Wall Street Zen Downgrades STUB (NYSE:STUB) to Hold

STUB (NYSE:STUB) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Saturday.

A number of other equities analysts have also weighed in on the company. Mizuho set a $11.00 target price on STUB in a research note on Friday. Oppenheimer reduced their price target on STUB from $12.00 to $11.00 and set an “outperform” rating for the company in a research note on Thursday. Weiss Ratings raised STUB from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, July 7th. Guggenheim lowered their price objective on STUB from $12.50 to $11.00 and set a “buy” rating on the stock in a research report on Thursday. Finally, UBS Group set a $7.50 target price on STUB in a report on Thursday. Four analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $10.73.

STUB Trading Down 0.7%

Shares of STUB stock opened at $8.02 on Friday. STUB has a 12-month low of $5.74 and a 12-month high of $27.89. The company has a market capitalization of $3.01 billion and a PE ratio of -1.40. The firm has a 50 day moving average price of $10.35 and a two-hundred day moving average price of $9.18. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.86.

Insider Activity at STUB

In related news, insider Mark Streams sold 28,531 shares of the business’s stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $13.02, for a total value of $371,473.62. Following the completion of the sale, the insider directly owned 1,561,122 shares in the company, valued at approximately $20,325,808.44. The trade was a 1.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Nayaab Islam sold 54,801 shares of the business’s stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $13.03, for a total value of $714,057.03. Following the completion of the sale, the insider owned 8,454,764 shares of the company’s stock, valued at approximately $110,165,574.92. This trade represents a 0.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 179,467 shares of company stock worth $2,286,430 over the last ninety days. Insiders own 30.97% of the company’s stock.

Hedge Funds Weigh In On STUB

Hedge funds have recently added to or reduced their stakes in the stock. WestCap Management LLC acquired a new position in STUB in the 4th quarter valued at $429,370,000. Capital Research Global Investors bought a new stake in shares of STUB during the 4th quarter valued at $106,887,000. Index Venture Associates III Ltd acquired a new stake in shares of STUB during the 4th quarter worth $85,192,000. PointState Capital LP grew its holdings in shares of STUB by 19.9% during the 4th quarter. PointState Capital LP now owns 24,823,335 shares of the company’s stock worth $335,860,000 after purchasing an additional 4,117,332 shares in the last quarter. Finally, Capital International Investors bought a new position in shares of STUB in the fourth quarter worth $55,235,000.

STUB News Roundup

Here are the key news stories impacting STUB this week:

• Positive Sentiment: Second-quarter revenue reached approximately $573 million, above analysts’ $532 million estimate, while gross merchandise sales benefited from strong World Cup ticket demand. The sales performance suggests continued customer demand and operating scale potential. StubHub’s Q2 Gross Merchandise Sales Beat Driven by World Cup, BofA Securities Says
• Positive Sentiment: Evercore ISI analyst Mark Mahaney maintained a Buy rating, citing StubHub’s asset-light model, execution potential and valuation after the selloff. Mark Mahaney Initiates StubHub With Buy Rating
• Neutral Sentiment: The earnings call and market commentary indicate that the World Cup created a major temporary sales boost, but investors remain uncertain whether StubHub can sustain growth and improve margins after the event. StubHub’s World Cup boom masks tougher road ahead
• Negative Sentiment: StubHub reported roughly breakeven earnings per share, missing the $0.09 consensus estimate despite the revenue beat. Costs outpaced revenue growth, erasing the expected profit boom and raising concerns about persistent profitability problems. StubHub Stock Sinks After Ticket Reseller Fails to Post Profit
• Negative Sentiment: A World Cup ticketing partnership reportedly left some customers unable to access stadiums, triggering negative publicity, litigation and potential reputational damage. StubHub tanks as World Cup ticket fiasco wipes out profit boom
• Negative Sentiment: Bank of America reaffirmed its Underperform rating and reduced its price target to $7.50 from $11, citing profitability challenges, rising costs and regulatory uncertainty. StubHub’s Post-IPO Hangover Deepens
• Negative Sentiment: Block & Leviton announced an investigation into potential securities-law violations, adding another source of legal uncertainty for shareholders. StubHub Securities Law Investigation

STUB Company Profile

Stubhub Holdings Inc, through its subsidiaries, provides an online marketplace to buy and sell tickets for sports, concerts, theater, festivals and other live events. Stubhub Holdings Inc is based in NEW YORK.