Wall Street Zen Upgrades PubMatic (NASDAQ:PUBM) to “Buy”

PubMatic (NASDAQ:PUBM) was upgraded by equities researchers at Wall Street Zen from a “hold” rating to a “buy” rating in a report released on Saturday.

PUBM has been the subject of a number of other research reports. Scotiabank upgraded shares of PubMatic from a “sector perform” rating to a “sector outperform” rating and boosted their target price for the stock from $8.00 to $21.00 in a research note on Friday. Lake Street Capital restated a “buy” rating and set a $20.00 target price on shares of PubMatic in a research note on Friday. Rosenblatt Securities raised their price objective on shares of PubMatic from $21.00 to $23.00 and gave the stock a “buy” rating in a report on Friday. Raymond James Financial upgraded shares of PubMatic from a “market perform” rating to an “outperform” rating and set a $22.00 price target on the stock in a research note on Friday. Finally, Royal Bank Of Canada raised their price objective on PubMatic from $11.00 to $13.00 and gave the stock an “outperform” rating in a report on Friday, May 8th. Ten equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $17.39.

PubMatic Stock Performance

Shares of PubMatic stock opened at $17.78 on Friday. The business has a 50-day simple moving average of $12.64 and a 200-day simple moving average of $9.94. PubMatic has a one year low of $6.15 and a one year high of $18.44. The company has a market cap of $825.70 million, a PE ratio of -59.26 and a beta of 1.54.

PubMatic (NASDAQ:PUBM) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.18) by $0.15. PubMatic had a negative net margin of 4.66% and a negative return on equity of 5.41%. The company had revenue of $78.59 million during the quarter, compared to the consensus estimate of $68.95 million. On average, sell-side analysts predict that PubMatic will post -0.26 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Mukul Kumar sold 7,897 shares of the stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $13.65, for a total transaction of $107,794.05. Following the completion of the transaction, the insider directly owned 112,945 shares of the company’s stock, valued at $1,541,699.25. This represents a 6.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Chairman Amar K. Goel sold 6,584 shares of the firm’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $13.65, for a total transaction of $89,871.60. Following the completion of the sale, the chairman owned 35,580 shares of the company’s stock, valued at approximately $485,667. The trade was a 15.62% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 535,586 shares of company stock worth $7,743,191. 27.78% of the stock is currently owned by insiders.

Hedge Funds Weigh In On PubMatic

Large investors have recently modified their holdings of the business. Quarry LP acquired a new stake in shares of PubMatic in the 4th quarter valued at approximately $30,000. Caitong International Asset Management Co. Ltd boosted its stake in shares of PubMatic by 75.6% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,449 shares of the company’s stock worth $39,000 after acquiring an additional 1,915 shares in the last quarter. State of Wyoming acquired a new stake in shares of PubMatic in the 1st quarter worth approximately $61,000. Tower Research Capital LLC TRC grew its holdings in shares of PubMatic by 264.8% in the 2nd quarter. Tower Research Capital LLC TRC now owns 4,878 shares of the company’s stock worth $61,000 after acquiring an additional 3,541 shares during the period. Finally, BNP Paribas Financial Markets increased its stake in PubMatic by 120.8% in the 3rd quarter. BNP Paribas Financial Markets now owns 8,875 shares of the company’s stock valued at $73,000 after purchasing an additional 4,856 shares in the last quarter. 64.26% of the stock is owned by hedge funds and other institutional investors.

Key PubMatic News

Here are the key news stories impacting PubMatic this week:

• Positive Sentiment: PubMatic reported second-quarter revenue of $78.6 million, well above the $69.0 million consensus estimate, while adjusted earnings of $0.12 per share surpassed expectations. Revenue growth, improved profitability, and momentum across AgenticOS, connected TV, and mobile applications drove investor optimism. PubMatic Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Management forecast third-quarter revenue of $75 million to $77 million, above the roughly $71.1 million analyst consensus. The company also highlighted expansion of its AI-driven “agentic advertising” platform, supporting expectations for continued growth. PubMatic Q3 Outlook
• Positive Sentiment: Analysts raised their price targets following the results. Citizens JMP increased its target to $20 with a market-outperform rating, while Rosenblatt raised its target to $23 and maintained a buy rating. Rosenblatt Raises PubMatic Price Target
• Neutral Sentiment: PubMatic will participate in upcoming financial conferences, giving management an opportunity to discuss its strategy and growth outlook with investors. PubMatic Conference Participation
• Negative Sentiment: The company plans to increase capital expenditures to approximately $20 million-$25 million as it expands its platform, which could pressure near-term free cash flow. PubMatic also announced the planned retirement of CFO Steve Pantelick, introducing a management-transition risk.

About PubMatic

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.