STUB (NYSE:STUB) Shares Down 5.4% - Here's Why

Key Points

• STUB shares fell 5.4% on Thursday, trading as low as $12.04 on lighter-than-usual volume before closing near $12.02.
• Recent analyst activity has been mixed, with one upgrade and several hold/neutral views. The stock currently has a consensus Hold rating and an average target price of $11.50.
• The company recently reported better-than-expected quarterly earnings, posting $0.06 EPS versus an expected loss, while revenue rose 12.2% year over year to $446.05 million. Insider selling also picked up, with multiple executives selling shares in July.

STUB (NYSE:STUB - Get Free Report) was down 5.4% on Thursday . The stock traded as low as $12.04 and last traded at $12.0150. 1,820,517 shares were traded during mid-day trading, a decline of 64% from the average session volume of 5,121,646 shares. The stock had previously closed at $12.70.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on STUB. Sanford C. Bernstein upgraded STUB to an "outperform" rating in a research report on Tuesday, May 19th. UBS Group assumed coverage on STUB in a report on Tuesday, May 19th. They issued a "neutral" rating for the company. Wall Street Zen lowered STUB from a "buy" rating to a "hold" rating in a research note on Saturday, June 13th. Craig Hallum cut STUB from a "hold" rating to a "hold" rating in a report on Tuesday, May 19th. Finally, Morgan Stanley boosted their target price on STUB from $8.75 to $10.00 and gave the stock an "equal weight" rating in a research report on Wednesday, June 10th. Five analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $11.50.

STUB Trading Down 6.0%

The company has a debt-to-equity ratio of 0.96, a current ratio of 1.10 and a quick ratio of 1.10. The firm has a market capitalization of $4.48 billion and a price-to-earnings ratio of -19.86. The stock has a 50 day moving average of $10.22.

STUB (NYSE:STUB - Get Free Report) last posted its quarterly earnings data on Wednesday, May 13th. The company reported $0.06 EPS for the quarter, beating the consensus estimate of ($0.01) by $0.07. The company had revenue of $446.05 million during the quarter. The company's revenue was up 12.2% compared to the same quarter last year. On average, analysts anticipate that STUB will post 0.56 EPS for the current fiscal year.

Insider Activity at STUB

In other news, insider Mark Streams sold 28,531 shares of the firm's stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $13.02, for a total transaction of $371,473.62. Following the completion of the transaction, the insider directly owned 1,561,122 shares of the company's stock, valued at $20,325,808.44. This trade represents a 1.79% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Nayaab Islam sold 54,801 shares of STUB stock in a transaction on Monday, July 6th. The shares were sold at an average price of $13.03, for a total transaction of $714,057.03. Following the completion of the sale, the insider owned 8,454,764 shares in the company, valued at $110,165,574.92. The trade was a 0.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 412,066 shares of company stock worth $4,366,738 in the last 90 days. Company insiders own 30.97% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. CWM LLC lifted its holdings in STUB by 56,638.1% during the 4th quarter. CWM LLC now owns 276,882 shares of the company's stock valued at $3,746,000 after purchasing an additional 276,394 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in shares of STUB in the fourth quarter valued at $1,044,000. Garner Asset Management Corp bought a new position in shares of STUB in the fourth quarter valued at about $92,000. International Assets Investment Management LLC bought a new position in shares of STUB in the fourth quarter valued at about $149,000. Finally, Baader Bank Aktiengesellschaft acquired a new stake in shares of STUB during the 4th quarter worth about $1,015,000.

About STUB

Stubhub Holdings Inc, through its subsidiaries, provides an online marketplace to buy and sell tickets for sports, concerts, theater, festivals and other live events. Stubhub Holdings Inc is based in NEW YORK.

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