PubMatic (NASDAQ:PUBM) Price Target Raised to $24.00

Key Points

• B. Riley raised PubMatic’s price target from $21 to $24 and reiterated a Buy rating, implying 41.3% upside from the prior close.
• Analyst sentiment is broadly positive: 12 analysts rate the stock Buy, one Hold and one Sell; the consensus rating is Moderate Buy with an average target of $21.
• PubMatic reported quarterly EPS of $0.25 and revenue of $79.58 million, beating analyst estimates, while shares fell 10.7% to $16.99 on Tuesday.

PubMatic (NASDAQ:PUBM - Get Free Report) had its price target increased by investment analysts at B. Riley Financial from $21.00 to $24.00 in a report released on Tuesday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. B. Riley Financial's price target indicates a potential upside of 41.26% from the company's previous close.

A number of other research firms have also recently weighed in on PUBM. Scotiabank upgraded PubMatic from a "sector perform" rating to a "sector outperform" rating and raised their price target for the company from $8.00 to $21.00 in a research note on Friday, August 7th. Evercore reiterated an "outperform" rating and set a $21.00 target price on shares of PubMatic in a research note on Monday, August 10th. Jefferies Financial Group upped their price objective on PubMatic from $10.00 to $18.00 and gave the company a "hold" rating in a research note on Tuesday, August 11th. Craig Hallum began coverage on PubMatic in a research report on Thursday, September 24th. They set a "buy" rating and a $24.00 price objective for the company. Finally, Rosenblatt Securities lifted their target price on PubMatic from $23.00 to $25.00 and gave the company a "buy" rating in a research note on Tuesday. Twelve research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $21.00.

PubMatic Stock Down 10.7%

NASDAQ PUBM traded down $2.04 during trading hours on Tuesday, hitting $16.99. 505,244 shares of the company were exchanged, compared to its average volume of 674,616. The company has a 50 day moving average of $17.43 and a two-hundred day moving average of $12.36. PubMatic has a 52-week low of $6.15 and a 52-week high of $19.48. The firm has a market cap of $773.89 million, a price-to-earnings ratio of -56.53 and a beta of 1.59.

PubMatic (NASDAQ:PUBM - Get Free Report) last announced its quarterly earnings data on Monday, November 9th. The company reported $0.25 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.02) by $0.27. The business had revenue of $79.58 million during the quarter, compared to analysts' expectations of $76.09 million. PubMatic had a negative return on equity of 5.41% and a negative net margin of 4.66%. On average, equities research analysts predict that PubMatic will post -0.09 EPS for the current year.

Insider Activity

In related news, CFO Steven Pantelick sold 23,491 shares of the firm's stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $18.97, for a total value of $445,624.27. Following the completion of the sale, the chief financial officer owned 32,526 shares in the company, valued at $617,018.22. This trade represents a 41.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Rajeev K. Goel sold 50,453 shares of PubMatic stock in a transaction that occurred on Thursday, September 24th. The shares were sold at an average price of $18.45, for a total value of $930,857.85. Following the completion of the sale, the chief executive officer directly owned 50,453 shares in the company, valued at $930,857.85. This represents a 50.00% 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. In the last three months, insiders have sold 361,818 shares of company stock valued at $6,481,715. 27.78% of the stock is owned by insiders.

Institutional Trading of PubMatic

Several hedge funds have recently modified their holdings of PUBM. Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of PubMatic during the 3rd quarter worth about $39,000. Versant Capital Management Inc increased its position in PubMatic by 30.4% during the 2nd quarter. Versant Capital Management Inc now owns 10,657 shares of the company's stock worth $140,000 after purchasing an additional 2,482 shares in the last quarter. WINTON GROUP Ltd raised its holdings in PubMatic by 28.0% in the second quarter. WINTON GROUP Ltd now owns 16,900 shares of the company's stock valued at $222,000 after buying an additional 3,700 shares during the period. Hsbc Holdings PLC raised its holdings in PubMatic by 12.2% in the fourth quarter. Hsbc Holdings PLC now owns 64,590 shares of the company's stock valued at $573,000 after buying an additional 7,034 shares during the period. Finally, State of Wyoming purchased a new position in PubMatic in the first quarter valued at approximately $61,000. 64.26% of the stock is owned by institutional investors and hedge funds.

PubMatic News Summary

Here are the key news stories impacting PubMatic this week:

• Positive Sentiment: Quarterly results beat expectations. PubMatic reported Q3 revenue of $79.58 million, above the $76.09 million consensus, and earnings of $0.25 per share, ahead of estimates. The company also said adjusted EBITDA more than doubled year over year and revenue growth accelerated for a third consecutive quarter. PubMatic Q3 results
• Positive Sentiment: Full-year outlook and analyst targets improved. FY 2026 revenue guidance of $312 million–$314 million tops the $308.4 million consensus. Royal Bank of Canada raised its target to $22 and kept an “outperform” rating; Rosenblatt raised its target to $25 and maintained a “buy” rating. Analyst price target update
• Positive Sentiment: Share buyback authorized. PubMatic approved a $150 million share repurchase program, which could support shareholder returns. Share buyback announcement
• Neutral Sentiment: Q4 guidance is close to expectations. The company forecast revenue of $91 million–$93 million, compared with consensus of $91.1 million, offering little near-term upside relative to expectations. Q4 outlook and capital spending
• Negative Sentiment: Higher investment and sector weakness may weigh on sentiment. PubMatic raised its full-year capital expenditure outlook to $24 million–$28 million, which could constrain near-term cash flow. Ad-tech shares were also broadly under pressure, with Trade Desk declining despite beating earnings and revenue estimates. Ad-tech sector trading

About PubMatic

PubMatic, Inc. is a cloud infrastructure and digital advertising technology company that provides solutions for the programmatic advertising industry. Its platform helps publishers, app developers and content creators manage and monetize advertising inventory across websites, mobile applications, connected television and other digital channels. The company operates primarily as a sell-side platform, connecting publishers with advertisers, agencies and demand-side platforms. Its offerings include tools for real-time bidding, yield management, audience targeting, identity solutions, supply-path optimization and header bidding.

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