PubMatic (NASDAQ:PUBM) Rating Lowered to "Hold" at Lake Street Capital

Key Points

• Lake Street Capital has downgraded PubMatic from a "buy" to a "hold" rating, with a new price target of $9.50, indicating a potential downside of 10.12% from its previous close.
• PubMatic's recent earnings report showed a net loss of ($0.11) EPS, missing analyst expectations, although revenue rose 5.6% year-over-year to $71.10 million.
• Insider trading activity includes CEO Rajeev K. Goel selling 33,001 shares, which represents a 50.37% decrease in his ownership stake in the company.

PubMatic (NASDAQ:PUBM - Get Free Report) was downgraded by stock analysts at Lake Street Capital from a "buy" rating to a "hold" rating in a research note issued to investors on Tuesday, MarketBeat.com reports. They currently have a $9.50 price objective on the stock, down from their previous price objective of $19.00. Lake Street Capital's price objective points to a potential upside of 11.70% from the company's previous close.

PUBM has been the topic of a number of other research reports. B. Riley cut PubMatic from a "buy" rating to a "neutral" rating and decreased their target price for the company from $17.00 to $9.00 in a research report on Tuesday. Royal Bank Of Canada decreased their target price on PubMatic from $17.00 to $14.00 and set an "outperform" rating on the stock in a research report on Friday, May 2nd. Four equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $11.79.

PubMatic Price Performance

PubMatic stock traded up $0.17 during mid-day trading on Tuesday, hitting $8.51. 1,123,290 shares of the company's stock traded hands, compared to its average volume of 578,816. PubMatic has a fifty-two week low of $7.01 and a fifty-two week high of $17.74. The stock has a market cap of $412.75 million, a price-to-earnings ratio of -121.48 and a beta of 1.54. The firm has a 50 day simple moving average of $11.92 and a two-hundred day simple moving average of $11.57.

PubMatic (NASDAQ:PUBM - Get Free Report) last issued its quarterly earnings results on Monday, August 11th. The company reported ($0.11) EPS for the quarter, missing analysts' consensus estimates of $0.02 by ($0.13). PubMatic had a negative return on equity of 0.63% and a negative net margin of 0.58%. The company had revenue of $71.10 million during the quarter, compared to the consensus estimate of $67.77 million. During the same quarter in the previous year, the business posted $0.04 EPS. The firm's revenue for the quarter was up 5.6% on a year-over-year basis. On average, research analysts anticipate that PubMatic will post 0.22 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Rajeev K. Goel sold 33,001 shares of PubMatic stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $12.56, for a total value of $414,492.56. Following the transaction, the chief executive officer directly 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 Securities & Exchange Commission, which is available through the SEC website. Also, CFO Steven Pantelick sold 15,690 shares of PubMatic stock in a transaction that occurred on Thursday, July 3rd. The stock was sold at an average price of $12.82, for a total value of $201,145.80. Following the completion of the transaction, the chief financial officer directly owned 30,702 shares in the company, valued at approximately $393,599.64. This represents a 33.82% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 285,294 shares of company stock valued at $3,449,506 over the last 90 days. 26.42% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On PubMatic

Institutional investors have recently added to or reduced their stakes in the business. GAMMA Investing LLC lifted its stake in PubMatic by 23,208.3% in the first quarter. GAMMA Investing LLC now owns 2,797 shares of the company's stock valued at $26,000 after buying an additional 2,785 shares during the period. Cubist Systematic Strategies LLC acquired a new position in PubMatic in the fourth quarter valued at approximately $29,000. Point72 Asia Singapore Pte. Ltd. acquired a new position in PubMatic in the fourth quarter valued at approximately $57,000. Headlands Technologies LLC acquired a new position in PubMatic in the first quarter valued at approximately $69,000. Finally, 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 valued at $74,000 after buying an additional 4,980 shares during the period. 64.26% of the stock is owned by institutional investors and hedge funds.

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.