STUB (NYSE:STUB) Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded STUB from “hold” to “strong sell.” Analyst sentiment is mixed overall, with MarketBeat’s consensus still “hold” and a $9.92 average price target.
• STUB’s latest quarter missed expectations, reporting adjusted EPS of $0.05 versus $0.11 expected and revenue of $501.95 million; revenue nevertheless rose 7.2% year over year.
• Shares opened at $5.59, near their 52-week low of $5.07, while insiders sold nearly 1 million shares in the past three months.

STUB (NYSE:STUB - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Tuesday, Zacks reports.

Several other research firms also recently issued reports on STUB. JPMorgan Chase & Co. dropped their price target on shares of STUB from $11.00 to $8.00 and set a "neutral" rating on the stock in a research note on Wednesday. Bank of America cut shares of STUB from a "neutral" rating to an "underperform" rating and decreased their price objective for the company from $11.00 to $7.50 in a research report on Thursday, August 13th. Evercore set a $14.00 target price on STUB in a research note on Thursday, August 13th. UBS Group set a $7.50 target price on STUB in a research note on Thursday, August 13th. Finally, Oppenheimer dropped their target price on STUB from $12.00 to $11.00 and set an "outperform" rating on the stock in a research report on Thursday, August 13th. Six equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $9.92.

STUB Stock Down 1.1%

Shares of NYSE:STUB opened at $5.59 on Tuesday. The company has a market capitalization of $2.13 billion, a price-to-earnings ratio of -3.88, a price-to-earnings-growth ratio of 0.59 and a beta of 3.44. The company has a 50 day moving average of $5.86 and a two-hundred day moving average of $8.20. STUB has a 52-week low of $5.07 and a 52-week high of $19.86. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.86.

STUB (NYSE:STUB - Get Free Report) last posted its earnings results on Tuesday, November 10th. The company reported $0.05 EPS for the quarter, missing analysts' consensus estimates of $0.11 by ($0.06). The firm had revenue of $501.95 million for the quarter. STUB had a positive return on equity of 1.91% and a negative net margin of 25.29%. The company's quarterly revenue was up 7.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($4.27) earnings per share. As a group, analysts forecast that STUB will post 0.35 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Mark Streams sold 135,589 shares of the company's stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $6.39, for a total value of $866,413.71. Following the sale, the insider directly owned 1,225,976 shares of the company's stock, valued at $7,833,986.64. This represents a 9.96% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Nayaab Islam sold 14,306 shares of the stock in a transaction on Monday, September 14th. The shares were sold at an average price of $6.20, for a total transaction of $88,697.20. Following the transaction, the insider owned 7,996,986 shares in the company, valued at $49,581,313.20. This trade represents a 0.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 991,338 shares of company stock valued at $6,692,030 in the last three months. Corporate insiders own 30.97% of the company's stock.

Institutional Investors Weigh In On STUB

Several hedge funds and other institutional investors have recently modified their holdings of STUB. Stephens Group LLC raised its stake in shares of STUB by 193.2% in the 2nd quarter. Stephens Group LLC now owns 1,022,413 shares of the company's stock valued at $13,158,000 after purchasing an additional 673,715 shares in the last quarter. Pine Ridge Advisers LLC acquired a new position in STUB in the first quarter worth about $4,117,000. Sequoia Financial Advisors LLC acquired a new position in STUB in the second quarter worth about $7,953,000. Rokos Capital Management LLP increased its holdings in STUB by 40.4% in the first quarter. Rokos Capital Management LLP now owns 2,143,423 shares of the company's stock valued at $13,375,000 after buying an additional 616,892 shares during the last quarter. Finally, Bank of America Corp DE increased its holdings in STUB by 396.1% in the first quarter. Bank of America Corp DE now owns 572,790 shares of the company's stock valued at $3,574,000 after buying an additional 457,321 shares during the last quarter.

STUB News Roundup

These are some of the STUB news items that stood out recently:

• Positive Sentiment: StubHub raised its full-year GMS growth guidance to 11%–13%, citing resilient consumer demand. Third-quarter sales and marketing expense also fell by 9 percentage points as a share of revenue, to 45%. Article: StubHub: 3 Key Takeaways for Long-Term Investors
• Negative Sentiment: Q3 adjusted earnings of $0.05 per share fell short of the $0.11 consensus, while revenue of $501.95 million also missed estimates. Revenue was up 7.2% year over year, but the earnings and sales shortfalls appear to be weighing on sentiment. Article: StubHub Q3 Earnings and Revenues Miss Estimates
• Negative Sentiment: Analysts cut their forecasts following the results. JPMorgan lowered its price target to $8 from $11 and kept a neutral rating, reflecting a more cautious view despite the target remaining above the recent share price. Article: Analysts Cut Their Forecasts on StubHub After Weak Q3 Results

STUB Company Profile

StubHub Holdings, Inc. operates online marketplaces that connect buyers and sellers of tickets to live events, including sports, concerts, theater productions and other entertainment. Its platforms allow customers to browse listings, compare ticket options and complete purchases, while sellers can list tickets for sale. The company operates StubHub and viagogo, serving customers in the United States and international markets. Its business grew from StubHub, founded in 2000, and viagogo, which acquired StubHub from eBay in 2020.

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