PubMatic (NASDAQ:PUBM) Trading Down 6.3% – Should You Sell?

PubMatic, Inc. (NASDAQ:PUBM)’s stock price fell 6.3% on Friday . The company traded as low as $12.75 and last traded at $12.77. Approximately 138,283 shares changed hands during mid-day trading, a decline of 80% from the average session volume of 681,073 shares. The stock had previously closed at $13.63.

Analyst Ratings Changes

Several brokerages have commented on PUBM. Wall Street Zen raised PubMatic from a “sell” rating to a “hold” rating in a research report on Saturday, April 25th. Weiss Ratings reissued a “sell (d)” rating on shares of PubMatic in a report on Tuesday, April 21st. B. Riley Financial reiterated a “buy” rating on shares of PubMatic in a research report on Friday, May 8th. Royal Bank Of Canada upped their price objective on shares of PubMatic from $11.00 to $13.00 and gave the company an “outperform” rating in a research report on Friday, May 8th. Finally, Rosenblatt Securities restated a “buy” rating and issued a $21.00 price target on shares of PubMatic in a report on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, PubMatic has an average rating of “Moderate Buy” and a consensus target price of $12.88.

PubMatic Stock Down 5.6%

The company has a market cap of $597.45 million, a price-to-earnings ratio of -33.88 and a beta of 1.51. The stock has a fifty day moving average price of $11.70 and a two-hundred day moving average price of $9.40.

PubMatic (NASDAQ:PUBM) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.27) earnings per share for the quarter, beating the consensus estimate of ($0.32) by $0.05. The firm had revenue of $62.57 million during the quarter, compared to analysts’ expectations of $60.42 million. PubMatic had a negative return on equity of 6.98% and a negative net margin of 6.21%. Analysts predict that PubMatic, Inc. will post -0.26 earnings per share for the current fiscal year.

Insider Transactions at PubMatic

In other news, insider Mukul Kumar sold 8,000 shares of the stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $11.96, for a total value of $95,680.00. Following the completion of the transaction, the insider directly owned 100,869 shares in the company, valued at approximately $1,206,393.24. This represents a 7.35% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Steven Pantelick sold 23,548 shares of the firm’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $13.65, for a total transaction of $321,430.20. Following the completion of the transaction, the chief financial officer owned 64,820 shares of the company’s stock, valued at approximately $884,793. This trade represents a 26.65% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 318,305 shares of company stock worth $3,807,773. Corporate insiders own 27.78% of the company’s stock.

Institutional Investors Weigh In On PubMatic

Several institutional investors have recently made changes to their positions in the stock. Versant Capital Management Inc raised its stake in PubMatic by 30.4% in the second quarter. Versant Capital Management Inc now owns 10,657 shares of the company’s stock valued at $140,000 after purchasing an additional 2,482 shares in the last quarter. Quantinno Capital Management LP increased its holdings in shares of PubMatic by 248.0% in the 1st quarter. Quantinno Capital Management LP now owns 206,815 shares of the company’s stock worth $1,692,000 after purchasing an additional 147,386 shares in the last quarter. Renaissance Technologies LLC boosted its position in PubMatic by 26.3% in the first quarter. Renaissance Technologies LLC now owns 1,540,533 shares of the company’s stock worth $12,602,000 after purchasing an additional 321,200 shares during the last quarter. Arrowstreet Capital Limited Partnership purchased a new position in shares of PubMatic during the 1st quarter valued at about $1,687,000. Finally, Sei Investments Co. purchased a new position in shares of PubMatic in the first quarter valued at about $129,000. Hedge funds and other institutional investors own 64.26% of the company’s stock.

PubMatic Company Profile

PubMatic is a cloud-based digital advertising technology company that provides a supply-side platform (SSP) enabling publishers to automate and optimize the sale of their ad inventory across display, mobile, video and connected TV channels. Its core offerings include real-time bidding infrastructure, header bidding solutions under the OpenWrap brand and data analytics tools that deliver actionable insights on audience engagement and monetization performance. By facilitating seamless auctions and providing transparent reporting, PubMatic helps publishers maximize yield while improving buyer experiences.

Founded in 2006 by Rajeev Goel and a team of ad-tech veterans, PubMatic grew from an early entrant in programmatic selling to a publicly traded company, listing on the Nasdaq (symbol: PUBM) in December 2020.