PubMatic, Inc. (NASDAQ:PUBM), a profitable digital advertising technology company with a market capitalization of $408 million, reported that Chief Growth Officer Paulina Klimenko recently sold shares of the company’s Class A common stock in a transaction filed with the Securities and Exchange Commission. On April 2, 2025, Klimenko sold 7,624 shares at a weighted average price of $9.31, totaling approximately $70,958. This sale was conducted to cover tax withholding obligations related to the vesting and settlement of restricted stock units (RSUs).
The transaction was part of a "sell to cover" arrangement, which is a common practice for executives to manage tax liabilities arising from stock-based compensation. Following this sale, Klimenko holds 38,592 shares of PubMatic’s Class A common stock directly. The stock, which currently trades near its 52-week low of $8.32, has seen a significant decline of 64% over the past year, though InvestingPro analysis suggests the company is currently undervalued.
In addition to the sale, Klimenko acquired 21,334 shares without any cost through the exercise of stock options on April 1, 2025. This acquisition came as part of a series of transactions involving the vesting of RSUs, which do not require payment upon conversion to common stock.
These transactions reflect ongoing management of equity holdings by PubMatic’s executive team as they navigate the complexities of stock-based compensation and tax obligations.
In other recent news, PubMatic Inc. reported a strong performance for the fourth quarter of 2024, with earnings per share (EPS) of $0.41, significantly surpassing the forecast of $0.24. However, the company faced a slight revenue miss, posting $85.5 million against the anticipated $88.46 million. Despite the revenue shortfall, PubMatic’s CTV revenue more than doubled in 2024, becoming a critical growth driver. The company ended the year with $140.6 million in cash and no debt, highlighting its financial stability.
Analysts at Citizens JMP recently adjusted their price target for PubMatic, reducing it from $20.00 to $18.00 while maintaining a Market Outperform rating. The adjustment follows the company’s announcement of its fourth-quarter performance, which was affected by a major Demand-Side Platform (DSP) partner’s transition to a first-price auction model. JMP analysts, however, maintain a $61.00 price target, underscoring their confidence in the company’s growth potential, particularly in high-growth areas like Connected TV (CTV).
PubMatic’s strategic initiatives, including Supply Path Optimization (SPO), accounted for 53% of the company’s activity in 2024, marking an 8-point year-over-year increase. The company anticipates high single-digit growth by the end of 2025, despite challenging comparisons due to political advertising cycles. The firm’s focus on emerging business ventures like Connect and Activate has shown promising development, with "emerging" revenue doubling year-over-year in 2024.
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