PubMatic (NASDAQ:PUBM) Reaches New 1-Year High - Should You Buy?

Key Points

• PubMatic shares reached a new 52-week high of $19.19, trading recently around $17.78. The stock’s consensus analyst rating is “Moderate Buy,” with an average price target of $18.25 and several analysts raising targets to between $20 and $23.
• The company’s latest quarterly results exceeded expectations, with revenue of $78.59 million versus the $68.95 million consensus estimate and an adjusted EPS loss of $0.03 compared with the expected $0.18 loss. PubMatic remains unprofitable, reporting a negative net margin and return on equity.
• Insiders sold substantial holdings, including significant sales by the CEO and general counsel under pre-arranged Rule 10b5-1 plans; insiders sold 538,626 shares worth about $8.66 million over the past 90 days. Institutional investors own 64.26% of the company.

Shares of PubMatic, Inc. (NASDAQ:PUBM - Get Free Report) hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $19.19 and last traded at $17.7760, with a volume of 266868 shares. The stock had previously closed at $16.85.

Analysts Set New Price Targets

Several brokerages have commented on PUBM. Rosenblatt Securities upped their price objective on PubMatic from $21.00 to $23.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Raymond James Financial raised shares of PubMatic from a "market perform" rating to an "outperform" rating and set a $22.00 target price for the company in a research note on Friday, August 7th. Citigroup restated an "outperform" rating on shares of PubMatic in a report on Friday, August 7th. Scotiabank upgraded shares of PubMatic from a "sector perform" rating to a "sector outperform" rating and upped their target price for the stock from $8.00 to $21.00 in a research note on Friday, August 7th. Finally, Lake Street Capital restated a "buy" rating and issued a $20.00 target price on shares of PubMatic in a research note on Friday, August 7th. Ten 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. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $18.25.

PubMatic Stock Performance

The company's fifty day simple moving average is $15.27 and its 200-day simple moving average is $11.89. The company has a market capitalization of $794.44 million, a P/E ratio of -58.09 and a beta of 1.58.

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

Insider Buying and Selling

In other PubMatic news, General Counsel Andrew Woods sold 38,331 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $17.96, for a total transaction of $688,424.76. Following the sale, the general counsel owned 39,761 shares of the company's stock, valued at approximately $714,107.56. This trade represents a 49.08% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Rajeev K. Goel sold 211,302 shares of PubMatic stock in a transaction on Friday, August 7th. The shares were sold at an average price of $17.74, for a total value of $3,748,497.48. Following the completion of the transaction, the chief executive officer owned 31,692 shares in the company, valued at $562,216.08. This represents a 86.96% decrease in their ownership of the stock. 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 538,626 shares of company stock valued at $8,664,396 over the last 90 days. Corporate insiders own 27.78% of the company's stock.

Institutional Trading of PubMatic

A number of institutional investors have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd raised its stake in shares of PubMatic by 75.6% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,449 shares of the company's stock worth $39,000 after acquiring an additional 1,915 shares in the last quarter. State of Wyoming purchased a new stake in shares of PubMatic during the 1st quarter valued at $61,000. Savant Capital LLC acquired a new stake in shares of PubMatic in the 4th quarter worth $110,000. Sei Investments Co. acquired a new stake in shares of PubMatic in the 1st quarter worth $129,000. Finally, 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 valued at $140,000 after buying an additional 2,482 shares in the last quarter. 64.26% of the stock is currently owned by institutional investors.

PubMatic Company Profile

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.