PubMatic (NASDAQ:PUBM) Sets New 12-Month Low Following Weak Earnings

Key Points

• PubMatic's stock reached a new 52-week low at $7.01, closing at $8.34, following the announcement of weaker than expected quarterly earnings with an EPS of ($0.11).
• The company reported a revenue of $71.10 million, exceeding analyst estimates, but suffered a negative return on equity of 0.63% and negative net margin of 0.58% for the quarter.
• Analyst ratings have shifted, with some firms lowering their price targets; Royal Bank of Canada reduced its target from $14.00 to $11.00, while B. Riley cut its target from $17.00 to $9.00.

Shares of PubMatic, Inc. (NASDAQ:PUBM - Get Free Report) hit a new 52-week low during trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $7.01 and last traded at $8.34, with a volume of 3777600 shares trading hands. The stock had previously closed at $10.57.

The company reported ($0.11) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.02 by ($0.13). The firm had revenue of $71.10 million during the quarter, compared to analyst estimates of $67.77 million. PubMatic had a negative return on equity of 0.63% and a negative net margin of 0.58%. The firm's revenue for the quarter was up 5.6% on a year-over-year basis. During the same quarter last year, the firm posted $0.04 EPS.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on PUBM shares. Royal Bank Of Canada reissued an "outperform" rating and issued a $11.00 price target (down from $14.00) on shares of PubMatic in a report on Tuesday. B. Riley lowered PubMatic from a "buy" rating to a "neutral" rating and dropped their price target for the stock from $17.00 to $9.00 in a research note on Tuesday. Lake Street Capital lowered PubMatic from a "buy" rating to a "hold" rating and dropped their price target for the stock from $19.00 to $9.50 in a research note on Tuesday. Finally, Scotiabank lowered their price objective on PubMatic from $15.00 to $10.00 and set a "sector perform" rating for the company in a research report on Tuesday. Four analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $14.36.

Insider Activity

In other PubMatic news, CFO Steven Pantelick sold 15,690 shares of the business's stock in a transaction on Thursday, July 3rd. The stock was sold at an average price of $12.82, for a total transaction of $201,145.80. Following the transaction, the chief financial officer owned 30,702 shares of the company's stock, valued at approximately $393,599.64. The trade was a 33.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Rajeev K. Goel sold 44,000 shares of the company's stock in a transaction on Friday, August 1st. The shares were sold at an average price of $11.28, for a total value of $496,320.00. The disclosure for this sale can be found here. Insiders sold 285,294 shares of company stock valued at $3,449,506 in the last three months. Company insiders own 26.42% of the company's stock.

Institutional Investors Weigh In On PubMatic

A number of hedge funds have recently bought and sold shares of the stock. Cubist Systematic Strategies LLC acquired a new position in PubMatic during the fourth quarter worth approximately $29,000. GAMMA Investing LLC grew 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 during the last quarter. Point72 Asia Singapore Pte. Ltd. purchased a new position in shares of PubMatic in the 4th quarter valued at approximately $57,000. Tower Research Capital LLC TRC grew its stake in shares of PubMatic by 75.2% in the 4th quarter. Tower Research Capital LLC TRC now owns 5,220 shares of the company's stock valued at $77,000 after purchasing an additional 2,240 shares during the last quarter. Finally, CWM LLC grew its stake in shares of PubMatic by 506.1% in the 2nd quarter. CWM LLC now owns 5,964 shares of the company's stock valued at $74,000 after purchasing an additional 4,980 shares during the last quarter. Institutional investors and hedge funds own 64.26% of the company's stock.

PubMatic Trading Down 21.1%

The firm has a 50 day simple moving average of $11.92 and a two-hundred day simple moving average of $11.57. The company has a market capitalization of $404.74 million, a PE ratio of -119.13 and a beta of 1.54.

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.

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