Scotiabank Cuts PubMatic (NASDAQ:PUBM) Price Target to $10.00

Key Points

• Scotiabank has reduced its price target for PubMatic (NASDAQ:PUBM) from $15.00 to $10.00, maintaining a "sector perform" rating, which suggests a potential upside of 19.95% from the stock's previous close.
• Other analysts have also downgraded PubMatic, with B. Riley lowering its price target to $9.00, while Royal Bank of Canada set a target of $11.00, down from $14.00.
• PubMatic reported a quarterly earnings miss with an EPS of ($0.11), despite revenue of $71.10 million that beat analyst estimates of $67.77 million.

PubMatic (NASDAQ:PUBM - Get Free Report) had its target price reduced by equities researchers at Scotiabank from $15.00 to $10.00 in a research report issued on Tuesday,Benzinga reports. The firm presently has a "sector perform" rating on the stock. Scotiabank's target price would suggest a potential upside of 19.95% from the stock's previous close.

Several other equities research analysts have also commented on the company. B. Riley lowered PubMatic from a "buy" rating to a "neutral" rating and decreased their price target for the stock from $17.00 to $9.00 in a research note on Tuesday. Royal Bank Of Canada reissued an "outperform" rating and set a $11.00 price target (down previously from $14.00) on shares of PubMatic in a research note on Tuesday. Finally, Lake Street Capital lowered PubMatic from a "buy" rating to a "hold" rating and set a $9.50 price target on the stock. in a research note on Tuesday. Four 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 company currently has an average rating of "Hold" and a consensus price target of $14.36.

PubMatic Price Performance

Shares of PUBM traded down $2.23 during midday trading on Tuesday, reaching $8.34. 2,322,366 shares of the stock were exchanged, compared to its average volume of 565,758. The business's 50-day moving average price is $11.99 and its 200 day moving average price is $11.59. PubMatic has a twelve month low of $7.01 and a twelve month high of $17.74. The company has a market capitalization of $404.59 million, a price-to-earnings ratio of 104.96 and a beta of 1.54.

PubMatic (NASDAQ:PUBM - Get Free Report) last issued its quarterly earnings results on Monday, August 11th. The company reported ($0.11) earnings per share (EPS) 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 analyst estimates of $67.77 million. PubMatic had a net margin of 1.90% and a return on equity of 1.99%. The business's revenue was up 5.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.04 EPS. As a group, equities research analysts expect that PubMatic will post 0.22 earnings per share for the current fiscal year.

Insider Buying and Selling at PubMatic

In other news, Chairman Amar K. Goel sold 4,417 shares of the stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $12.56, for a total transaction of $55,477.52. Following the transaction, the chairman owned 20,516 shares of the company's stock, valued at approximately $257,680.96. This trade represents a 17.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Rajeev K. Goel sold 33,001 shares of the stock in a transaction dated Wednesday, July 2nd. The stock was sold at an average price of $12.56, for a total transaction of $414,492.56. Following the transaction, the chief executive officer directly owned 32,515 shares in the company, valued at $408,388.40. The trade was a 50.37% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 285,294 shares of company stock valued at $3,449,506. Corporate insiders own 26.42% of the company's stock.

Institutional Investors Weigh In On PubMatic

Large investors have recently made changes to their positions in the company. JPMorgan Chase & Co. grew its position in PubMatic by 263.0% in the fourth quarter. JPMorgan Chase & Co. now owns 226,328 shares of the company's stock worth $3,325,000 after buying an additional 163,979 shares during the last quarter. Janney Montgomery Scott LLC acquired a new position in PubMatic in the first quarter worth approximately $379,000. Tower Research Capital LLC TRC grew its position in PubMatic by 75.2% in the fourth quarter. Tower Research Capital LLC TRC now owns 5,220 shares of the company's stock worth $77,000 after buying an additional 2,240 shares during the last quarter. Dimensional Fund Advisors LP grew its position in PubMatic by 5.8% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,533,718 shares of the company's stock worth $22,531,000 after buying an additional 84,317 shares during the last quarter. Finally, Deutsche Bank AG grew its position in PubMatic by 15.3% in the fourth quarter. Deutsche Bank AG now owns 95,117 shares of the company's stock worth $1,397,000 after buying an additional 12,645 shares during the last quarter. Institutional investors and hedge funds own 64.26% of the company's stock.

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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