PubMatic (NASDAQ:PUBM) Shares Down 6.3% - What's Next?

Key Points

• PubMatic shares fell 6.3% on Friday, trading as low as $12.75 on lighter-than-normal volume before closing near $12.77.
• Analyst sentiment remains mixed but generally positive, with an average “Moderate Buy” rating and a consensus price target of $12.88. Recent calls included B. Riley reiterating a buy and RBC raising its target to $13 with an outperform rating.
• The company recently beat earnings and revenue estimates for the quarter, but profitability remained weak, and executives sold shares in early July under pre-arranged trading plans to cover tax withholding tied to equity awards.

Shares of PubMatic, Inc. (NASDAQ:PUBM - Get Free Report) traded down 6.3% during trading on Friday . The company traded as low as $12.75 and last traded at $12.77. 138,283 shares traded hands during trading, a decline of 80% from the average session volume of 681,073 shares. The stock had previously closed at $13.63.

Analyst Ratings Changes

A number of analysts have weighed in on PUBM shares. B. Riley Financial restated a "buy" rating on shares of PubMatic in a research note on Friday, May 8th. Wall Street Zen upgraded PubMatic from a "sell" rating to a "hold" rating in a report on Saturday, April 25th. Royal Bank Of Canada raised their target price on PubMatic from $11.00 to $13.00 and gave the stock an "outperform" rating in a research report on Friday, May 8th. Rosenblatt Securities restated a "buy" rating and set a $21.00 target price on shares of PubMatic in a research note on Thursday, April 23rd. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of PubMatic in a report on Tuesday, April 21st. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $12.88.

PubMatic Price Performance

The stock has a 50 day simple moving average of $11.70 and a two-hundred day simple moving average of $9.40. The company has a market cap of $597.45 million, a PE ratio of -33.88 and a beta of 1.51.

PubMatic (NASDAQ:PUBM - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported ($0.27) EPS for the quarter, beating the consensus estimate of ($0.32) by $0.05. PubMatic had a negative net margin of 6.21% and a negative return on equity of 6.98%. The firm had revenue of $62.57 million during the quarter, compared to the consensus estimate of $60.42 million. As a group, equities analysts anticipate that PubMatic, Inc. will post -0.26 EPS for the current fiscal year.

Insider Buying and Selling at PubMatic

In other news, CEO Rajeev K. Goel sold 58,854 shares of PubMatic stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $13.68, for a total transaction of $805,122.72. Following the completion of the sale, the chief executive officer directly owned 47,301 shares in the company, valued at approximately $647,077.68. This trade represents a 55.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Steven Pantelick sold 23,548 shares of PubMatic stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $13.65, for a total transaction of $321,430.20. Following the transaction, the chief financial officer owned 64,820 shares of the company's stock, valued at approximately $884,793. The trade was a 26.65% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 318,305 shares of company stock valued at $3,807,773. Corporate insiders own 27.78% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Quarry LP bought a new stake in shares of PubMatic during the 4th quarter valued at about $30,000. Caitong International Asset Management Co. Ltd increased its position in shares of PubMatic by 75.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 4,449 shares of the company's stock worth $39,000 after acquiring an additional 1,915 shares in the last quarter. State of Wyoming acquired a new stake in shares of PubMatic in the first quarter worth $61,000. Tower Research Capital LLC TRC lifted its position in shares of 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 in the last quarter. Finally, BNP Paribas Financial Markets increased its stake in shares of PubMatic by 120.8% in the third quarter. BNP Paribas Financial Markets now owns 8,875 shares of the company's stock worth $73,000 after acquiring an additional 4,856 shares during the last quarter. 64.26% of the stock is owned by institutional investors and hedge funds.

About PubMatic

PubMatic is a cloud-based digital advertising technology company that provides a supply-side platform (SSP) enabling publishers to automate and optimize the sale of their ad inventory across display, mobile, video and connected TV channels. Its core offerings include real-time bidding infrastructure, header bidding solutions under the OpenWrap brand and data analytics tools that deliver actionable insights on audience engagement and monetization performance. By facilitating seamless auctions and providing transparent reporting, PubMatic helps publishers maximize yield while improving buyer experiences.

Founded in 2006 by Rajeev Goel and a team of ad-tech veterans, PubMatic grew from an early entrant in programmatic selling to a publicly traded company, listing on the Nasdaq symbol: PUBM in December 2020.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.