STUB (NYSE:STUB) Shares Climb 5.4% - Here's Why

Key Points

• STUB shares rose 5.4% to about $6.04 during Wednesday trading, although volume was 52% below the average session level.
• Analyst sentiment remains mixed: six analysts rate the stock Buy, six Hold and two Sell, producing an average “Hold” rating and a $10.33 average price target.
• The company recently missed quarterly earnings expectations, reporting $0.02 per share versus $0.07 expected, while insiders sold nearly 1 million shares worth $6.7 million over the past quarter.

STUB (NYSE:STUB - Get Free Report)'s stock price traded up 5.4% during trading on Wednesday. The company traded as high as $6.01 and last traded at $6.0370. Approximately 2,687,676 shares changed hands during trading, a decline of 52% from the average session volume of 5,611,216 shares. The stock had previously closed at $5.73.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. Mizuho set a $11.00 target price on STUB in a research report on Friday, August 14th. TD Cowen reduced their price objective on shares of STUB from $16.00 to $12.00 and set a "buy" rating on the stock in a research report on Friday, August 21st. UBS Group set a $7.50 target price on shares of STUB in a research note on Thursday, August 13th. Bank of America restated an "underperform" rating and set a $7.50 price objective (down from $11.00) on shares of STUB in a research report on Thursday, August 13th. Finally, Weiss Ratings downgraded STUB from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday. Six equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, STUB has an average rating of "Hold" and an average target price of $10.33.

STUB Stock Performance

The firm has a market capitalization of $2.30 billion and a PE ratio of -1.05. The business has a 50-day simple moving average of $6.77 and a 200-day simple moving average of $8.23. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.04 and a quick ratio of 1.04.

STUB (NYSE:STUB - Get Free Report) last released its earnings results on Wednesday, August 12th. The company reported $0.02 earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.05). The company had revenue of $573.07 million for the quarter. STUB had a negative net margin of 93.54% and a negative return on equity of 9.50%. Equities research analysts expect that STUB will post 0.38 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Scott Michael Fitzgerald sold 84,970 shares of the stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $7.08, for a total value of $601,587.60. Following the sale, the insider directly owned 110,383 shares in the company, valued at approximately $781,511.64. This represents a 43.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Nayaab Islam sold 219,736 shares of the firm's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $6.78, for a total value of $1,489,810.08. Following the sale, the insider directly owned 8,232,228 shares of the company's stock, valued at $55,814,505.84. This represents a 2.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 991,338 shares of company stock valued at $6,692,030 in the last quarter. 30.97% of the stock is currently owned by company insiders.

Institutional Trading of STUB

A number of large investors have recently made changes to their positions in the stock. Sequoia Financial Advisors LLC purchased a new stake in STUB in the 2nd quarter valued at about $7,953,000. WINTON GROUP Ltd raised its stake in shares of STUB by 194.6% during the second quarter. WINTON GROUP Ltd now owns 43,600 shares of the company's stock valued at $561,000 after acquiring an additional 28,800 shares in the last quarter. Rose Capital Advisors LLC purchased a new stake in shares of STUB in the second quarter valued at approximately $183,000. Comprehensive Financial Management LLC grew its stake in STUB by 13.6% in the second quarter. Comprehensive Financial Management LLC now owns 390,543 shares of the company's stock worth $5,026,000 after purchasing an additional 46,808 shares in the last quarter. Finally, Stephens Group LLC increased its holdings in STUB by 193.2% during the 2nd quarter. Stephens Group LLC now owns 1,022,413 shares of the company's stock worth $13,158,000 after purchasing an additional 673,715 shares during the period.

About STUB

StubHub Holdings, Inc operates online ticket marketplaces that connect buyers and sellers of tickets for live events. Through the StubHub and viagogo platforms, the company offers tickets to sporting events, concerts, theater productions, festivals and other entertainment experiences. Its services generally include ticket discovery, digital transactions, delivery and customer support.

StubHub was founded in 2000 by Eric Baker and Jeff Fluhr. eBay acquired the company in 2007, and StubHub was later sold to viagogo in 2020.

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