On September 5, 2023, Rajeev Goel, CEO and 10% Owner of PubMatic Inc (PUBM, Financial), sold 7,500 shares of the company. This move is part of a larger trend for the insider, who over the past year has sold a total of 85,176 shares and purchased none.
Rajeev Goel is a co-founder of PubMatic and has served as the company's CEO since its inception. Under his leadership, PubMatic has grown into a leading technology platform that empowers independent app developers and publishers to control and maximize their digital advertising businesses.
PubMatic Inc is a technology company that provides a specialized cloud infrastructure platform for digital advertising. The company's platform enables real-time programmatic advertising transactions and allows app developers and publishers to increase their monetization while enabling advertisers to get more return on their marketing spend.
The insider's recent sell comes at a time when the stock is trading at $14.16 per share, giving the company a market cap of $667.805 million. This is despite the company's high price-earnings ratio of 214.58, which is significantly higher than the industry median of 27.86 and the company's historical median price-earnings ratio.
The insider transaction history for PubMatic Inc shows a clear trend of more sells than buys. Over the past year, there have been 50 insider sells and no insider buys. This trend is illustrated in the following image:
Despite the insider's sell, the stock appears to be significantly undervalued based on its GF Value. With a price of $14.16 and a GuruFocus Value of $27.04, PubMatic Inc has a price-to-GF-Value ratio of 0.52. This suggests that the stock is significantly undervalued.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts. The GF Value for PubMatic Inc is shown in the following image:
In conclusion, while the insider's recent sell may raise some eyebrows, the stock's current valuation suggests that it may still be a good buy for investors. However, as always, investors should do their own research and consider their own risk tolerance before making any investment decisions.
