PubMatic, Inc. (NASDAQ:PUBM) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• PubMatic has a “Moderate Buy” consensus rating: Ten of 12 analysts recommend buying the stock, with an average 12-month price target of $18.25. Recent upgrades included Raymond James to “outperform” and Scotiabank to “sector outperform.”
• The company exceeded quarterly expectations, reporting an adjusted loss of $0.03 per share versus the $0.18 consensus loss and revenue of $78.59 million compared with estimates of $68.95 million.
• Insiders sold heavily during the quarter, including significant share sales by the CFO and CEO totaling $9.16 million overall; institutional investors own 64.26% of PubMatic’s stock.

PubMatic, Inc. (NASDAQ:PUBM - Get Free Report) has received an average rating of "Moderate Buy" from the twelve ratings firms that are presently covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, one has given a hold recommendation and ten have assigned a buy recommendation to the company. The average 12 month price objective among brokers that have covered the stock in the last year is $18.25.

Several equities analysts recently weighed in on PUBM shares. Raymond James Financial raised PubMatic from a "market perform" rating to an "outperform" rating and set a $22.00 price objective for the company in a research report on Friday, August 7th. Scotiabank raised PubMatic from a "sector perform" rating to a "sector outperform" rating and raised their target price for the company from $8.00 to $21.00 in a report on Friday, August 7th. Citigroup reaffirmed an "outperform" rating on shares of PubMatic in a research report on Friday, August 7th. Jefferies Financial Group upped their price target on PubMatic from $10.00 to $18.00 and gave the stock a "hold" rating in a report on Tuesday. Finally, Lake Street Capital reissued a "buy" rating and issued a $20.00 price objective on shares of PubMatic in a research report on Friday, August 7th.

PubMatic Price Performance

PubMatic stock opened at $17.59 on Friday. The firm has a market cap of $801.22 million, a price-to-earnings ratio of -58.63 and a beta of 1.54. PubMatic has a fifty-two week low of $6.15 and a fifty-two week high of $18.44. The firm has a fifty day moving average price of $13.21 and a two-hundred day moving average price of $10.27.

PubMatic (NASDAQ:PUBM - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.18) by $0.15. The company had revenue of $78.59 million during the quarter, compared to analysts' expectations of $68.95 million. PubMatic had a negative net margin of 4.66% and a negative return on equity of 5.41%. As a group, sell-side analysts expect that PubMatic will post -0.26 earnings per share for the current year.

Insider Buying and Selling

In other PubMatic news, CFO Steven Pantelick sold 23,548 shares of the firm's stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $13.65, for a total value of $321,430.20. Following the sale, the chief financial officer directly owned 64,820 shares in the company, valued at $884,793. This trade represents a 26.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Rajeev K. Goel sold 211,302 shares of the firm's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $17.74, for a total transaction of $3,748,497.48. Following the completion of the sale, 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. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 616,336 shares of company stock valued at $9,164,651. 27.78% of the stock is owned by company insiders.

Institutional Investors Weigh In On PubMatic

Several hedge funds have recently made changes to their positions in the stock. Quarry LP acquired a new stake in PubMatic during the fourth quarter worth about $30,000. Caitong International Asset Management Co. Ltd raised its holdings in PubMatic by 75.6% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,449 shares of the company's stock valued at $39,000 after acquiring an additional 1,915 shares in the last quarter. State of Wyoming acquired a new position in PubMatic in the 1st quarter valued at approximately $61,000. Tower Research Capital LLC TRC lifted its position in shares of PubMatic by 264.8% in the 2nd quarter. Tower Research Capital LLC TRC now owns 4,878 shares of the company's stock worth $61,000 after acquiring an additional 3,541 shares during the period. Finally, BNP Paribas Financial Markets grew its holdings in shares of PubMatic by 120.8% during the 3rd quarter. BNP Paribas Financial Markets now owns 8,875 shares of the company's stock worth $73,000 after purchasing an additional 4,856 shares in the last quarter. Institutional investors own 64.26% of the company's stock.

PubMatic Company Profile

PubMatic is a cloud-based digital advertising technology company that provides a supply-side platform (SSP) enabling publishers to automate and optimize the sale of their ad inventory across display, mobile, video and connected TV channels. Its core offerings include real-time bidding infrastructure, header bidding solutions under the OpenWrap brand and data analytics tools that deliver actionable insights on audience engagement and monetization performance. By facilitating seamless auctions and providing transparent reporting, PubMatic helps publishers maximize yield while improving buyer experiences.

Founded in 2006 by Rajeev Goel and a team of ad-tech veterans, PubMatic grew from an early entrant in programmatic selling to a publicly traded company, listing on the Nasdaq symbol: PUBM in December 2020.

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