STUB (NYSE:STUB) Sets New 52-Week Low After Earnings Miss

Key Points

• STUB hit a new 52-week low, falling to $5.07 after its earnings announcement; it was last trading at $5.464, down from a prior close of $5.65.
• Quarterly EPS was $0.05, missing the $0.11 consensus, while revenue of $501.95 million rose 7.2% year over year but came in below estimates of about $524 million.
• Despite the earnings miss, StubHub raised its full-year gross merchandise sales growth forecast to 11%–13%. Analysts’ consensus rating is Hold, with an average price target of $10.17.

STUB (NYSE:STUB - Get Free Report) shares reached a new 52-week low during mid-day trading on Wednesday following a dissappointing earnings announcement. The company traded as low as $5.07 and last traded at $5.4640, with a volume of 1,751,781 shares trading hands. The stock had previously closed at $5.65.

The company reported $0.05 EPS for the quarter, missing analysts' consensus estimates of $0.11 by ($0.06). STUB had a negative return on equity of 9.50% and a negative net margin of 93.54%. The company had revenue of $501.95 million for the quarter. During the same period in the prior year, the firm posted ($4.27) EPS. STUB's revenue was up 7.2% compared to the same quarter last year.

Top STUB Stories

These are some of the STUB stories that stood out recently:

• Positive Sentiment: StubHub raised its full-year gross merchandise sales growth forecast to 11%–13%. Third-quarter sales and marketing costs also fell by 9 percentage points as a share of revenue, to 45%, signaling improved expense discipline. StubHub: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: The company announced a CFO transition, with the succession effective January 2027. StubHub Announces Chief Financial Officer Transition
• Negative Sentiment: Third-quarter adjusted earnings were $0.05 per share, below the $0.11 analyst consensus. Revenue of $501.95 million also missed estimates of about $524 million, despite growing 7.2% year over year. The earnings shortfall is weighing on the shares even as the company raised its GMS outlook. StubHub falls on earnings miss despite raising GMS outlook

Analyst Ratings Changes

Several equities research analysts have commented on STUB shares. Weiss Ratings cut shares of STUB from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, October 2nd. TD Cowen cut their price target on shares of STUB from $16.00 to $12.00 and set a "buy" rating for the company in a report on Friday, August 21st. Bank of America lowered shares of STUB from a "neutral" rating to an "underperform" rating and reduced their price objective for the company from $11.00 to $7.50 in a research report on Thursday, August 13th. Oppenheimer lowered their price objective on shares of STUB from $12.00 to $11.00 and set an "outperform" rating on the stock in a research note on Thursday, August 13th. Finally, Guggenheim dropped their target price on shares of STUB from $11.00 to $9.00 and set a "buy" rating on the stock in a report on Friday, October 9th. Six investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $10.17.

Insider Buying and Selling

In other news, insider Nayaab Islam sold 14,306 shares of the stock in a transaction on Monday, September 14th. The stock was sold at an average price of $6.20, for a total value of $88,697.20. Following the completion of the sale, the insider owned 7,996,986 shares in the company, valued at $49,581,313.20. This represents a 0.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Mark Streams sold 135,589 shares of the stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $6.39, for a total value of $866,413.71. Following the completion of the sale, the insider directly owned 1,225,976 shares of the company's stock, valued at approximately $7,833,986.64. This represents a 9.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 991,338 shares of company stock worth $6,692,030 in the last 90 days. 30.97% of the stock is owned by company insiders.

Institutional Investors Weigh In On STUB

A number of large investors have recently added to or reduced their stakes in the stock. Nisa Investment Advisors LLC increased its stake in shares of STUB by 135.7% in the third quarter. Nisa Investment Advisors LLC now owns 4,755 shares of the company's stock worth $27,000 after purchasing an additional 2,738 shares during the period. Meeder Asset Management Inc. bought a new stake in STUB during the 3rd quarter valued at approximately $33,000. Royal Bank of Canada grew its holdings in STUB by 194.4% in the 1st quarter. Royal Bank of Canada now owns 6,382 shares of the company's stock valued at $39,000 after buying an additional 4,214 shares during the last quarter. Sterling Capital Management LLC grew its holdings in STUB by 848.2% in the 3rd quarter. Sterling Capital Management LLC now owns 7,434 shares of the company's stock valued at $41,000 after buying an additional 6,650 shares during the last quarter. Finally, State of Wyoming grew its holdings in STUB by 328.8% in the 3rd quarter. State of Wyoming now owns 8,371 shares of the company's stock valued at $47,000 after buying an additional 6,419 shares during the last quarter.

STUB Trading Down 1.9%

The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.04 and a current ratio of 1.04. The company has a 50-day simple moving average of $5.87 and a 200 day simple moving average of $8.25. The company has a market capitalization of $2.12 billion, a P/E ratio of -0.97, a P/E/G ratio of 0.61 and a beta of 3.44.

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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