Taboola.com (NASDAQ:TBLA) Shares Gap Up Following Earnings Beat

Key Points

• EPS beat and stock jump: Taboola reported Q results of $0.20 EPS versus ($0.01) expected and $466.4M revenue (+9.1% YoY), prompting the shares to gap up from $3.81 to $4.26 and trade around $4.33 (up ~12.7%) on ~1.42M shares.
• Analyst view: The stock has a consensus rating of "Moderate Buy" (4 Buy, 3 Hold) with a $5.00 consensus price target, while individual firms like Rosenblatt have raised targets (to $7) and Needham maintains a $4.50 target.
• Key fundamentals: Market cap is about $1.04B, P/E ~28.7, net margin 2.21% and ROE 11.97%, with institutions owning roughly 42.9% of the shares.

Taboola.com Ltd. (NASDAQ:TBLA - Get Free Report) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $3.81, but opened at $4.26. Taboola.com shares last traded at $4.3290, with a volume of 1,422,619 shares trading hands.

The company reported $0.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.01) by $0.21. Taboola.com had a net margin of 2.21% and a return on equity of 11.97%. The business had revenue of $466.40 million for the quarter, compared to analysts' expectations of $453.30 million. During the same quarter in the previous year, the firm posted ($0.03) EPS. The business's revenue for the quarter was up 9.1% compared to the same quarter last year.

Wall Street Analyst Weigh In

TBLA has been the subject of a number of recent analyst reports. Weiss Ratings restated a "hold (c)" rating on shares of Taboola.com in a research report on Tuesday, April 21st. Zacks Research lowered shares of Taboola.com from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 27th. Needham & Company LLC restated a "buy" rating and set a $4.50 price target on shares of Taboola.com in a research report on Wednesday, February 25th. Wall Street Zen lowered shares of Taboola.com from a "strong-buy" rating to a "buy" rating in a research report on Saturday, February 28th. Finally, Rosenblatt Securities upped their price target on shares of Taboola.com from $6.00 to $7.00 and gave the company a "buy" rating in a research report on Thursday, February 26th. Four investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $5.00.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in TBLA. Quarry LP bought a new position in Taboola.com in the third quarter worth approximately $42,000. Headlands Technologies LLC bought a new position in Taboola.com in the second quarter worth approximately $43,000. Captrust Financial Advisors bought a new stake in shares of Taboola.com during the 2nd quarter valued at $46,000. Abacus Wealth Partners LLC bought a new stake in shares of Taboola.com during the 4th quarter valued at $48,000. Finally, Schonfeld Strategic Advisors LLC bought a new stake in shares of Taboola.com during the 3rd quarter valued at $54,000. 42.89% of the stock is currently owned by institutional investors.

Taboola.com Stock Up 12.7%

The stock has a market capitalization of $1.04 billion, a P/E ratio of 28.70 and a beta of 1.43. The company's 50-day moving average price is $3.33 and its 200 day moving average price is $3.71. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.07 and a current ratio of 1.07.

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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