PubMatic (NASDAQ:PUBM) Raised to Strong-Buy at Rosenblatt Securities

Key Points

• Analysts at Rosenblatt Securities have upgraded PubMatic to a "strong-buy" rating, enhancing investor sentiment for the stock.
• Despite the upgrade, other research firms have downgraded the stock, with price targets ranging from $9.00 to $12.00, signaling mixed opinions on its future performance.
• PubMatic reported a quarterly earnings miss with a loss of ($0.11) per share against estimates of $0.02, although revenue exceeded expectations at $71.10 million, up 5.6% year-over-year.

PubMatic (NASDAQ:PUBM - Get Free Report) was upgraded by analysts at Rosenblatt Securities to a "strong-buy" rating in a research report issued on Wednesday,Zacks.com reports.

Several other equities research analysts also recently weighed in on the stock. B. Riley downgraded shares of PubMatic from a "buy" rating to a "neutral" rating and reduced their price target for the company from $17.00 to $9.00 in a research report on Tuesday, August 12th. Lake Street Capital lowered PubMatic from a "buy" rating to a "hold" rating and reduced their target price for the stock from $19.00 to $9.50 in a report on Tuesday, August 12th. Evercore ISI decreased their price target on PubMatic from $16.00 to $12.00 and set an "outperform" rating for the company in a research note on Wednesday, August 13th. JMP Securities dropped their price objective on 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, Scotiabank reduced their price objective on PubMatic from $15.00 to $10.00 and set a "sector perform" rating for the company in a report on Tuesday, August 12th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, PubMatic presently has an average rating of "Moderate Buy" and an average price target of $12.44.

PubMatic Price Performance

NASDAQ:PUBM opened at $8.50 on Wednesday. The firm has a market capitalization of $412.51 million, a P/E ratio of -121.41 and a beta of 1.54. PubMatic has a one year low of $7.01 and a one year high of $17.74. The company's 50-day simple moving average is $11.43 and its 200 day simple moving average is $11.26.

PubMatic (NASDAQ:PUBM - Get Free Report) last posted its quarterly 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). The company had revenue of $71.10 million during the quarter, compared to analysts' expectations of $67.77 million. PubMatic had a negative return on equity of 0.64% and a negative net margin of 0.58%.The business's quarterly revenue was up 5.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.04 EPS. PubMatic has set its Q3 2025 guidance at EPS. On average, equities research analysts expect that PubMatic will post 0.22 earnings per share for the current fiscal year.

Insider Activity

In other news, 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 value of $201,145.80. Following the transaction, 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Rajeev K. Goel sold 44,000 shares of the stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $8.42, for a total value of $370,480.00. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 329,286 shares of company stock worth $3,816,613. 26.42% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Rhumbline Advisers lifted its stake in PubMatic by 2.3% in the 1st quarter. Rhumbline Advisers now owns 60,012 shares of the company's stock worth $548,000 after purchasing an additional 1,341 shares in the last quarter. Cubist Systematic Strategies LLC bought a new stake in PubMatic in the 4th quarter worth approximately $29,000. Tower Research Capital LLC TRC boosted its position in shares of PubMatic by 75.2% during the 4th quarter. Tower Research Capital LLC TRC now owns 5,220 shares of the company's stock valued at $77,000 after acquiring an additional 2,240 shares during the last quarter. US Bancorp DE grew its holdings in shares of PubMatic by 21.3% in the first quarter. US Bancorp DE now owns 14,736 shares of the company's stock valued at $135,000 after purchasing an additional 2,591 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD increased its position in PubMatic by 10.9% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 27,025 shares of the company's stock worth $397,000 after purchasing an additional 2,647 shares during the last quarter. 64.26% of the stock is currently owned by 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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