Taboola.com (NASDAQ:TBLA) Shares Gap Down on Disappointing Earnings

Key Points

• Taboola.com shares plunged after the company reported disappointing quarterly results, opening at $3.73 versus a prior close of $5.29. The stock last traded at $4.09.
• Quarterly earnings were $0.01 per share, below the $0.05 consensus estimate, while revenue of $476.83 million missed expectations of $499.43 million. Revenue nevertheless increased 2.4% year over year.
• Analyst sentiment remains favorable, with five Buy ratings and three Holds producing a “Moderate Buy” consensus and a $5.90 target price. However, major shareholder Apollo Management sold 12 million shares, reducing its ownership by nearly 40%.

Shares of Taboola.com Ltd. (NASDAQ:TBLA - Get Free Report) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $5.29, but opened at $3.73. Taboola.com shares last traded at $4.09, with a volume of 2,113,294 shares changing hands.

The company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.05 by ($0.04). Taboola.com had a net margin of 5.64% and a return on equity of 10.72%. The firm had revenue of $476.83 million for the quarter, compared to the consensus estimate of $499.43 million. During the same period in the previous year, the company earned ($0.01) earnings per share. Taboola.com's quarterly revenue was up 2.4% compared to the same quarter last year.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. TD Cowen upped their price objective on Taboola.com from $4.00 to $6.00 and gave the stock a "buy" rating in a research note on Monday, May 11th. Needham & Company LLC boosted their price target on Taboola.com from $4.50 to $5.50 and gave the company a "buy" rating in a report on Thursday, May 7th. Weiss Ratings restated a "hold (c)" rating on shares of Taboola.com in a research report on Friday, July 17th. Wall Street Zen raised Taboola.com from a "buy" rating to a "strong-buy" rating in a research note on Saturday, May 9th. Finally, Benchmark boosted their price objective on Taboola.com from $4.50 to $6.50 and gave the company a "buy" rating in a research note on Thursday, May 7th. Five investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $5.90.

Insider Buying and Selling

In other Taboola.com news, major shareholder Apollo Management Holdings Gp, sold 12,000,000 shares of the firm's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $4.40, for a total transaction of $52,800,000.00. Following the sale, the insider directly owned 18,039,644 shares of the company's stock, valued at $79,374,433.60. This trade represents a 39.95% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 20.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Taboola.com

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Abacus Wealth Partners LLC bought a new position in Taboola.com in the 4th quarter worth approximately $48,000. Headlands Technologies LLC purchased a new stake in Taboola.com during the 2nd quarter valued at approximately $43,000. DGS Capital Management LLC bought a new stake in shares of Taboola.com during the fourth quarter valued at approximately $55,000. Quarry LP bought a new stake in shares of Taboola.com during the third quarter valued at approximately $42,000. Finally, Captrust Financial Advisors purchased a new position in shares of Taboola.com in the second quarter worth $46,000. Institutional investors own 42.89% of the company's stock.

Taboola.com Price Performance

The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 0.07. The firm's fifty day moving average price is $5.00 and its 200 day moving average price is $4.18. The stock has a market cap of $982.89 million, a PE ratio of 10.63 and a beta of 1.50.

About Taboola.com

Taboola.com NASDAQ: TBLA operates a leading content discovery platform that connects advertisers with premium publishers through native advertising and personalized recommendations. The company’s technology analyzes user behavior and contextual information to deliver promoted content, video, and product recommendations to audiences across a network of thousands of websites and mobile apps. By leveraging machine learning and big data, Taboola helps publishers generate incremental revenue while enabling advertisers to reach engaged users at scale.

Taboola’s suite of products includes feed placements, video recommendations, and sponsored content units designed to blend seamlessly with editorial pages.

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