 shares of company stock valued at $8,664,396. Insiders own 27.78% of the company's stock.

Institutional Investors Weigh In On PubMatic

Institutional investors have recently modified their holdings of the business. WINTON GROUP Ltd increased its holdings in PubMatic by 28.0% in the 2nd quarter. WINTON GROUP Ltd now owns 16,900 shares of the company's stock worth $222,000 after buying an additional 3,700 shares in the last quarter. Squarepoint Ops LLC boosted its holdings in shares of PubMatic by 168.8% during the 2nd quarter. Squarepoint Ops LLC now owns 62,137 shares of the company's stock valued at $815,000 after acquiring an additional 39,023 shares during the last quarter. Public Employees Retirement System of Ohio purchased a new stake in shares of PubMatic during the 2nd quarter valued at about $872,000. Pinnacle Holdings LLC bought a new stake in shares of PubMatic in the second quarter worth approximately $2,076,000. Finally, Bank of New York Mellon Corp bought a new stake in shares of PubMatic in the second quarter worth approximately $1,595,000. 64.26% of the stock is owned by hedge funds and other institutional investors.

About PubMatic

PubMatic, Inc NASDAQ: PUBM operates a cloud infrastructure platform that helps digital publishers and app developers manage and monetize advertising inventory. Its sell-side platform connects publishers with advertisers, agencies and demand-side platforms, enabling automated buying and selling of digital advertising.

The company's solutions support advertising across the open internet, including websites, mobile applications, connected television, online video and digital out-of-home environments.

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