PubMatic (NASDAQ:PUBM) Price Target Cut to $11.00 by Analysts at Royal Bank Of Canada

Key Points

• Royal Bank of Canada has lowered its price target for PubMatic (NASDAQ:PUBM) from $14.00 to $11.00, while maintaining an "outperform" rating, suggesting a potential upside of 35.25% from the current price.
• Multiple research firms, including B. Riley and Lake Street Capital, have recently downgraded their ratings for PubMatic and reduced their target prices significantly to between $9.00 and $9.50.
• PubMatic's stock has dropped 23.1% recently, trading at $8.13, and the company reported a net margin of 1.90% and revenue growth of 5.6% year-over-year, despite missing EPS estimates.

PubMatic (NASDAQ:PUBM - Get Free Report) had its price objective lowered by analysts at Royal Bank Of Canada from $14.00 to $11.00 in a report issued on Tuesday, Marketbeat reports. The firm presently has an "outperform" rating on the stock. Royal Bank Of Canada's target price indicates a potential upside of 29.72% from the stock's previous close.

Other equities research analysts have also recently issued research reports about the company. B. Riley cut PubMatic from a "buy" rating to a "neutral" rating and lowered their price target for the company from $17.00 to $9.00 in a research note on Tuesday. Lake Street Capital downgraded PubMatic from a "buy" rating to a "hold" rating and cut their price objective for the company from $19.00 to $9.50 in a research report on Tuesday. Four investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $11.79.

PubMatic Stock Up 1.7%

NASDAQ:PUBM traded up $0.14 during trading hours on Tuesday, reaching $8.48. 1,236,744 shares of the company's stock were exchanged, compared to its average volume of 727,125. PubMatic has a 1-year low of $7.01 and a 1-year high of $17.74. The company has a 50-day moving average of $11.92 and a 200 day moving average of $11.57.

PubMatic (NASDAQ:PUBM - Get Free Report) last released its earnings results on Monday, August 11th. The company reported ($0.11) earnings per share for the quarter, missing the consensus estimate 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 business had revenue of $71.10 million for the quarter, compared to analysts' expectations of $67.77 million. During the same quarter last year, the company posted $0.04 earnings per share. The business's quarterly revenue was up 5.6% compared to the same quarter last year. Sell-side analysts predict that PubMatic will post 0.22 EPS for the current year.

Insider Transactions at PubMatic

In related news, CEO Rajeev K. Goel sold 33,001 shares of the business's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $12.56, for a total transaction of $414,492.56. Following the sale, the chief executive officer owned 32,515 shares of the company's stock, valued at $408,388.40. The trade was a 50.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Steven Pantelick sold 15,690 shares of the business's stock in a transaction dated Thursday, July 3rd. The stock was sold at an average price of $12.82, for a total transaction of $201,145.80. Following the sale, the chief financial officer directly owned 30,702 shares in the company, valued at $393,599.64. The trade was a 33.82% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 285,294 shares of company stock worth $3,449,506. 26.42% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. GAMMA Investing LLC lifted its position in PubMatic by 23,208.3% during the first 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 during the last quarter. Cubist Systematic Strategies LLC acquired a new position in shares of PubMatic in the 4th quarter valued at $29,000. Point72 Asia Singapore Pte. Ltd. purchased a new position in shares of PubMatic in the fourth quarter worth about $57,000. Headlands Technologies LLC purchased a new stake in shares of PubMatic in the first quarter valued at about $69,000. Finally, CWM LLC lifted its position in shares of PubMatic by 506.1% during 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 in the last quarter. Institutional investors own 64.26% of the company's stock.

PubMatic Company Profile

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.