STUB (NYSE:STUB) Trading Down 9% - Here's What Happened

Key Points

• STUB shares fell about 9% in mid-day trading, hitting an intraday low of $9.70 after closing at $10.67 the previous session.
• Broker sentiment has softened: while some firms still rate the stock a buy, recent moves included downgrades from Wall Street Zen and BMO Capital Markets. The stock now has an average Hold rating with a consensus price target of $11.50.
• The company recently posted better-than-expected earnings, with Q1 EPS of $0.06 versus a loss estimate and revenue up 12.2% year over year, but insider selling has been notable, including recent sales by Mark Streams and Nayaab Islam.

STUB (NYSE:STUB - Get Free Report) fell 9% during mid-day trading on Wednesday . The company traded as low as $9.70 and last traded at $9.7090. 4,180,890 shares changed hands during mid-day trading, a decline of 19% from the average session volume of 5,172,838 shares. The stock had previously closed at $10.67.

Analyst Ratings Changes

Several brokerages have recently commented on STUB. Guggenheim reaffirmed a "buy" rating on shares of STUB in a report on Friday, June 12th. Citigroup started coverage on STUB in a research note on Tuesday, May 19th. They issued a "buy" rating on the stock. Craig Hallum downgraded STUB from a "hold" rating to a "hold" rating in a report on Tuesday, May 19th. Wall Street Zen lowered shares of STUB from a "buy" rating to a "hold" rating in a research note on Saturday, June 13th. Finally, BMO Capital Markets cut shares of STUB from an "outperform" rating to a "market perform" rating in a report on Tuesday, May 19th. Five investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $11.50.

STUB Trading Down 9.9%

The business has a 50-day moving average of $10.49. 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 stock has a market cap of $3.61 billion and a PE ratio of -15.90.

STUB (NYSE:STUB - Get Free Report) last released its earnings results on Wednesday, May 13th. The company reported $0.06 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.01) by $0.07. The business had revenue of $446.05 million during the quarter. The firm's revenue for the quarter was up 12.2% on a year-over-year basis. As a group, research analysts expect that STUB will post 0.56 earnings per share for the current year.

Insider Activity

In other STUB news, insider Mark Streams sold 28,531 shares of the firm's stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $13.02, for a total transaction of $371,473.62. Following the completion of the sale, the insider directly owned 1,561,122 shares in the company, valued at approximately $20,325,808.44. This trade represents a 1.79% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Nayaab Islam sold 2,800 shares of STUB stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $14.01, for a total value of $39,228.00. Following the transaction, the insider directly owned 8,451,964 shares in the company, valued at approximately $118,412,015.64. This trade represents a 0.03% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 413,647 shares of company stock valued at $4,401,046. Company insiders own 30.97% of the company's stock.

Institutional Trading of STUB

Institutional investors have recently made changes to their positions in the stock. Pittenger & Anderson Inc. acquired a new position in STUB in the 1st quarter valued at approximately $34,000. Royal Bank of Canada grew its holdings in shares of STUB by 194.4% during the 1st quarter. Royal Bank of Canada now owns 6,382 shares of the company's stock valued at $39,000 after acquiring an additional 4,214 shares in the last quarter. Lido Advisors LLC purchased a new position in shares of STUB during the 1st quarter valued at $69,000. Garner Asset Management Corp acquired a new position in shares of STUB in the fourth quarter worth $92,000. Finally, The Manufacturers Life Insurance Company acquired a new position in shares of STUB in the fourth quarter worth $143,000.

STUB Company Profile

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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