On October 2, 2023, Steven Pantelick, the Chief Financial Officer (CFO) of PubMatic Inc (PUBM, Financial), sold 8,805 shares of the company. This move is part of a series of transactions made by the insider over the past year, during which Pantelick has sold a total of 126,118 shares and purchased none.
PubMatic Inc is a technology company that provides a specialized cloud infrastructure platform for digital advertising. The company's platform empowers independent app developers and publishers to control and maximize their digital advertising businesses and enables advertisers to drive ROI. PubMatic operates a flexible, scalable, and reliable platform that can handle large volumes of data and transactions.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 53 insider sells and no insider buys. This trend is illustrated in the following chart:
On the day of the insider's recent sell, shares of PubMatic Inc were trading at $11.83, giving the company a market cap of $607.374 million. The stock's price-earnings ratio stands at 195.17, significantly higher than the industry median of 27.2 and the company's historical median price-earnings ratio.
Despite the high price-earnings ratio, the stock appears to be significantly undervalued based on its GuruFocus Value (GF Value). With a price of $11.83 and a GF Value of $27.20, the stock has a price-to-GF-Value ratio of 0.43. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts. The GF Value is illustrated in the following chart:
The insider's decision to sell shares could be influenced by a variety of factors. It's important for investors to consider the broader context, including the company's valuation, the insider's trading history, and overall market conditions. While the insider's sell-off may raise questions, the stock's significant undervaluation based on its GF Value suggests potential upside for investors.
As always, investors should conduct their own due diligence and consider multiple factors before making investment decisions.
