Bank of America Reiterates "Underperform" Rating for STUB (NYSE:STUB)

Key Points

• Bank of America reaffirmed its “underperform” rating on STUB and cut its price target from $11.00 to $7.50, implying 11.56% downside from the prior close.
• Analyst sentiment is mixed, with four buy, seven hold, and two sell ratings producing an overall “hold” consensus and an average price target of $10.44.
• STUB reported quarterly EPS of $0.06 versus expectations for a $0.01 loss, while revenue rose 12.2% year over year to $446.05 million; insiders sold $2.29 million of stock during the last quarter.

STUB (NYSE:STUB - Get Free Report)'s stock had its "underperform" rating reaffirmed by investment analysts at Bank of America in a research note issued on Thursday,Benzinga reports. They currently have a $7.50 price target on the stock, down from their previous price target of $11.00. Bank of America's price objective indicates a potential downside of 11.56% from the stock's previous close.

A number of other equities analysts also recently issued reports on STUB. Guggenheim reissued a "buy" rating and set a $11.00 price target on shares of STUB in a research report on Thursday. Morgan Stanley lifted their price objective on STUB from $8.75 to $10.00 and gave the company an "equal weight" rating in a report on Wednesday, June 10th. JPMorgan Chase & Co. upped their price objective on shares of STUB from $10.00 to $11.00 and gave the stock a "neutral" rating in a research note on Thursday, May 14th. BMO Capital Markets cut shares of STUB from an "outperform" rating to a "market perform" rating in a report on Tuesday, May 19th. Finally, UBS Group set a $7.50 target price on shares of STUB in a research report on Thursday. Four research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $10.44.

STUB Stock Performance

STUB stock opened at $8.48 on Thursday. The company has a debt-to-equity ratio of 0.96, a quick ratio of 1.10 and a current ratio of 1.10. The company has a market capitalization of $3.18 billion and a PE ratio of -14.13. The company has a 50 day moving average price of $10.41 and a 200-day moving average price of $9.27. STUB has a fifty-two week low of $5.74 and a fifty-two week high of $27.89.

STUB (NYSE:STUB - Get Free Report) last announced its quarterly earnings data on Wednesday, May 13th. The company reported $0.06 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.01) by $0.07. The firm had revenue of $446.05 million during the quarter. The company's revenue was up 12.2% on a year-over-year basis. As a group, equities analysts forecast that STUB will post 0.48 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Mark Streams sold 28,531 shares of the firm's stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $13.02, for a total transaction of $371,473.62. Following the sale, the insider owned 1,561,122 shares of the company's stock, valued at $20,325,808.44. This trade represents a 1.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Nayaab Islam sold 54,801 shares of the firm's stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $13.03, for a total value of $714,057.03. Following the sale, the insider directly owned 8,454,764 shares in the company, valued at approximately $110,165,574.92. The trade was a 0.64% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 179,467 shares of company stock worth $2,286,430 over the last quarter. Company insiders own 30.97% of the company's stock.

Institutional Trading of STUB

Hedge funds have recently modified their holdings of the company. WestCap Management LLC bought a new stake in shares of STUB in the 4th quarter valued at about $429,370,000. Capital Research Global Investors bought a new position in shares of STUB during the 4th quarter worth approximately $106,887,000. Index Venture Associates III Ltd bought a new position in shares of STUB during the 4th quarter worth approximately $85,192,000. PointState Capital LP lifted its position in STUB by 19.9% during the fourth quarter. PointState Capital LP now owns 24,823,335 shares of the company's stock valued at $335,860,000 after acquiring an additional 4,117,332 shares during the last quarter. Finally, Capital International Investors acquired a new stake in STUB in the fourth quarter valued at approximately $55,235,000.

About STUB

Stubhub Holdings Inc, through its subsidiaries, provides an online marketplace to buy and sell tickets for sports, concerts, theater, festivals and other live events. Stubhub Holdings Inc is based in NEW YORK.

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