PubMatic (NASDAQ:PUBM) Shares Gap Up – Still a Buy?

PubMatic, Inc. (NASDAQ:PUBM) gapped up prior to trading on Friday . The stock had previously closed at $11.00, but opened at $11.98. PubMatic shares last traded at $11.82, with a volume of 132,717 shares.

Analyst Ratings Changes

PUBM has been the topic of several recent analyst reports. Lake Street Capital reduced their price target on shares of PubMatic from $21.00 to $19.00 and set a “buy” rating on the stock in a research note on Friday. Scotiabank lowered their price target on shares of PubMatic from $17.00 to $15.00 and set a “sector perform” rating on the stock in a report on Friday, February 28th. Royal Bank of Canada decreased their price target on PubMatic from $17.00 to $14.00 and set an “outperform” rating for the company in a research note on Friday, May 2nd. Finally, JMP Securities reiterated a “market outperform” rating and set a $20.00 price objective on shares of PubMatic in a research note on Monday, January 27th. Four investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $19.11.

PubMatic Price Performance

The business’s fifty day simple moving average is $9.43 and its two-hundred day simple moving average is $13.24. The company has a market cap of $540.11 million, a PE ratio of 35.90 and a beta of 1.49.

PubMatic (NASDAQ:PUBM) last posted its quarterly earnings data on Thursday, May 8th. The company reported ($0.20) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.18). PubMatic had a net margin of 5.96% and a return on equity of 6.12%. The company had revenue of $63.83 million for the quarter, compared to analysts’ expectations of $62.07 million. During the same period in the previous year, the business earned ($0.05) earnings per share. The business’s revenue for the quarter was down 4.3% on a year-over-year basis. As a group, analysts predict that PubMatic, Inc. will post 0.22 EPS for the current year.

Insider Activity at PubMatic

In related news, insider Mukul Kumar sold 7,000 shares of PubMatic stock in a transaction that occurred on Monday, February 10th. The stock was sold at an average price of $16.51, for a total transaction of $115,570.00. Following the transaction, the insider now owns 52,005 shares in the company, valued at approximately $858,602.55. This trade represents a 11.86 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Rajeev K. Goel sold 25,000 shares of the firm’s stock in a transaction dated Tuesday, April 1st. The stock was sold at an average price of $9.14, for a total transaction of $228,500.00. Following the sale, the chief executive officer now owns 32,304 shares of the company’s stock, valued at approximately $295,258.56. The trade was a 43.63 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 87,019 shares of company stock valued at $871,627. 2.90% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Barclays PLC raised its stake in shares of PubMatic by 93.1% in the third quarter. Barclays PLC now owns 129,196 shares of the company’s stock valued at $1,921,000 after acquiring an additional 62,284 shares in the last quarter. Franklin Resources Inc. acquired a new stake in PubMatic in the 3rd quarter valued at about $941,000. JPMorgan Chase & Co. boosted its stake in shares of PubMatic by 239.3% in the 3rd quarter. JPMorgan Chase & Co. now owns 62,349 shares of the company’s stock valued at $927,000 after buying an additional 43,971 shares during the period. Nordea Investment Management AB grew its position in shares of PubMatic by 377.4% during the fourth quarter. Nordea Investment Management AB now owns 340,544 shares of the company’s stock worth $5,101,000 after buying an additional 269,217 shares in the last quarter. Finally, Leibman Financial Services Inc. increased its stake in shares of PubMatic by 17.0% during the fourth quarter. Leibman Financial Services Inc. now owns 56,690 shares of the company’s stock worth $833,000 after buying an additional 8,231 shares during the period. 64.26% of the stock is currently owned by hedge funds and other institutional investors.

PubMatic Company Profile

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.