PubMatic (NASDAQ:PUBM) Raised to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded PubMatic from “hold” to “buy,” adding to a largely positive analyst outlook. The stock has a consensus “Moderate Buy” rating and an average price target of $19.73, with recent targets ranging from $20 to $24.
• PubMatic’s latest quarterly results exceeded expectations, with adjusted EPS of negative $0.03 versus the consensus estimate of negative $0.18 and revenue of $78.59 million versus $68.95 million expected.
• Shares opened at $18.60, near the company’s 52-week high of $19.19, while insiders have sold substantial holdings recently. The company is also expanding its connected-TV advertising capabilities through a new partnership with Silverpush.

PubMatic (NASDAQ:PUBM - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Saturday, Wall Street Zen reports.

Several other research analysts have also commented on PUBM. Lake Street Capital restated a "buy" rating and set a $20.00 price target on shares of PubMatic in a research report on Friday, August 7th. Craig Hallum started coverage on PubMatic in a research note on Thursday. They set a "buy" rating and a $24.00 target price on the stock. Evercore restated an "outperform" rating and set a $21.00 target price on shares of PubMatic in a report on Monday, August 10th. Citigroup restated an "outperform" rating on shares of PubMatic in a report on Friday, August 7th. Finally, Citizens Jmp lifted their target price on PubMatic from $12.00 to $20.00 and gave the company a "market outperform" rating in a research report on Friday, August 7th. Eleven research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, PubMatic presently has a consensus rating of "Moderate Buy" and a consensus target price of $19.73.

PubMatic Stock Performance

Shares of PUBM opened at $18.60 on Friday. The stock has a 50 day moving average price of $15.88 and a 200 day moving average price of $12.32. PubMatic has a one year low of $6.15 and a one year high of $19.19. The stock has a market capitalization of $847.23 million, a price-to-earnings ratio of -62.00 and a beta of 1.58.

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

Insiders Place Their Bets

In related news, General Counsel Andrew Woods sold 38,331 shares of PubMatic 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 directly owned 39,761 shares in the company, valued at approximately $714,107.56. This trade represents a 49.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Steven Pantelick sold 23,548 shares of the business's stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $13.65, for a total value of $321,430.20. Following the transaction, the chief financial officer directly owned 64,820 shares of the company's stock, valued at $884,793. The trade was a 26.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 597,079 shares of company stock worth $9,729,494 over the last 90 days. Corporate insiders own 27.78% of the company's stock.

Hedge Funds Weigh In On PubMatic

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Renaissance Technologies LLC increased its stake in shares of PubMatic by 26.3% during the first quarter. Renaissance Technologies LLC now owns 1,540,533 shares of the company's stock worth $12,602,000 after buying an additional 321,200 shares during the period. CenterBook Partners LP grew its holdings in PubMatic by 53.3% during the 4th quarter. CenterBook Partners LP now owns 1,147,055 shares of the company's stock worth $10,174,000 after acquiring an additional 398,595 shares in the last quarter. S Squared Technology LLC grew its holdings in PubMatic by 7.7% during the 4th quarter. S Squared Technology LLC now owns 280,972 shares of the company's stock worth $2,492,000 after acquiring an additional 20,000 shares in the last quarter. Quantinno Capital Management LP grew its holdings in PubMatic by 248.0% during the 1st quarter. Quantinno Capital Management LP now owns 206,815 shares of the company's stock worth $1,692,000 after acquiring an additional 147,386 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership purchased a new stake in shares of PubMatic in the 1st quarter valued at approximately $1,687,000. Hedge funds and other institutional investors own 64.26% of the company's stock.

Key Headlines Impacting PubMatic

Here are the key news stories impacting PubMatic this week:

• Positive Sentiment: Craig Hallum initiated coverage of PubMatic with a “buy” rating and a $24 price target, implying approximately 29% upside from the referenced $18.60 price. The endorsement adds to the bullish momentum surrounding the stock. Craig Hallum initiates coverage of PubMatic
• Positive Sentiment: PubMatic and Silverpush launched global, episode-level contextual CTV audience segments. The offering is designed to help advertisers target viewers based on the specific television content they are watching, potentially expanding PubMatic’s CTV advertising opportunity. Silverpush and PubMatic launch contextual CTV segments PubMatic expands show-level CTV targeting
• Neutral Sentiment: PubMatic was highlighted as a high-volume momentum stock after a reported 6.3% advance. Zacks cautioned that the latest earnings-estimate revision trend may not support continued near-term gains, creating a potential headwind for the rally. Zacks analysis of PubMatic momentum
• Neutral Sentiment: Reported short interest stood at zero shares as of September 24, with a zero-day days-to-cover ratio. This suggests little measurable short-selling pressure, but also means limited potential for a short-squeeze-driven catalyst.
• Negative Sentiment: CEO Rajeev Goel sold 50,453 shares for approximately $930,858, reducing his ownership by 50%. The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan, which somewhat reduces its significance as a discretionary bearish signal, but insider selling can still weigh on sentiment. PubMatic CEO SEC Form 4 filing

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.