PubMatic, Inc. (NASDAQ:PUBM) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• PubMatic has received a consensus rating of "Hold" from nine brokerages, with one sell rating, four holds, and four buy ratings, reflecting mixed outlooks among analysts.
• The company's recent earnings report revealed a loss of ($0.11) EPS, falling short of analyst expectations, though revenue was up 5.6% year-over-year.
• Significant insider selling occurred, with the CFO and CEO selling hundreds of thousands of shares, indicating a 27.21% decrease in insider ownership for the CFO following these transactions.

PubMatic, Inc. (NASDAQ:PUBM - Get Free Report) has been assigned a consensus rating of "Hold" from the nine brokerages that are covering the company, MarketBeat reports. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and four have assigned a buy rating to the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $12.4375.

A number of equities research analysts have recently issued reports on the stock. Lake Street Capital downgraded shares of PubMatic from a "buy" rating to a "hold" rating and lowered their price target for the stock from $19.00 to $9.50 in a report on Tuesday, August 12th. Wall Street Zen raised shares of PubMatic from a "sell" rating to a "hold" rating in a report on Saturday, September 13th. Scotiabank lowered their price target on shares of PubMatic from $15.00 to $10.00 and set a "sector perform" rating on the stock in a report on Tuesday, August 12th. JMP Securities decreased their price objective on shares of PubMatic from $16.00 to $12.00 and set a "market outperform" rating on the stock in a research report on Tuesday, August 12th. Finally, B. Riley cut shares of PubMatic from a "buy" rating to a "neutral" rating and decreased their price objective for the stock from $17.00 to $9.00 in a research report on Tuesday, August 12th.

PubMatic Trading Down 1.1%

Shares of PubMatic stock opened at $7.95 on Monday. PubMatic has a 12-month low of $7.01 and a 12-month high of $17.74. The company has a market cap of $363.50 million, a price-to-earnings ratio of -113.56 and a beta of 1.50. The company's 50-day moving average price is $8.44 and its 200-day moving average price is $10.18.

PubMatic (NASDAQ:PUBM - Get Free Report) last announced its quarterly earnings results on Monday, August 11th. The company reported ($0.11) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.02 by ($0.13). PubMatic had a negative return on equity of 0.64% and a negative net margin of 0.58%.The firm had revenue of $71.10 million during the quarter, compared to analysts' expectations of $67.77 million. During the same period in the previous year, the company posted $0.04 earnings per share. The company's quarterly revenue was up 5.6% compared to the same quarter last year. PubMatic has set its Q3 2025 guidance at EPS. On average, sell-side analysts predict that PubMatic will post 0.22 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Steven Pantelick sold 15,779 shares of the company's stock in a transaction that occurred on Thursday, October 2nd. The shares were sold at an average price of $8.23, for a total value of $129,861.17. Following the transaction, the chief financial officer directly owned 42,212 shares in the company, valued at approximately $347,404.76. This represents a 27.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Rajeev K. Goel sold 44,000 shares of the company's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $11.28, for a total transaction of $496,320.00. The disclosure for this sale can be found here. Insiders sold 311,131 shares of company stock valued at $2,727,148 in the last 90 days. 26.42% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. GAMMA Investing LLC boosted its stake in shares of PubMatic by 23,208.3% in the 1st quarter. GAMMA Investing LLC now owns 2,797 shares of the company's stock valued at $26,000 after purchasing an additional 2,785 shares in the last quarter. Tower Research Capital LLC TRC lifted its stake in PubMatic by 264.8% in the second quarter. Tower Research Capital LLC TRC now owns 4,878 shares of the company's stock worth $61,000 after purchasing an additional 3,541 shares during the last quarter. CWM LLC lifted its stake in PubMatic by 506.1% in the second quarter. CWM LLC now owns 5,964 shares of the company's stock worth $74,000 after purchasing an additional 4,980 shares during the last quarter. Headlands Technologies LLC bought a new stake in PubMatic in the first quarter worth $69,000. Finally, Quantbot Technologies LP bought a new stake in PubMatic in the first quarter worth $78,000. 64.26% of the stock is owned by hedge funds and other institutional investors.

About PubMatic

PubMatic, Inc, a technology company, engages in the provision of a cloud infrastructure platform that enables real-time programmatic advertising transactions for digital content creators, advertisers, agencies, agency trading desks, and demand side platforms worldwide. Its PubMatic SSP, a sell-side platform, used for the purchase and sale of digital advertising inventory for publishers and buyers.

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