PubMatic (NASDAQ:PUBM) Reaches New 52-Week Low After Earnings Miss

PubMatic, Inc. (NASDAQ:PUBM)’s share price reached a new 52-week low during mid-day trading on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $7.01 and last traded at $8.34, with a volume of 3777600 shares changing hands. The stock had previously closed at $10.57.

The company reported ($0.11) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.13). PubMatic had a negative return on equity of 0.63% and a negative net margin of 0.58%. The company had revenue of $71.10 million during the quarter, compared to the consensus estimate of $67.77 million. During the same period in the previous year, the company earned $0.04 earnings per share. PubMatic’s quarterly revenue was up 5.6% on a year-over-year basis.

Analysts Set New Price Targets

A number of brokerages have weighed in on PUBM. B. Riley downgraded shares of PubMatic from a “buy” rating to a “neutral” rating and decreased their target price for the company from $17.00 to $9.00 in a research note on Tuesday. Lake Street Capital reiterated a “hold” rating and set a $9.50 price target (down previously from $19.00) on shares of PubMatic in a report on Tuesday. Scotiabank cut their price target on shares of PubMatic from $15.00 to $10.00 and set a “sector perform” rating on the stock in a report on Tuesday. Finally, Royal Bank Of Canada reiterated an “outperform” rating and set a $11.00 price target (down previously from $14.00) on shares of PubMatic in a report on Tuesday. Four investment analysts have rated the stock with a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $14.36.

Insider Activity

In related news, Chairman Amar K. Goel sold 4,417 shares of the firm’s stock in a transaction that occurred on Wednesday, July 2nd. The shares were sold at an average price of $12.56, for a total value of $55,477.52. Following the sale, the chairman owned 20,516 shares in the company, valued at approximately $257,680.96. This trade represents a 17.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, General Counsel Andrew Woods sold 4,084 shares of the firm’s stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $12.56, for a total transaction of $51,295.04. Following the completion of the sale, the general counsel owned 44,130 shares in the company, valued at $554,272.80. This represents a 8.47% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 285,294 shares of company stock valued at $3,449,506. Company insiders own 26.42% of the company’s stock.

Institutional Investors Weigh In On PubMatic

Several institutional investors and hedge funds have recently added to or reduced their stakes in PUBM. LPL Financial LLC boosted its stake in shares of PubMatic by 5.1% during the 4th quarter. LPL Financial LLC now owns 112,250 shares of the company’s stock worth $1,634,000 after acquiring an additional 5,432 shares during the last quarter. JPMorgan Chase & Co. boosted its stake in shares of PubMatic by 263.0% during the 4th quarter. JPMorgan Chase & Co. now owns 226,328 shares of the company’s stock worth $3,325,000 after acquiring an additional 163,979 shares during the last quarter. Envestnet Asset Management Inc. boosted its stake in shares of PubMatic by 12.9% during the 4th quarter. Envestnet Asset Management Inc. now owns 50,903 shares of the company’s stock worth $748,000 after acquiring an additional 5,835 shares during the last quarter. Russell Investments Group Ltd. boosted its stake in shares of PubMatic by 5.7% during the 4th quarter. Russell Investments Group Ltd. now owns 47,062 shares of the company’s stock worth $691,000 after acquiring an additional 2,528 shares during the last quarter. Finally, XTX Topco Ltd purchased a new position in shares of PubMatic during the 4th quarter worth $228,000. Hedge funds and other institutional investors own 64.26% of the company’s stock.

PubMatic Trading Down 21.1%

The company’s 50 day moving average price is $11.92 and its two-hundred day moving average price is $11.57. The firm has a market cap of $404.74 million, a PE ratio of -119.13 and a beta of 1.54.

About PubMatic

PubMatic, Inc, a technology company, engages in the provision of a cloud infrastructure platform that enables real-time programmatic advertising transactions for digital content creators, advertisers, agencies, agency trading desks, and demand side platforms worldwide. Its PubMatic SSP, a sell-side platform, used for the purchase and sale of digital advertising inventory for publishers and buyers.