PubMatic (NASDAQ:PUBM) Shares Up 6.3% - Here's Why

Key Points

• PubMatic shares rose 6.3% on Friday, trading as high as $12.13 after closing at $11.51 the prior day.
• Several analysts turned more positive on the stock, with RBC lifting its price target to $13 and the overall consensus remaining a Moderate Buy with a target of $12.88.
• PubMatic’s latest earnings beat estimates, reporting a smaller-than-expected loss of ($0.27) per share and revenue of $62.57 million, both above analyst forecasts.

PubMatic, Inc. (NASDAQ:PUBM - Get Free Report) shot up 6.3% on Friday . The stock traded as high as $12.13 and last traded at $12.2370. 53,306 shares traded hands during mid-day trading, a decline of 92% from the average daily volume of 692,594 shares. The stock had previously closed at $11.51.

Analysts Set New Price Targets

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

PubMatic Stock Performance

The business has a fifty day simple moving average of $10.60 and a 200 day simple moving average of $8.93. The stock has a market cap of $576.32 million, a price-to-earnings ratio of -32.66 and a beta of 1.57.

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

Insider Buying and Selling at PubMatic

In other news, CFO Steven Pantelick sold 16,747 shares of PubMatic stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $8.17, for a total transaction of $136,822.99. Following the completion of the sale, the chief financial officer directly owned 57,601 shares in the company, valued at $470,600.17. The trade was a 22.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Mukul Kumar sold 8,000 shares of the business's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $11.96, for a total transaction of $95,680.00. Following the completion of the transaction, the insider directly owned 100,869 shares of the company's stock, valued at approximately $1,206,393.24. This represents a 7.35% 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. In the last ninety days, insiders have sold 332,953 shares of company stock worth $3,224,258. Corporate insiders own 27.78% of the company's stock.

Institutional Investors Weigh In On PubMatic

Hedge funds have recently made changes to their positions in the business. Renaissance Technologies LLC increased its stake in PubMatic by 26.3% in the first quarter. Renaissance Technologies LLC now owns 1,540,533 shares of the company's stock valued at $12,602,000 after purchasing an additional 321,200 shares during the last quarter. Wellington Management Group LLP boosted its stake in PubMatic by 10.1% in the 3rd quarter. Wellington Management Group LLP now owns 1,468,503 shares of the company's stock worth $12,159,000 after buying an additional 135,070 shares during the last quarter. CenterBook Partners LP boosted its stake in PubMatic by 53.3% in the 4th quarter. CenterBook Partners LP now owns 1,147,055 shares of the company's stock worth $10,174,000 after buying an additional 398,595 shares during the last quarter. Jacobs Levy Equity Management Inc. grew its holdings in PubMatic by 9.1% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 929,249 shares of the company's stock valued at $8,242,000 after buying an additional 77,566 shares during the period. Finally, Millennium Management LLC grew its holdings in PubMatic by 320.0% in the 4th quarter. Millennium Management LLC now owns 918,127 shares of the company's stock valued at $8,144,000 after buying an additional 699,549 shares during the period. Institutional investors and hedge funds own 64.26% of the company's stock.

PubMatic Company Profile

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.

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