PubMatic (NASDAQ:PUBM) Stock Price Expected to Rise, Rosenblatt Securities Analyst Says

Key Points

• Rosenblatt Securities raised its PubMatic price target from $23 to $25 and maintained a Buy rating, implying 31.37% potential upside from the stock’s current price.
• PubMatic beat quarterly expectations, reporting $79.58 million in revenue and $0.25 in EPS. The company forecast fourth-quarter revenue of $91 million to $93 million.
• Analysts’ consensus rating is Moderate Buy, with an average price target of $19.91; PubMatic also authorized a $150 million share buyback.

PubMatic (NASDAQ:PUBM - Get Free Report) had its price objective increased by investment analysts at Rosenblatt Securities from $23.00 to $25.00 in a note issued to investors on Tuesday, Benzinga reports. The firm currently has a "buy" rating on the stock. Rosenblatt Securities's target price would indicate a potential upside of 31.37% from the company's current price.

Several other research analysts have also recently weighed in on PUBM. B. Riley Financial boosted their price objective on PubMatic from $17.00 to $21.00 and gave the stock a "buy" rating in a research report on Friday, September 18th. Raymond James Financial raised PubMatic from a "market perform" rating to an "outperform" rating and set a $22.00 target price for the company in a research report on Friday, August 7th. Jefferies Financial Group lifted their target price on PubMatic from $10.00 to $18.00 and gave the stock a "hold" rating in a research note on Tuesday, August 11th. Scotiabank raised shares of PubMatic from a "sector perform" rating to a "sector outperform" rating and boosted their price target for the stock from $8.00 to $21.00 in a report on Friday, August 7th. Finally, Wall Street Zen lowered shares of PubMatic from a "buy" rating to a "hold" rating in a research report on Saturday, October 24th. Eleven equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $19.91.

PubMatic Price Performance

PUBM opened at $19.03 on Tuesday. The company's 50-day moving average is $17.43 and its 200 day moving average is $12.36. PubMatic has a fifty-two week low of $6.15 and a fifty-two week high of $19.48. The firm has a market capitalization of $866.82 million, a P/E ratio of -63.43 and a beta of 1.59.

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

Insider Transactions at PubMatic

In other PubMatic news, General Counsel Andrew Woods sold 10,079 shares of the business's stock in a transaction on Monday, October 5th. The stock was sold at an average price of $18.65, for a total value of $187,973.35. Following the sale, the general counsel directly owned 39,761 shares in the company, valued at $741,542.65. The trade was a 20.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Amar K. Goel sold 10,795 shares of the company's stock in a transaction on Monday, October 5th. The shares were sold at an average price of $18.66, for a total value of $201,434.70. Following the transaction, the chairman directly owned 35,580 shares in the company, valued at $663,922.80. This represents a 23.28% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 361,818 shares of company stock valued at $6,481,715 in the last three months. 27.78% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On PubMatic

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PUBM. Diversified Trust Co lifted its holdings in PubMatic by 64.2% during the third quarter. Diversified Trust Co now owns 28,841 shares of the company's stock valued at $540,000 after purchasing an additional 11,277 shares during the last quarter. Russell Investments Group Ltd. raised its position in shares of PubMatic by 86.1% in the third quarter. Russell Investments Group Ltd. now owns 155,596 shares of the company's stock valued at $2,915,000 after purchasing an additional 71,968 shares during the period. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of PubMatic in the third quarter valued at approximately $39,000. Avestar Capital LLC raised its position in shares of PubMatic by 250.3% in the third quarter. Avestar Capital LLC now owns 192,688 shares of the company's stock valued at $3,609,000 after purchasing an additional 137,688 shares during the period. Finally, WINTON GROUP Ltd lifted its stake in shares of PubMatic by 28.0% during the 2nd 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 in the last quarter. 64.26% of the stock is currently owned by institutional investors.

Key Headlines Impacting PubMatic

Here are the key news stories impacting PubMatic this week:

• Positive Sentiment: PubMatic reported Q3 revenue of $79.58 million, above the $76.09 million analyst estimate, and earnings of $0.25 per share, beating the Zacks consensus of $0.17. The company said revenue growth accelerated for a third consecutive quarter and adjusted EBITDA more than doubled year over year, with both revenue and adjusted EBITDA ahead of its guidance. PubMatic Q3 results
• Positive Sentiment: For Q4, the company forecast revenue of $91 million to $93 million; its full-year outlook was also reported as slightly above expectations. The outlook signals continued growth and could support investor confidence. PubMatic Q4 forecast
• Positive Sentiment: PubMatic authorized a $150 million share buyback, which may signal management confidence and provide support for shareholder returns. The authorization does not guarantee that the full amount will be repurchased. PubMatic buyback
• Neutral Sentiment: The company raised its full-year capital-expenditure forecast to $24 million–$28 million. Investment could support growth, but the higher spending may weigh on near-term cash flow. PubMatic forecast and capital spending

PubMatic Company Profile

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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