PubMatic (NASDAQ:PUBM) Shares Gap Up on Better-Than-Expected Earnings

PubMatic, Inc. (NASDAQ:PUBM) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $24.02, but opened at $25.17. PubMatic shares last traded at $24.27, with a volume of 284,861 shares changing hands.

The company reported ($0.05) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.12) by $0.07. The firm had revenue of $66.70 million during the quarter, compared to analyst estimates of $62.19 million. PubMatic had a return on equity of 3.29% and a net margin of 3.33%. The business’s quarterly revenue was up 20.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.09) earnings per share.

Analyst Upgrades and Downgrades

Several research firms recently commented on PUBM. Royal Bank of Canada reaffirmed an “outperform” rating and issued a $26.00 price target on shares of PubMatic in a report on Monday, March 25th. JMP Securities upped their target price on PubMatic from $18.00 to $25.00 and gave the company a “market outperform” rating in a report on Tuesday, February 27th. Finally, B. Riley began coverage on shares of PubMatic in a report on Friday, April 19th. They set a “buy” rating and a $27.00 price objective on the stock. Two investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $22.20.

Insider Activity at PubMatic

In other news, Chairman Amar K. Goel sold 3,770 shares of the firm’s stock in a transaction dated Monday, April 8th. The stock was sold at an average price of $23.71, for a total transaction of $89,386.70. Following the sale, the chairman now owns 2,640 shares of the company’s stock, valued at $62,594.40. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. In other news, CEO Rajeev K. Goel sold 98,600 shares of the firm’s stock in a transaction that occurred on Tuesday, February 27th. The shares were sold at an average price of $20.70, for a total value of $2,041,020.00. Following the sale, the chief executive officer now directly owns 7,500 shares in the company, valued at approximately $155,250. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Chairman Amar K. Goel sold 3,770 shares of the business’s stock in a transaction that occurred on Monday, April 8th. The shares were sold at an average price of $23.71, for a total value of $89,386.70. Following the completion of the transaction, the chairman now directly owns 2,640 shares in the company, valued at $62,594.40. The disclosure for this sale can be found here. Insiders sold a total of 192,063 shares of company stock valued at $4,110,143 over the last quarter. Corporate insiders own 2.90% of the company’s stock.

Institutional Trading of PubMatic

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Russell Investments Group Ltd. increased its position in PubMatic by 1,073.9% during the 1st quarter. Russell Investments Group Ltd. now owns 126,037 shares of the company’s stock valued at $2,990,000 after buying an additional 115,300 shares in the last quarter. Inspire Investing LLC bought a new stake in PubMatic in the first quarter worth $1,249,000. Sei Investments Co. purchased a new stake in shares of PubMatic in the first quarter worth approximately $572,000. SG Americas Securities LLC purchased a new stake in PubMatic in the 1st quarter valued at about $107,000. Finally, Empowered Funds LLC raised its position in PubMatic by 9.1% during the 1st quarter. Empowered Funds LLC now owns 19,606 shares of the company’s stock valued at $465,000 after purchasing an additional 1,632 shares in the last quarter. 64.26% of the stock is currently owned by institutional investors.

PubMatic Stock Up 0.3 %

The stock’s 50 day moving average price is $22.53 and its 200-day moving average price is $17.87. The stock has a market capitalization of $1.21 billion, a P/E ratio of 166.68 and a beta of 1.52.

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.